Question 1

________ occurs within a larger organizational framework of innovation to support an organization's need to reinvent its products and services.

Accepted Answer

Strategic IT experimentation occurs within a larger organizational framework of innovation, aiming to support an organization's need to reinvent its products and services by exploring new technologies and approaches.

Question 2

Which of the following activities are considered an appropriate use for venture funds?

Accepted Answer

All of the activities listed (A-D) are appropriate uses for venture funds. Venture capital firms typically invest in startups or early-stage companies with high growth potential, and these activities can help these companies achieve that potential. Making greater use of innovation resources, focusing on new business models, exploring new or disruptive technologies, and penetrating new markets can all help a company differentiate itself from competitors and achieve success in the long term.

Question 3

________ are inherent risky in nature and often involve a multiyear bet within a poorly defined industry that has no clear formula for making a profit.

Accepted Answer

Strategic experiments are inherently risky because they involve testing new ideas or approaches in uncertain and poorly defined industries, often without a clear path to profitability.

Question 4

Disruptive innovation can be devastating to an organization and is also often referred to as:

Accepted Answer

Disruptive innovation is often referred to as "the innovator's dilemma" because it presents a difficult choice for established companies. They can either continue to pursue their current strategies and risk being overtaken by smaller, more agile competitors, or they can invest in new and untested technologies that may not have a clear path to profitability. This dilemma can be especially challenging for companies that have built their success on existing products or services, as disruptive innovation may require them to fundamentally rethink their business model.

Question 5

________ is defined as frequent and relentless change within the organization.

Accepted Answer

Frequent and relentless change within the organization is best described as continuous change. This type of change involves constantly adapting and improving processes and practices to stay relevant and competitive in a rapidly evolving business environment. Examples of continuous change may include implementing new technologies or software upgrades, streamlining workflows, or improving customer service procedures.

Question 6

________ change is frequent, relentless, and often endemic to the organization.

Accepted Answer

The term "continuous change" refers to the ongoing process of incremental improvements and adjustments within an organization. This type of change is characterized by its regularity and consistency, and is often seen in companies committed to constant improvement and innovation.

Question 7

IT experimentation occurs when businesses experiment with new products and services that are predominantly:

Accepted Answer

IT experimentation refers to experimenting with new products and services that are predominantly technology-enabled. This can include experimenting with new software or hardware solutions, testing out new applications or systems, or exploring how new technologies can be used to improve business processes or customer experiences. While these experiments may involve some element of competition differentiation and may be experimental in nature, the key factor is that they rely heavily on technology for their development and execution.

Question 8

The type of innovation that targets non-customers and delivers a product or service that fundamentally differs from the current product portfolio is known as:

Accepted Answer

Disruptive innovation targets non-customers and offers a fundamentally different product or service from the current portfolio, often starting at the low end of the market and gradually moving up. Sustaining innovation improves upon existing products and serves current customers, while technological innovation focuses on new technologies and their application. Industry innovation refers to changes in the structure or competitive dynamics of an industry, and environmental innovation addresses environmental challenges.

Question 9

When organizations commit resources, build infrastructure, articulate procedures, and provide incentives all in an effort to instill a culture of innovation, this collection of activities is called the ________.

Accepted Answer

The collection of activities such as committing resources, building infrastructure, articulating procedures, and providing incentives to instill a culture of innovation is referred to as the "Innovation process." This encompasses the systematic approach an organization takes to foster innovation.

Question 10

The ________ is part of the innovation process.

Accepted Answer

The strategic experiment is an essential part of the innovation process as it allows for testing and validation of new ideas or concepts. It enables companies to identify potential risks and opportunities before committing significant resources to develop a new product or service. The other options (technology framework, technology roadmap, and technology platform) are also essential components of the innovation process, but they are not as directly related to experimentation and validation.

Question 11

To be successful, the disruptive innovation must meet two basic requirements:

Accepted Answer

The two basic requirements for a successful disruptive innovation are creating mechanisms to capture value (such as through new business models) and creating customer value (by offering new or improved products/services). Therefore, option C is the correct answer as it includes both of these requirements. Option A only mentions creating customer and business value, but does not address the need for mechanisms to capture value. Option B mentions mechanisms to capture value, but does not mention the importance of creating customer value. Option D is incorrect as there are clear requirements for a successful disruptive innovation.

Question 12

Which of the following are ways business can avoid failure when transitioning an initiative from strategic experiment to business innovation?

Accepted Answer

Business can avoid failure when transitioning an initiative from strategic experiment to business innovation by focusing on achievable targets and being cautious with leading-edge technology. Rushing positive results as an innovation to market may lead to potential failures and risks.

Question 13

Which of the following are the dominant forms of organizational change?

Accepted Answer

According to the punctuated equilibrium model, organizational change occurs in a pattern of long periods of stability (equilibrium) punctuated by short periods of radical, discontinuous change. Therefore, the dominant forms of organizational change are continuous and punctuated equilibrium change.

Question 14

________ assumes that long periods of small, incremental change are interrupted by brief periods of discontinuous, radical change.

Accepted Answer

Punctuated equilibrium theory, developed by Stephen Jay Gould and Niles Eldredge in 1972, posits that species experience long periods of relative stability interrupted by brief periods of rapid change or speciation events. This theory applies to biological evolution, but it has also been applied to organizational change, social change, and technological change.

Question 15

________ leaves organizations in their comfort zone of established markets, known customers, and realizable business models.

Accepted Answer

Sustaining innovation focuses on improving existing products or services for current customers within established markets, thus keeping organizations within their comfort zone without fundamentally changing their business model or targeting new markets.

Question 16

The type of innovation that improves an existing product or enhances an existing service for an existing customer is known as:

Accepted Answer

Sustaining innovation is focused on improving or enhancing a product or service for an existing customer base. This type of innovation typically involves incremental improvements and adjustments to the existing product or service, rather than major breakthroughs or revolutionary changes.

Question 17

The role of IT is bifurcating into separate roles:

Accepted Answer

The role of IT is bifurcating into two distinct paths: commodity service, which includes standardized IT services that can be easily outsourced or managed with minimal differentiation, and competitive differentiation, where IT provides a unique advantage or capability that sets a company apart from its competitors.

Question 18

________ invokes the notion of testing or trying something new.

Accepted Answer

Experimentation involves the act of testing or trying something new in order to see the results or outcome. Innovating and changing can involve experimentation, but they are broader concepts that can include other activities as well. Learning is also related, but it is more focused on acquiring knowledge or skills rather than testing something new.

Question 19

There are two types of business innovation:

Accepted Answer

Sustaining innovation refers to improving existing products or services, whereas disruptive innovation involves creating new markets or fundamentally changing existing ones. Industry innovation is not a recognized type of innovation, and technological and environmental innovation do not cover the full spectrum of business innovation.

Question 20

________ are enabling conditions offered by IT to support innovation.

Accepted Answer

Platforms are enabling conditions offered by IT to support innovation. They help to streamline processes and provide access to resources and tools that can help with ideation and experimentation. Innovation processes, technology roadmaps, and strategic experiments are all important components of innovation, but they are not necessarily enabled by IT.

Quiz 10: Strategic Experimentation With IT