Question 1

Uncertainty increases during the life of an innovation project

Accepted Answer

Uncertainty typically decreases during the life of an innovation project as more information is gathered and decisions are made, reducing unknowns.

Question 2

Financial measures are the only way to judge innovation projects?

Accepted Answer

Innovation projects can also be judged by non-financial measures such as market impact, customer satisfaction, technological advancement, and contribution to knowledge, among others.

Question 3

Concept testing is:
A) An approach to explore innovation options with potential users to refine the project scope
B) A movement in modern art
C) A financial management tool to assess relative values of share portfolios

Accepted Answer

Concept testing is a process used in product development and marketing to understand potential users' reactions to a product idea before it is fully developed, helping to refine the project scope and design.

Question 4

Assembling and presenting a business case for an innovation only applies to entrepreneurial start-ups

Accepted Answer

Assembling and presenting a business case for an innovation is a critical step not only for entrepreneurial start-ups but also for established companies looking to innovate or introduce new products, services, or processes. It helps in assessing the viability, risks, and potential returns of the innovation.

Question 5

Portfolio management is:
A) A computer-based filing system.
B) A set of tools for assessing and comparing innovation projects.
C) A concept in engineering related to interlinked product features.
D) A financial evaluation tool.

Accepted Answer

Portfolio management involves assessing and comparing innovation projects to allocate resources effectively and maximize returns.

Question 6

Which of these can result from a lack of portfolio management?
A) No limits to the number of innovation projects taken on
B) Reluctance to 'kill' projects under development
C) High failure rates in terms of cost and time overruns
D) Too many low risk projects, lack of 'stretch'

Accepted Answer

The answer of Which of these can result from a...

Question 7

Which of the following is not important when choosing the most appropriate forecasting method?
A) Mathematical sophistication.
B) Rate of technological and market change.
C) The organization's planning horizon.
D) The resources available for forecasting.

Accepted Answer

Mathematical sophistication is not a primary factor in choosing the most appropriate forecasting method. The key considerations should focus on the specific needs of the organization, such as the rate of change in the market, the planning horizon, and the resources available for forecasting. These factors directly impact the relevance and applicability of the forecasting method to the organization's context, whereas the complexity of the mathematical approach does not inherently determine its suitability.

Question 8

Which of the following is not typically needed for a business plan:
A) Assessment of the market opportunity.
B) Barriers to entry and competitor analysis.
C) Identification and planning for key risks.
D) High-technology product or service.

Accepted Answer

A business plan does not necessarily require a high-technology product or service. It should include an assessment of the market opportunity, barriers to entry and competitor analysis, and identification and planning for key risks, regardless of the technology level of the product or service.

Question 9

Which of the following techniques is least effective for identifying radical innovations?
A) Market and customer segmentation.
B) Scenario planning.
C) Lead user involvement.
D) Focus groups.

Accepted Answer

The answer of Which of the following techniques is least...

Question 10

The innovation funnel is:
A) A portfolio approach to managing projects.
B) A framework for the increasing resource commitment/decreasing uncertainty relationship.
C) A type of forecasting method.
D) A software tool to assess risk and uncertainty.

Accepted Answer

The innovation funnel is a framework that represents the process of decreasing uncertainty while increasing resource commitment as ideas progress from conception to implementation. It helps organizations manage the development of new products or services by filtering out less viable options as they move through stages of development, thereby focusing resources on the most promising projects.

Quiz 4: Managing Uncertainty

Uncertainty increases during the life of an innovation project

Financial measures are the only way to judge innovation projects?

Concept testing is:

Assembling and presenting a business case for an innovation only applies to entrepreneurial start-ups

Portfolio management is:

Which of these can result from a lack of portfolio management?

Which of the following is not important when choosing the most appropriate forecasting method?

Which of the following is not typically needed for a business plan:

Which of the following techniques is least effective for identifying radical innovations?

The innovation funnel is: