Question 1

________ innovation pulls new products and services from settings,where they are often created under pricing constraints,and pushes them into use elsewhere.

Accepted Answer

Reverse innovation refers to creating a product or service in a lower-cost setting and then introducing it to a higher-income market. This allows companies to innovate under constraints, which can often lead to more affordable or efficient solutions that can then be marketed to a wider consumer base.

Question 2

A group of employees of Jonas Inc.,a software firm,were analyzing the practicality and feasibility of a software program by releasing a few samples of the program on the Internet for a month.Which of the following steps of the innovation process were the employees engaging themselves in?

Accepted Answer

The employees are engaging in the experimenting phase of the innovation process by releasing the software samples on the Internet for a month, in order to test its practicality and feasibility.

Question 3

Jade Inc.,a photography firm,entered into other activities such as cinematography,advertisement creations,and short film making,to make more money for the firm.This implies that Jade Inc.had engaged in ________ innovation.

Accepted Answer

Jade Inc. has not just innovated its product or process. It has also innovated its business model by introducing new revenue streams and expanding its scope of services beyond just photography.

Question 4

Which of the following steps in the innovation process consists of implementing what has been learned and commercializing new products or services?

Accepted Answer

Scaling is the step in the innovation process where the focus turns from experimentation and testing to commercialization and implementing what has been learned to a larger scale. This involves ramping up production, refining processes, and launching new products or services to the market.

Question 5

Which of the following creates products or services that become so widely used that they largely replace prior practices and competitors?

Accepted Answer

Disruptive innovation creates products or services that significantly alter the way a market operates by replacing traditional products or services.

Question 6

Foster Inc.created a new line of cameras that work on solar energy.These solar cameras reduced the demand for digital cameras and gradually replaced the use of digital cameras and ended competition.Which of the following is prominent in this instance?

Accepted Answer

The scenario describes disruptive innovation, which is the introduction of a new product or service that disrupts the existing market and replaces traditional products or services. The solar cameras created by Foster Inc. disrupted the digital camera market and eventually replaced it, thus fulfilling the characteristics of disruptive innovation.

Question 7

Which of the following steps in the innovation process involves thinking about new possibilities?

Accepted Answer

Imagining involves thinking outside the box and considering new and creative possibilities, whereas the other steps in the innovation process (experimenting, assessing, designing, scaling) are more focused on evaluating and refining potential ideas.

Question 8

Which of the following concepts got its start as global firms moved away from viewing innovation as a "home market" activity that creates new products and services for distribution to "foreign markets"?

Accepted Answer

Reverse innovation is the concept that emerged as global firms realized the need for innovation in developing countries and emerging markets. It focuses on creating new products and services in these markets and then taking them back to the firm's home market or other developed markets. This concept differs from the traditional approach where innovation starts in the home market and then gets distributed to foreign markets. Disruptive innovation, incremental innovation, product innovation, and social business innovation are not directly related to this shift in thinking of global firms.

Question 9

Glory Pvt.Ltd.specializes in preparing eco-friendly products out of solid waste,old newspapers,and waste plastic.The firm employs individuals belonging to the weaker economic sections of the city.Glory Pvt.Ltd.is engaged in ________ innovation.

Accepted Answer

Glory Pvt.Ltd. is engaged in social business innovation as they are not only producing eco-friendly products, but also providing employment opportunities to individuals belonging to weaker economic sections of the city.

Question 10

Which of the following is true of sustainability?

Accepted Answer

Sustainability refers to the practice of living and working in ways that protect the rights of both present and future generations. This includes consideration for environmental, social, and economic impacts. It is a commitment to ensuring that resources are used in a responsible and equitable way.

Question 11

Which of the following is the final step of the wheel of innovation?

Accepted Answer

Scaling is the final step of the wheel of innovation where the innovation is brought to a larger audience and is fully implemented.

Question 12

Indigo Inc.,a firm that specializes in animation,released its latest patented animation software in the market to increase its profits by improving sales.Which of the following steps of the innovation process was executed by Indigo Inc.?

Accepted Answer

Indigo Inc. executed the "Scaling" step by releasing its patented animation software to the market to increase profits through improved sales.

Question 13

Starship Inc.,an automobile manufacturer,developed a new car model.The firm worked on identifying the strengths and weaknesses of the new model,the costs that would be incurred in its manufacture,and its target markets.Which of the following steps of the innovation process was the firm involved in?

Accepted Answer

The firm was involved in assessing the new car model by identifying its strengths and weaknesses, costs and target markets. This step is a part of the evaluation and feasibility stage of the innovation process.

Question 14

A business model innovation results in:

Accepted Answer

A business model innovation focuses on creating new ways for firms to generate revenue and make money, often through the introduction of new products, services, and technologies. While better processes and improved goods may be part of the innovation, the primary goal is to create a new revenue stream or increase profitability.

Question 15

Micro-credit lending is an example of ________ innovation.

Accepted Answer

Micro-credit lending is a form of social business innovation, as it addresses a social issue (lack of access to credit for low-income individuals) in a sustainable and financially viable manner. It is not reverse innovation, as it is not a model developed in a low-income country and then transferred to a high-income country. It is not disruptive innovation, as it does not fundamentally transform an industry or market. It is not environmental or green innovation, as it is not primarily focused on environmental sustainability.

Question 16

Which of the following is an example of a business model innovation?

Accepted Answer

Introducing the concept of "paying for extras" in free online games is an example of a business model innovation as it creates a new revenue stream by offering additional services or products to customers beyond the initial offering. This is different from simply introducing a new product or service. The other options listed all involve introducing new products or services, but not necessarily a new business model.

Question 17

Which of the following is true of reverse innovation?

Accepted Answer

Reverse innovation refers to recognizing innovations that originate in diverse settings or locations and then incorporating them into products or services for other markets. Option A is incorrect as reverse innovation involves recognizing innovations from lower levels or diverse settings rather than higher organizational levels. Option B is incorrect as it focuses on identifying innovations in new or emerging markets. Option D is incorrect as it can involve a lack of complete information, but it is not a defining characteristic. Option E is incorrect as it is a general principle of innovation management, not specific to reverse innovation.

Question 18

The process of using environmental resources to support societal needs today while also preserving and protecting them for future generations is referred to as ________.

Accepted Answer

Sustainable development is the process of meeting human needs while also preserving and protecting the environment for future generations. It's about balancing economic, social, and environmental considerations and finding ways to use resources more efficiently and responsibly. The other choices are related to specific aspects of environmental or social issues but do not encompass the concept of sustainable development.

Question 19

Which of the following is an example of a social business innovation?

Accepted Answer

A social business innovation is an innovation that addresses a social problem and is financially sustainable. Option A is an example of a social business innovation as it addresses a social problem of maintaining cleanliness in the cities and is financially sustainable as it can charge for its services. Option B is not a social business innovation as it is focused on customization and not on solving a social problem. Option C is not a social business innovation as it is focused on convenience and not on solving a social problem. Option D is not a social business innovation as it is focused on improving customer service and not on solving a social problem. Option E is not a social business innovation as it is focused on improving a process in the entertainment industry and not on solving a social problem.

Question 20

The commitment to protect the rights of present and future generations as co-stakeholders of present-day natural resources is termed as ________.

Accepted Answer

Sustainability refers to the commitment to protect the rights of present and future generations as co-stakeholders of present-day natural resources. Disruptive innovation refers to the creation of new markets and value networks that eventually disrupt existing markets. Environmental uncertainty refers to the unpredictability of environmental changes and their impacts on business operations. Reverse innovation refers to the process of innovating in emerging markets and then scaling those innovations to developed markets. Scaling refers to the process of expanding a business or program in a way that maintains or improves its effectiveness.

Quiz 4: Environment, innovation, and Sustainability