Question 1

Radical innovations

Accepted Answer

Radical innovations produce fundamental changes by evoking major departures from existing practices. These breakthrough innovations usually occur because of technological change. They tend to be highly disruptive and can transform a company or even revolutionize a whole industry.

Question 2

________ means individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions,problems,and ideas from different fields that allows them the opportunity to creatively see opportunities others miss.

Accepted Answer

Those with the innovator DNA trait called associating have the ability to connect seemingly unrelated questions, problems, and ideas from different fields. This allows them to creatively see opportunities that others miss.

Question 3

Which of the following is not characteristic of a disruptive innovation?

Accepted Answer

Disruptive innovations are technologically simpler and less sophisticated than currently available products or services. They appeal to less demanding customers who are seeking more convenient, less expensive solutions. They take time to take effect and only become disruptive once they have taken root in a new market or low-end part of an existing market.

Question 4

Whereas ________ are often associated with a low-cost leader strategy,________ are frequently an important aspect of a differentiation strategy.

Accepted Answer

Process innovations are often associated with overall cost leader strategies because the aim of many process improvements is to lower the costs of operations. Product innovations are commonly associated with a differentiation strategy. Firms that differentiate by providing customers with new products or services that offer unique features or quality enhancements often engage in product innovation.

Question 5

Innovation involves using ________ knowledge to ________ organizational processes or create commercially viable products and services.

Accepted Answer

Innovation involves using new knowledge to transform organizational processes or create commercially viable products and services. The emphasis on newness is a key point. Innovation involves introducing or changing to something new.

Question 6

Pierre Omidyar saw the opportunity that led to eBay when he linked three items: (1)a personal fascination with creating more efficient markets,(2)the desire of his fiancée to locate hard-to-find collectible Pez dispensers,and (3)the ineffectiveness of local classified ads in locating such items.This is an example of which innovator DNA trait?

Accepted Answer

This is an example of the associating trait. Innovators have the ability to connect seemingly unrelated questions, problems, and ideas from different fields. This allows them to creatively see opportunities that others miss.

Question 7

Which of the following is not a dilemma faced by corporations trying to manage the innovation process?

Accepted Answer

Innovation is difficult in part because the process involves so many choices. These choices present five dilemmas that companies must wrestle with when pursuing innovation. These include decisions such as:seeds versus weeds, experience versus initiative, internal versus external staffing, building capabilities versus collaborating, and incremental versus preemptive launch.

Question 8

Which habit is most directly related to the innovative process that managers should acquire as they start to build the innovative DNA needed to be more successful innovators in the future?

Accepted Answer

By questioning, observing, experimenting, and networking as part of the innovative process, managers will not only make better innovation decisions now but, more importantly, start to build the innovative DNA needed to be more successful innovators in the future. As they get into the practice of these habits, decision makers will see opportunities and be more creative as they associate information from different parts of their life, different people they come in contact with, and different parts of their organizations. The ability to innovate is not hard-wired into our brains at birth.

Question 9

Creative intelligence involves the ability to see patterns in data,integrating data,and making insights.Which of the following are the four patterns of action managers should to develop more creative and higher potential innovations?

Accepted Answer

The key attribute that firms need to develop in their managers in order to improve their innovative potential is creative intelligence. Creative intelligence is driven by a core skill of associating (the ability to see patterns in data and integrating different questions, information, and insights) and four patterns of action:questioning, observing, experimenting, and networking.

Question 10

Incremental innovations

Accepted Answer

Incremental innovations enhance existing practices or make small improvements in products and processes. They may represent evolutionary applications within existing paradigms of earlier, more radical innovations.

Question 11

According to the characterization of innovations by Professor Clayton Christensen,the rise of the smartphone was ________ innovation rather than ________ innovation.

Accepted Answer

Harvard Business School Professor Clayton M. Christensen identified another useful approach to characterize types of innovations. Christensen draws a distinction between sustaining and disruptive innovations. Sustaining innovations are those that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins. Such innovations may include either incremental or radical innovations. For example, smartphone technology was a breakthrough innovation that transformed how people access the Internet. But rather than disrupting the business of Google and Facebook, the rise of the smartphone offered these service providers new opportunities to extend their reach into user lives.

Question 12

MiO,brought the Kraft Heinz Company many new awards including the 2011 Walmart Innovation of the Year Award and the 2012 Gold Medal Edison Innovation Award.What kind of innovation did MiO represent?

Accepted Answer

Kraft Heinz called MiO one of the most successful new product introductions in its history. Kraft also received a number of innovation awards with MiO, including a Walmart Innovation of the Year Award in 2011 and a Gold Medal Edison Innovation Award in 2012. With the commercial and critical success of MiO, it is not surprising to see a number of imitative products, such as Dasani Drops and Powerade Drops by Coke, Hawaiian Punch and Crush Drops from Dr. Pepper, and Aquafina Splash from Pepsi. But MiO continues to be the market leader.

Question 13

The innovation dilemma known as "building capabilities versus collaborating" refers to

Accepted Answer

Innovation projects often require new sets of skills. The decision to build capabilities versus collaborating with others means that firms can seek help from other departments or partner with other companies that bring resources and experience as well as share costs of development.

Question 14

After witnessing the emergence of eBay and Amazon,Marc Benioff questioned why computer software was still sold in boxes rather than leased with a subscription and downloaded through the Internet.This was the genesis of Salesforce.com,a firm with over 6.7 billion USD in sales in 2016.This is an example of which innovator DNA trait?

Accepted Answer

This is an example of the questioning trait. Innovators constantly ask questions that challenge common wisdom. They ask, "Why not?" or "What if?" rather than accept the status quo. This gets others around them to challenge the assumptions that limit the possible range of actions the firm can take.

Question 15

New technology is an important source of new ideas because it

Accepted Answer

Among the most important sources of new ideas is new technology. Technology creates new possibilities. Technology provides the raw material that firms use to make innovative products and services.

Question 16

What kind of innovation do Hulu,Amazon Prime Video,and Airbnb represent?

Accepted Answer

Disruptive innovations are those that overturn markets by providing an altogether new approach to meeting customer needs. The features of a disruptive innovation make it somewhat counterintuitive. Disruptive innovations:(1) Are technologically simpler and less sophisticated than currently available products or services; (2) Appeal to less demanding customers who are seeking more convenient, less expensive solutions; and (3) Take time to take effect and only become disruptive once they have taken root in a new market or low-end part of an existing market. Hulu and Amazon Prime Video have disrupted established cable and satellite systems by providing a more limited but more efficient distribution system for entertainment content. Sharing services in short-term housing, such as Airbnb, are offering a disruptive innovation that is a strong challenge to the hotel industry.

Question 17

Innovations that extend sales in an existing market,usually by enabling new products or services to be sold at higher margins,are known as ________ innovations.

Accepted Answer

Sustaining innovations are those that extend sales in an existing market, usually by enabling new products or services to be sold at higher margins.

Question 18

________ produce fundamental changes that can transform a company or even revolutionize an industry,while ________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.

Accepted Answer

Radical innovations tend to be highly disruptive and can transform a company or even revolutionize a whole industry. Incremental innovations enhance existing practices or make small improvements in products and processes. They may represent evolutionary applications within existing paradigms of earlier, more radical innovations.

Question 19

________ refers to efforts to create designs and applications of technology to develop new products,while ________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations.

Accepted Answer

Product innovation refers to efforts to create product designs and applications of technology to develop new products for end users. Process innovation, by contrast, is typically associated with improving the efficiency of an organizational process, especially manufacturing systems and operations.

Question 20

The innovation dilemma known as "seeds versus weeds" refers to

Accepted Answer

Most companies have an abundance of innovative ideas. They must decide which of these is most likely to bear fruit (seeds) and which should be cast aside (weeds).

Quiz 12: Managing Innovation and Fostering Corporate Entrepreneurship