Question 1

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

Networking across functions and organizations is most directly related to the innovative process as it allows managers to gather diverse ideas and perspectives, identify new opportunities, and build partnerships that can lead to innovation. Writing down product goals regularly and motivating the team to work longer hours may be important for the implementation of innovation, but they do not directly contribute to the generation of new ideas. Never sleeping over five hours at a time may affect productivity and creativity negatively, rather than positively.

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

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 developmore creative and higher potential innovations?

Accepted Answer

The four patterns of action managers should develop are questioning, observing, experimenting, and networking, according to the given information about creative intelligence. Option C includes all of these four patterns. Option A includes cataloging instead of experimenting, and option D includes cataloging instead of integrating, which are not mentioned as patterns of action needed for developing creative and higher potential innovations.

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

New technology is an important source of new ideas because it

Accepted Answer

New technology provides the raw material or tools that firms need to create and develop innovative products and services. It can lead to the discovery of new ideas and solutions that were previously not possible.

Question 6

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

Marc Benioff's questioning of the traditional method of selling software in boxes led to the creation of a new business model for Salesforce.com. This demonstrates the innovator DNA trait of questioning the status quo and challenging traditional ways of doing things.

Question 7

Radical innovations

Accepted Answer

Radical innovations often occur because of technological changes, such as the invention of the internet, the personal computer, and smartphones. These innovations can disrupt existing markets and lead to significant changes in consumer behavior, but they do not necessarily result in quick profits. The process of developing and commercializing radical innovations can be expensive and time-consuming. Radical innovations also often apply simultaneously to products and processes, but they are not necessarily a form of contentious innovation.

Question 8

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 focus on enhancing the performance or features of existing products or services, leading to increased sales and higher margins. This type of innovation is aimed at satisfying the demands of existing customers and maintaining a strong position in the market, rather than disrupting it. Radical innovations and disruptive innovations, on the other hand, typically introduce new products or services that fundamentally change the market and may require a shift in customer behavior or preferences. Technology innovations can fall under any of these categories, depending on the specifics of the innovation.

Question 9

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. This means that innovation is not simply about disrupting or changing things, but rather about using new knowledge and ideas to create transformative improvements.

Question 10

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 locatehard-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

The ability to associate different ideas and concepts is the innovator DNA trait demonstrated by Pierre Omidyar in seeing the opportunity for eBay through his fascination with market efficiency and his fiancée's search for Pez dispensers.

Question 11

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

MiO represented product innovation as it was a new and unique liquid water enhancer that allowed consumers to customize the flavor of their water.

Question 12

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 13

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

Accepted Answer

Hulu, Amazon Prime Video, and Airbnb represent disruptive innovation because they have introduced new business models that have disrupted established industries and fundamentally changed the way consumers behave. Hulu and Amazon Prime Video have disrupted the traditional cable and satellite TV business by offering streaming video services, while Airbnb has disrupted the hotel industry by allowing homeowners to rent out their properties directly to travelers. These innovations have transformed their respective industries and created new markets.

Question 14

Incremental innovations

Accepted Answer

Incremental innovations are usually small improvements in existing products or processes, rather than major technological transitions. They may not always be patentable, as they may not meet the criteria for patentability. While they may not be as disruptive as breakthrough innovations, they can still lead to increased efficiency and competitiveness for companies that implement them.

Question 15

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

Accepted Answer

Disruptive innovations are typically less sophisticated technologically and appeal to less demanding customers. They often start in a new market or the low-end of an existing market and offer a less expensive solution for meeting a need. Therefore, option A is not characteristic of a disruptive innovation.

Question 16

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

Accepted Answer

The innovation dilemma known as "seeds versus weeds" refers to the decision of choosing which innovative idea to invest in and pursue. The choice is between the "seeds" or the innovative ideas with potential for significant growth and profit and the "weeds" or ideas that are unlikely to yield substantial returns. This dilemma often arises when organizations have limited resources and must allocate them efficiently. Therefore, the best choice would be D, choosing to pursue investment in one innovative idea over another.

Question 17

________ 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 the creation of new products, while process innovation refers to improving the operational systems within the organization. Therefore, C is the correct answer. A refers to the level of innovation, while B and D have inaccurate definitions.

Question 18

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 19

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

Accepted Answer

The innovation dilemma of building capabilities versus collaborating refers to the decision of whether to develop innovation skills internally or partner with qualified outsiders. This choice is critical to the success of innovation efforts because it determines where innovation capabilities will be sourced from and how innovation will be managed within the organization. Building skills internally requires significant investment in training, tools, and resources, while partnering with qualified outsiders requires trust, communication, and a willingness to share knowledge and expertise. Ultimately, the choice between building capabilities versus collaborating depends on the specific innovation challenge, available resources, and organizational strategy.

Question 20

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

Quiz 12: Managing Innovation and Fostering Corporate Entrepreneurship