Deck 17: Managing Technology and Innovation

Question 1

A lack of enthusiasm for a new product among the technology adopters called innovators can be a sign that the new technology has serious problems.

Answer 1

True

Question 2

Bureaucracy,by its very nature,helps innovation to thrive.

Answer 2

False

Question 3

________ is a change in method or technology that is a useful departure from previous ways of doing things.

A)Innovation
B)Integration
C)Reinforcement
D)Diffusion
E)Arbitration

Answer 3

A

Question 4

If a product champion lacks the power and financial resources to initiate innovations alone,he or she seeks sponsorship from an executive champion.

Question 5

Which of the following groups of adopters of a new technology includes well-respected opinion leaders or organizations to which others look for ideas and up-to-date technological information?

A)early adopters
B)the late majority
C)innovators
D)the early majority
E)laggards

Question 6

Development projects are focused on marketing existing products or processes through mass media and social media.

Question 7

Unlike those who seek technology leadership,followers can gain a significant learning advantage that can be sustainable.

Question 8

One approach for measuring the competitive value of technologies is to categorize them as emerging,pacing,key,and base.

Question 9

If a new technology is theoretically possible but economically impractical,the technology will probably not emerge.

Question 10

In the technology life cycle,which of the following follows the initial recognition of a need coupled with potential to satisfy that need through science?

A)A dominant design emerges after early problems are resolved.
B)Competitors experiment with operational characteristics to meet consumer needs.
C)Knowledge and ideas are brought together and developed.
D)The product,process,or service declines in usefulness or practicality.
E)Managers seek advantages through process efficiencies and cost competitiveness.

Question 11

Early adopters of new technologies tend to be

A)isolated and highly conservative in their views.
B)extremely suspicious of innovation and change.
C)less educated and unable to cope with uncertainty and abstraction.
D)critical to the success of a new technology.
E)the most adventurous and willing to take risks.

Question 12

Broadly speaking,________ can be thought of as the commercialization of science.

A)invention
B)innovation
C)development
D)technology
E)application

Question 13

Even firms that are not technology oriented must pay attention to changing technology.

Question 14

Oxy Systems Corp.was the first company to utilize a new device developed by Symbol Developers Inc.that enabled Oxy to locate previously undetected underground hot springs that could be tapped as geothermal heating sources.Oxy Systems tested the device and provided a testimonial to other organizations about the product.However,the other organizations were hesitant and decided to wait until the product was proven reliable.In this case,Oxy Systems can be classified as

A)an innovator.
B)a late adopter.
C)part of the early majority.
D)part of the late majority.
E)a laggard.

Question 15

Product innovation is a change in the

A)way the outputs of an organization are produced.
B)way the organization creates and delivers value.
C)outputs the organization produces.
D)value of the product alone.
E)product focus of the organization.

Question 16

Common ways of acquiring new technology include internal development,purchase,and licensing.

Question 17

Which of the following groups is most likely to pay a premium for the latest and newest technology or product to come along and to champion it if it meets with their approval?

A)innovators
B)the late majority
C)the early majority
D)early adopters
E)laggards

Question 18

The invention life cycle is a predictable pattern in which technological innovation follows from its inception and development to market saturation and replacement.

Question 19

In the context of managing,________ is a new way of working that creates value.

A)invention
B)innovation
C)development
D)technology
E)application

Question 20

Darius is designing a new type of self-driving automobile guidance system.He explains to Janelle,his supervisor,that it has far more accurate sensing capabilities than current models,uses current satellite technology used in available guidance systems,can readily be implanted in experimental cars at his company's test facility,incorporates five times as many features and complicated circuitry as current models,and can be easily manufactured by tweaking existing production machinery.Janelle says it is a good start,but she has some concerns.Why is Janelle most likely concerned?

A)The new model lacks a great advantage over its predecessor.
B)Darius's model is incompatible with existing infrastructures and processes.
C)Darius's model has must greater complexity than its predecessor.
D)Darius's model can only be tried or tested easily with significant cost.
E)The new model lacks the ability to be copied easily.

Question 21

An innovation will spread faster if it

A)is highly similar to its predecessor.
B)is compatible with existing systems and procedures.
C)has more rather than less complexity.
D)requires a significant commitment to try or test.
E)is difficult to replicate or observe.

Question 22

The leaders of Plastishield Inc. ,a company that creates lightweight,durable plastic films to protect surfaces,want to build a reputation that makes them superior to other manufacturers of similar plastic film products.What action will help Plastishield effectively build their reputation to a higher level than everyone else?

A)leaving their successful,lightweight plastic films unchanged
B)establishing low switching costs for repeat customers
C)creating generic versions of plastics products their competitors already sell
D)obtaining patents for their new plastics products and procedures
E)saving money by dedicating less of the budget to research and development

Question 23

The situation in which a simple application is adopted at the lower end of the market and then swiftly takes over the market is referred to as

A)disruptive innovation.
B)contract development.
C)upward innovation.
D)strategic maneuvering.
E)predatory invention.

Question 24

The key factor that makes technology leadership attractive for some companies is the potential for

A)lower infrastructure costs.
B)conflict resolution.
C)higher profits.
D)lower market development costs.
E)lower risks.

Question 25

Which statement about the technology life cycle is true?

A)A technology life cycle can be made up of many individual product life cycles.
B)The technology life cycle is represented by a V-shaped pattern.
C)The developments in a technology life cycle must always be big innovations.
D)The technology life cycle starts with a small change followed by increasingly larger ones.
E)Over the span of the technology life cycle,the technology gets more difficult to use.

Question 26

Technology followership can be used to support

A)only a low-cost strategy.
B)only a differentiation strategy.
C)both low-cost and differentiation strategies.
D)scale economies but not economies of scope.
E)economies of scope but not scale economies.

Question 27

Technological innovation can support a ________ strategy,in which an advantage comes from having a unique good or service for which customers are willing to pay a premium price.

A)concentration
B)vertical integration
C)low-cost
D)diversification
E)differentiation

Question 28

Cutting-Edge Carvers Inc.is a recently established online vendor that sells custom luxury products made from wood on automated lathes.Before opening for business,the company studied the problems that companies using a similar technology had experienced.Cutting-Edge Carvers was therefore able to avoid their costly mistakes.Cutting-Edge Carvers would be an example of a(n)

A)corporate entrepreneur.
B)product champion.
C)executive champion.
D)intrapreneur.
E)technology follower.

Question 29

Who among the following adopters of a new technology are extremely suspicious of innovation and change?

A)laggards
B)early adopters
C)innovators
D)the early majority
E)the early minority

Question 30

Radical Returns Inc. ,a company that prepares individual tax returns,has finally agreed to utilize the IRS system that enables returns to be transmitted electronically rather than through mail.Almost every other firm in the United States is utilizing the system because it has been proven reliable.The company has accepted the new technology only after a number of threats of account withdrawal from key customers.For this reason,the company would be classified as

A)an innovator.
B)an early adopter.
C)part of the early majority.
D)part of the late majority.
E)part of the early minority.

Question 31

Foxtrot Processing Corp.uses a new technology that allows it to produce standard goods in an economical way.In contrast,its competitors strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price.In this case,Foxtrot Processing has an advantage over its competitors because it has adopted a ________ strategy.

A)vertical integration
B)differentiation
C)low-cost
D)premium pricing
E)predatory pricing

Question 32

Of the adopters of new technologies,the members of the early majority

A)are deliberate and take longer to decide to use something new.
B)include organizations to which others look for leadership.
C)tend to be isolated and highly conservative.
D)are critical to the success of a new technology.
E)tend to be the most adventurous and willing to take risks.

Question 33

Adopters of new technologies who are classified as ________ are typically adventurous and willing to take risks.

A)innovators
B)early adopters
C)the early majority
D)the late majority
E)laggards

Question 34

Which of the following is a disadvantage of technology leadership?

A)lower profit margins
B)reduced efficiency
C)loss of best market niches
D)infrastructure costs
E)establishment of entry barriers

Question 35

Which of the following is an advantage of technology leadership?

A)There is little risk involved.
B)The infrastructure cost is low.
C)There is little or no competition.
D)There is no need to develop complementary products.
E)The market development cost is low.

Question 36

Zoe's company is considering adopting a new information technology.Because the information technology managers of the company are not yet familiar with the technology,they would most likely consult with someone from which of the following groups to help determine the suitability of technology?

A)innovators
B)early adopters
C)the early majority
D)the late majority
E)laggards

Question 37

Who among the following adopters of a new technology are more skeptical of technological change and approach innovation with great caution?

A)the late majority
B)the early majority
C)the late minority
D)the early minority
E)early adopters

Question 38

Which of the following is a first-mover advantage for a technology innovator?

A)being able to charge a premium price
B)letting someone else work out all the bugs
C)having an infrastructure ready to support the technology
D)being able to take advantage of complementary products
E)having a ready-made customer base

Question 39

Lowland Corp.devised a Wi-Fi based home security system that was not very popular initially.However,a few years later,the technology was in high demand in the market.This is an example of

A)disruptive innovation.
B)contracted development.
C)upward innovation.
D)a product champion.
E)technology followership.

Question 40

Which of the following is a disadvantage of technology leadership?

A)lower profit margins
B)intense competition
C)loss of brand image
D)the need to educate buyers
E)the establishment of entry barriers

Question 41

Although competitors understandably are reluctant to share their secrets,information trading for ________ is not uncommon and can prove highly valuable.

A)vertical integration
B)technological followership
C)corporate espionage
D)benchmarking
E)gradual diffusion

Question 42

Blue Moon Innovations has developed a grammar-checking program that is better able to account for the idiosyncrasies of the way humans use language.Publishers have found the program effective,but it still has not caught on within the business community.What type of technology is this?

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 43

Katrina is part of a committee that must decide whether the company should adopt a new technology.Katrina's task is to compare the proposed technology to the technology that other companies in her industry use.This task is known as

A)scanning.
B)corporate espionage.
C)auditing.
D)a make-or-buy decision.
E)benchmarking.

Question 44

________ technologies are those that are commonplace in the industry;everyone must have them to be able to operate.

A)Base
B)Emerging
C)Strategic
D)Key
E)Pacing

Question 45

A ________ helps clarify the key technologies upon which an organization depends,often in terms of their competitive value.

A)product champion
B)technology audit
C)situational analysis
D)technical innovator
E)technological record

Question 46

Which of the following categories refers to technologies that are still under development and thus unproved?

A)base technologies
B)emerging technologies
C)key technologies
D)initial technologies
E)pacing technologies

Question 47

Chirp is a small smartphone company that has developed an innovative security system for its phones.The technology has yet to prove its full value,but if it catches on,it may change the competitive landscape of the smartphone industry.What type of technology is this?

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 48

In assessing external technological trends,benchmarking and scanning are similar in that both are concerned with

A)what is being done currently.
B)what can be done and is being developed.
C)key technologies.
D)pacing technologies.
E)obtaining competitor's secrets.

Question 49

The technique of scanning in assessing external technological trends focuses on

A)improvising key base technologies.
B)current activities and technologies.
C)what can be done and what is being developed.
D)comparing the competitive advantages of two companies.
E)clarifying the technologies on which an organization depends.

Question 50

Which of the following will best help an organization decide if the time is right to adopt a new technology?

A)calculating liability ratios
B)calculating leverage ratios
C)balancing the year-end budget
D)doing a cost-benefit analysis
E)taking an employee survey

Question 51

Volume controls on an MP3 player are an example of a(n)________ technology.

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 52

The process of comparing an organization's practices and technologies to those of other companies is known as

A)benchmarking.
B)scanning.
C)situational analysis.
D)technological auditing.
E)strategic maneuvering.

Question 53

Base technologies are those that

A)are not used by everyone.
B)are commonplace in the industry.
C)provide significant competitive advantage.
D)have not been proved useful.
E)are not known to everyone.

Question 54

________ technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.

A)Base
B)Emerging
C)Key
D)Strategic
E)Pacing

Question 55

________ technologies have proved effective,but they also provide a strategic advantage because not everyone uses them.

A)Base
B)Emerging
C)Key
D)Elevated
E)Pacing

Question 56

Charmed Power Inc.is working on a fast battery-recharging system that is still under development and has yet to be approved.Charmed Power's product is an example of a(n)________ technology.

A)base
B)key
C)emerging
D)improved
E)pacing

Question 57

Planetary Systems is developing a gas vapor detection system that will be able to tell when a fuel system is in the early stages of becoming inefficient in a manner needing adjustment and will then sound an alarm to notify the driver.The system is still in the trial stages and has not been proven to be effective.What type of technology is this?

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 58

Bridget has to decide whether it is the right time to adopt a new technology for her department.Besides considering the potential benefits of the new technology,which of the following factors should have the most influence on her decision?

A)the prestige connected with using the technology
B)the likelihood of a better technology becoming available
C)the extent to which the technology will enhance her professional reputation
D)the technology skills of the people in her department
E)the entry barriers to using the technology

Question 59

Nightingale Inc.has introduced a voice recognition machine system that enables machines to recognize a worker's voice and respond to commands.The company is yet to prove the full value of this product.However,organizations that have used the product appropriately have found that it efficiently speeds up various processes.Nightingale Inc.'s voice recognition machine system is an example of a(n)________ technology.

A)base
B)emerging
C)elevated
D)strategic
E)pacing

Question 60

Todd is the owner of TodVac,a producer of high performance commercial vacuum cleaners based in Texas.Todd knows that some companies use technology that has been proven over the years to efficiently create components very similar to the components in his vacuums.Unfortunately,Todd has never seen this technology and does not have a clue how it works.How should Todd go about learning how to improve his production with time-tested technology?

A)read journals to see how science is being applied to vacuum manufacturing
B)attend seminars on new technology available to manufacturers like TodVac
C)tour an Asian factory that uses this technology but does not compete directly with TodVac
D)ask TodVac's main competitor to share their proprietary knowledge with him
E)hire a CIO to lead an development team to create better manufacturing processes

Question 61

________ is a factor that helps executives decide if there is a good financial incentive for attempting a technological innovation.

A)Technological feasibility
B)Market receptiveness
C)Economic viability
D)Organizational suitability
E)Competence development

Question 62

The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself is referred to as a

A)trade-off decision.
B)licensing decision.
C)make-or-buy decision.
D)SWOT analysis.
E)benchmark analysis.

Question 63

A hybrid ________ firm needs to stay technologically competitive but tends to allow others to demonstrate solid demand in new arenas before it responds.

A)defender
B)laggard
C)prospector
D)contingent
E)analyzer

Question 64

Time machines are a staple of science fiction novels and movies,but there are not any businesses trying to develop one.The main reason is the lack of

A)economic viability.
B)organizational suitability.
C)market receptiveness.
D)practical application.
E)technological feasibility.

Question 65

Answer Smart Inc.plans to make a new mobile phone that would use a retina scanner to unlock the phone.However,the company does not implement the plan as it realizes that the costs involved are too high.Which of the following factors while making a technology decision has Answer Smart Inc.taken into consideration?

A)economic viability
B)competence development
C)organizational suitability
D)market receptiveness
E)technological feasibility

Question 66

The exploding growth in piracy or fakery of patented pharmaceuticals,software,and other products has added new barriers to

A)economic viability.
B)organizational suitability.
C)market receptiveness.
D)competence development.
E)technological feasibility.

Question 67

Managers of Grilled Snacks,a fast-food restaurant chain,visited Spectacular Sandwiches,a competitor.Spectacular Sandwiches has a system in which waiters use a cell phone to text orders directly to the kitchen.The two companies made an arrangement by which Grilled Snacks adopted the ordering system and,in turn,Spectacular Sandwiches adopted a food-preparation technique devised by Grilled Snacks.This scenario is an example of

A)technology trading.
B)licensing.
C)contracted development.
D)internal development.
E)research partnership.

Question 68

________ firms' strategies are focused on deepening their capacity base through complementary technologies that extend rather than replace their current ones.

A)Defender
B)Laggard
C)Prospector
D)Contingent
E)Analyzer

Question 69

In most situations,the simplest,easiest,and most cost-effective way to acquire new technology is to

A)purchase it.
B)develop it internally.
C)license it for a fee.
D)use a research partnership.
E)purchase the technology owner.

Question 70

Vital Vision Corp.is looking for a simple and cost-effective way of acquiring a commercially available new technology for its present venture.Which of the following methods should the company first consider for the purpose?

A)licensing the technology
B)developing the technology internally
C)purchasing the technology
D)buying the technology owner
E)creating a research partnership

Question 71

For which of the following reasons might a firm choose to trade technology?

A)to facilitate first-mover advantages
B)to avoid development costs
C)to build barriers to entry
D)to partner with competitors
E)to create diseconomies of scope

Question 72

Linda has been asked to help her large company,Wave Breakers,obtain technology to allow outboard motors to run efficiently at all temperatures.Her company needs this technology immediately,but they also want to make sure they have full control of the technology.Currently only one company,Thermal Stroke,a small startup,has the technology Wave Breakers is seeking.What is Linda's best option for completing her task?

A)acquiring Thermal Stroke
B)licensing the technology from Thermal Stroke
C)developing the technology internally
D)contracting a company to create the technology
E)partnering with a competitor to develop the technology

Question 73

Which of the following is becoming increasingly common as a way for companies to gain access to new technologies while avoiding high development costs or financing?

A)contracted development
B)internal development
C)technology trading
D)research partnership
E)purchase

Question 74

For years,Tiger Corp.wanted to develop a face recognition system that clients could buy to improve their security systems.The managers of the company evaluated the product's market potential,economic viability,and anticipated capability development,which were all very strong.However,Tiger Corp.was unable to make a successful product.The key factor that the company failed to adequately assess in making technology decisions was the product's technological

A)reliability.
B)ambidexterity.
C)variability.
D)feasibility.
E)agility.

Question 75

Aeroquad Inc.is in the process of deciding whether to develop a new automatic guidance system for its quadcopters or to get it from another company that specializes in that area.This is an example of a

A)make-or-buy decision.
B)licensing decision.
C)trade-off decision.
D)SWOT analysis.
E)benchmark analysis.

Question 76

Selma has developed and patented a new process for recycling discarded tires.A multinational corporation has expressed an interest in buying her company in order to gain access to the technology and keep it exclusively for itself.Should Selma sell her company,the buyer will have acquired technology via

A)acquisition of the technology owner.
B)a joint venture.
C)a licensing agreement.
D)contracted development.
E)patent purchase.

Question 77

Whereas ________ focuses on key and perhaps some pacing technologies,________ seeks out pacing and emerging technologies.

A)scanning;auditing
B)auditing;scanning
C)benchmarking;auditing
D)scanning;benchmarking
E)benchmarking;scanning

Question 78

One advantage of developing technology within one's own company is the

A)optimal utilization of the company's resources.
B)cost effectiveness due to material innovations.
C)proprietary nature of the technology within the organization.
D)reduced requirement to hire additional staff.
E)ability to take plenty of time to develop a product right.

Question 79

Which of the following is the first consideration in developing a strategy around technological innovation?

A)organizational suitability
B)market potential
C)technological feasibility
D)economic viability
E)political barriers

Question 80

________ firms have cultures that are the most outward-looking and opportunistic in their approach to technological innovation.

A)Defender
B)Laggard
C)Prospector
D)Contingent
E)Analyzer