Question 1

According to Dr. Brian Junling Li, the vice president of Alibaba Group, innovation:
A) comes from organized plans.
B) should necessarily build on new inventions.
C) should be based solely on a new concept or product.
D) comes from the preparedness to deal with the uncertainty of the future.

Accepted Answer

Innovation often involves dealing with the unknown and preparing for future uncertainties rather than strictly following organized plans or solely relying on new inventions or concepts.

Question 2

Samantha, the technical lead at Marrium Infotech, is against the management's decision to try market-creating innovations instead of performance-improving or efficiency-enhancing innovations. The management justifies its view by saying that this would create a new market and enhance the company's growth. Which of the following statements can Samantha use to justify her viewpoint?
A) The market-creating innovation will fail to create a new class of consumers.
B) The market-creating innovation results cannot be tested in the market before the product's release.
C) Implementing market-creating innovations will lead to a decrease in the company's revenue.
D) Implementing market-creating innovations will prevent a company from reaching prospective customers.

Accepted Answer

Market-creating innovations often involve introducing entirely new products or services for which there is no existing market, making it challenging to test their viability or demand before release. This uncertainty can be a significant risk, as opposed to performance-improving or efficiency-enhancing innovations that build on existing markets or technologies.

Question 3

Jillone Technocraft has developed a new kind of couch that can be converted into bedding without the efforts of having to pump air in or out. The new technology behind the making of this couch is unique and a complete innovation by the design team at Jillone. Although the company is not sure how effective it will be in attracting a new customer base, it is still confident and wants to take the risk. Which of the following is most likely the reason Jillone has chosen to incorporate market-creating innovation?
A) It wants the company to grow in size and achieve an increase in its revenue.
B) Profit generation is certain.
C) It wants to test its product in the market before the product's release.
D) Time-consumption during the development phase is minimal.

Accepted Answer

Market-creating innovations are typically pursued to grow a company's size and increase its revenue by introducing new products or services that create new markets or significantly expand existing ones. Jillone Technocraft's development of a new kind of couch represents an attempt to innovate and potentially attract a new customer base, indicating a desire for growth and increased revenue.

Question 4

RandomGoodies, a departmental store, wants to reach the lower-income segment of the market as it knows that most people in developing economies are unable to afford highly priced goods. To accomplish efficiency-enhancing innovation, the store limits the number of products in the store. It also sources its products from low-cost suppliers. Which of the following statements is true in this scenario?
A) The potential for generating profits is uncertain.
B) Decisions are based on short-term metrics.
C) Resources are made cheaper.
D) New jobs can be easily created.

Accepted Answer

The answer of RandomGoodies, a departmental store, wants to reach...

Question 5

Which of the following differentiates market-creating innovations from performance or efficiency innovations making it the least likely choice by companies?
A) Unlike performance or efficiency innovations, market-creating innovations cannot create a new class of consumers.
B) Unlike performance or efficiency innovations, market-creating innovations cannot increase a company's revenue.
C) Unlike performance or efficiency innovations, market-creating innovations involve investment decisions that are often based on short-term metrics.
D) Unlike performance or efficiency innovations, market-creating innovations prevent companies from growing in size.

Accepted Answer

Market-creating innovations often require long-term investment and a vision that goes beyond short-term metrics, making them less appealing to companies focused on immediate financial performance. Performance or efficiency innovations, on the other hand, typically aim at improving existing processes or products and often have clearer, short-term financial benefits.

Question 6

The design and research team at GrowGen Next has worked on changing children's perspective on scans and other diagnostic tests by surrounding the designated areas or clinics with fun-filled items and activities. The children, who were previously scared to enter the scan room, now find it entertaining as the complete set-up has been modified by displaying cartoon characters throughout the scan process. This scenario exemplifies the concept of _____.
A) individualism
B) innovation
C) fortification
D) attribution

Accepted Answer

The scenario exemplifies "innovation" because it describes a novel approach to changing children's perspectives on scans and diagnostic tests by making the environment more entertaining and less intimidating, which is a creative solution to a common problem.

Question 7

The management at Graphon Systems believes in performance-improving innovations. It makes its design team work on the existing models of the company's products to innovate newer versions of the same products that would possess an enhanced look and have greater functional aspects. Which of the following statements is true in this scenario?
A) The company would have limited potential to capture additional market share.
B) Resources used for the production of a product's existing models cannot be shifted to the production line for the new models.
C) There will be a huge potential for the creation of new jobs.
D) Sales of the newer versions of the products will not be able to replace the sales of the existing versions of the products.

Accepted Answer

By innovating and improving existing products, the company can potentially capture additional market share by attracting new customers and retaining existing ones with enhanced product offerings.

Question 8

The research team at Life's On Laboratories have been working on the creation of new medicine that could effectively treat Alzheimer's disease at a faster rater without facing the side effects that are usually caused by the existing medicines. After a decade-long research, the team at Life's On successfully formulated a unique composition to treat the disease, which would make a significant contribution to the healthcare industry. In this scenario, the new and unique medicine developed by the research team at Life's On Labs exemplifies _____.
A) enrichment
B) fortification
C) an assertion
D) an invention

Accepted Answer

The new and unique medicine developed by the research team at Life's On Labs is an example of an invention, as it represents a novel creation that contributes to the healthcare industry by offering a new treatment for Alzheimer's disease.

Question 9

Frido Innovative Techno has several regional research and development centers spread across the world. The firm believes that its centers around the world can lead to continued innovation as the centers can concentrate on the demands within their particular regions. However, it has been observed that there is a serious lack of communication among the workers at the various regional centers. As a result, they are working on similar problems without sharing their results. Which of the following is most likely to happen in this scenario?
A) There will be duplication of effort.
B) There will be a less number of job opportunities.
C) The company cannot reach the lower-income segment of the market.
D) Rates of developed products will be unaffordable to the local public.

Accepted Answer

Duplication of effort is likely because workers at different centers are working on similar problems without sharing their results, leading to redundant work.

Question 10

Which of the following statements is true in the context of innovation as a tool for global growth?
A) Invention is the commercialization of a new innovation.
B) Innovations should necessarily build on new inventions.
C) Innovations are successful when based on organized plans.
D) Innovation is the combination of ideas to create something desired by customers.

Accepted Answer

Innovation involves combining ideas in novel ways to create something that meets a need or desire of customers. It doesn't always have to be based on new inventions; it can also involve new methods, ideas, or products that add value.

Question 11

Which of the following is a difference between efficiency-enhancing innovations and market-creating innovations?
A) Unlike efficiency-enhancing innovations, market-creating innovations lead to decreasing revenue of a company.
B) Unlike efficiency-enhancing innovations, market-creating innovations prevent companies from growing in size.
C) Unlike efficiency-enhancing innovations, market-creating innovations create a new class of consumers.
D) Unlike efficiency-enhancing innovations, market-creating innovations provide certainty in generating profits.

Accepted Answer

Market-creating innovations introduce new products or services that create new markets and new demand, thereby attracting a new class of consumers. Efficiency-enhancing innovations, on the other hand, focus on improving the efficiency and productivity within existing markets without necessarily creating new consumer segments.

Question 12

Which of the following statements is true of market-creating innovations?
A) Investment decisions are usually based on long-term metrics.
B) Their potential for generating profits is uncertain.
C) Newly-created products can be tested in the market before their release.
D) They tend to attract repeat customers rather than first-time buyers.

Accepted Answer

Market-creating innovations are characterized by uncertainty in their potential for generating profits.

Question 13

The management at Hioven Phones believes in performance-improving innovations. The team decides to remodel its second version of cell phone with enhanced user-interfaces and launch a new third version of the same cell phone. Which of the following is likely to happen in this scenario?
A) First-time buyers are more likely to be attracted than repeat customers.
B) Resources used for the production of the old version of the cell phone cannot be shifted to the production line for the new version.
C) There will be a huge potential for creation of new jobs.
D) Sales of the new version of the cell phone will replace sales of the older version.

Accepted Answer

When a new version of a product is launched, it often replaces the older version in the market, leading to a shift in sales from the old version to the new one.

Question 14

Which of the following is a difference between innovation and an invention?
A) Innovation is the combination of new or existing ideas, whereas an invention is a completely new concept or product.
B) Innovations necessarily build on new inventions, whereas inventions do not necessarily build on innovations.
C) A new invention is the commercialization of innovation, whereas the vice versa is not true.
D) Innovation is the creation of a product for the first time, whereas invention is the improvement of an existing product.

Accepted Answer

Innovation involves the creative application of new or existing ideas to improve or create products, services, or processes, while an invention is the creation of something completely new.

Question 15

Dasat Automotives intends to remodel the design of its cars' existing interiors to increase the level of the car seats' comfortability. This change exemplifies:
A) effectiveness-improving innovation.
B) viability innovation.
C) existential innovation.
D) performance-improving innovation.

Accepted Answer

The remodeling of car interiors to increase seat comfort directly aims to enhance the performance of the product, making it a performance-improving innovation. This type of innovation focuses on enhancing the existing capabilities or features of a product to deliver better results or user experience.

Question 16

Through _____, people from different companies and independent contractors work collaboratively with internal research and development (R&D) to combine new or existing ideas to create marketable value.
A) needs analysis research
B) open innovation platforms
C) market trading programs
D) proactive invention plans

Accepted Answer

Open innovation platforms facilitate collaboration between individuals from different organizations and independent contractors with internal R&D teams, aiming to merge new or existing ideas to generate value that can be brought to the market. This approach contrasts with traditional, closed models where innovation is driven solely within the confines of a single organization.

Question 17

The grocery store FullBasket Goods has made changes to its existing workflow. FullBasket Goods accepts only debit cards and cash as payment for the purchased items, and it does not provide shopping bags to its customers. Which of the following kinds of innovations is FullBasket implementing in this scenario?
A) Efficiency-enhancing innovation
B) Performance-improving innovation
C) Market-creating innovation
D) Disruptive innovation

Accepted Answer

The changes made by FullBasket Goods aim to streamline operations and possibly reduce costs, which aligns with the concept of efficiency-enhancing innovation. This type of innovation focuses on making processes more efficient without necessarily changing the core product or service.

Question 18

Gama Technosoft plans to remodel and restructure their cell phones and to launch a new version. However, Linda, the head of the design team, was skeptic of this idea. The management tried to convince Linda saying that it will keep the company growing as the new product will be refreshing for the customers. Which of the following statements can justify Linda's viewpoint in this scenario?
A) It would only attract first-time buyers and not the existing customers.
B) An improvement to the existing product will discourage private spending by increasing taxes.
C) The sales of a new model will not be able to replace the sales of the existing model.
D) It will have limited potential to capture additional market share.

Accepted Answer

The answer of Gama Technosoft plans to remodel and restructure...

Question 19

ThroHon Tech considers its customers to be co-innovators and believes in involving them in the innovation process. It has begun its own innovation management software that can be accessed by a Web browser for tracking innovation programs. This software is a platform that provides complete data starting from the base idea up to the execution process of an entire program. This allows global customers who are technically proficient to suggest improvements and provide their views. This initiative by ThroHon Tech exemplifies the use of _____.
A) balanced benchmarking chains
B) open innovation platforms
C) market trading analyses
D) proactive invention plans

Accepted Answer

ThroHon Tech's initiative of involving customers in the innovation process through a software platform exemplifies the use of open innovation platforms. This approach allows external stakeholders to contribute to the development and improvement of products or services.

Question 20

Which of the following exemplifies a market-creating innovation?
A) Haiview remodels its existing version of cell phones by creating a slimmer phone body and enabling finger-print locking to launch a new version of it.
B) Vaive systems introduces a unique on-site power supply system that was non-existent in the market before its launch.
C) Rothash Stores accepts only debit cards and cash as payment for its goods.
D) A grocery store in the city of Kakun sells existing products at lower price points.

Accepted Answer

Market-creating innovations introduce products or services that were not available in the market before, creating a new market. Vaive systems' introduction of a unique on-site power supply system that did not exist prior to its launch is an example of this, as it opens up a new market by offering a novel solution.

Quiz 12: Global Innovation and Intellectual Property

According to Dr. Brian Junling Li, the vice president of Alibaba Group, innovation:

Which of the following differentiates market-creating innovations from performance or efficiency innovations making it the least likely choice by companies?

Which of the following statements is true in the context of innovation as a tool for global growth?

Which of the following is a difference between efficiency-enhancing innovations and market-creating innovations?

Which of the following statements is true of market-creating innovations?

The management at Hioven Phones believes in performance-improving innovations. The team decides to remodel its second version of cell phone with enhanced user-interfaces and launch a new third version of the same cell phone. Which of the following is likely to happen in this scenario?

Which of the following is a difference between innovation and an invention?

Dasat Automotives intends to remodel the design of its cars' existing interiors to increase the level of the car seats' comfortability. This change exemplifies:

Through _____, people from different companies and independent contractors work collaboratively with internal research and development (R&D) to combine new or existing ideas to create marketable value.

Which of the following exemplifies a market-creating innovation?