Chapter 11: Innovation and Change

Question 1

Disruptive Innovation

Answer 1

innovation that typically starts small and ends up completely replacing an existing product or service technology for producers and consumers

Question 2

Disruptive Innovation: stage 1

Answer 2

a new technology, product or service emerges on a small scale but poses as a potential threat

Question 3

Disruptive Innovation: Stage 2

Answer 3

established companies ignore the potential threat, wanting to hold on to their current business model

Question 4

Disruptive Innovation: Stage 3

Answer 4

previously unnoticed companies, products and services grow to a size that destroys the established business model

Question 5

Types of Strategic Change

Answer 5

• Technology
• Products and Services
• Strategy and Structure
• Culture

Question 6

Technology Change

Answer 6

changes in an organization’s production process, including its knowledge and skills base, that enable distinctive competence
- facilitated by ambidextrous organization

Question 7

Product and Services Change

Answer 7

changes in an organization’s product or service outputs
- Facilitated by horizontal coordination model

Question 8

strategy and structure changes

Answer 8

changes in the administrative domain of an organization, including structure, policies, reward systems, labour relations, coordination devices, management information control systems, and accounting and budgeting
- Facilitated by mechanistic org decision (dual-core approach)

Question 9

Culture changes -

Answer 9

changes in the values, attitudes, expectations, beliefs, abilities, and behaviour of employees
- Organization development interventions

Question 10

Technology Change techniques

Answer 10

• Switching structures
• Separate creative departments
• venture teams
• intrapreneurship

Question 11

idea incubator (separate creative departments)

Answer 11

safe harbour where ideas from employees throughout the organization can be developed without interference from bureaucracy or politics

Question 12

switching structures

Answer 12

an organization creates an organic structure when such a structure is needed for the initiation of new ideas

Question 13

venture teams

Answer 13

a technique to foster creativity within organizations in which a small team is set up as its own company to pursue innovations

Question 14

creative departments

Answer 14

organizational departments that initiate change, such as research and development, engineering, design, and systems analysis

Question 15

idea champions/ intrapreneurs

Answer 15

organizational members who provide the time and energy to make things happen; sometimes called advocates, intrapreneurs, and change agents

Question 16

New Products and Services

Answer 16

• success rate is very low
• must: understand customers and marketing, use outside tech, have top management support innovation

Question 17

Horizontal coordination model - adds

Answer 17

• specialization
• boundary spanning
• horizontal communication

Question 18

Forces for Culture Change

Answer 18

• Re-engineering and horizontal organizing
• Diversity
• Learning organization

Question 19

Organization Development

Answer 19

a behavioural science field devoted to improving performance through trust, open confrontation of problems, employee empowerment and participation, the design of meaningful work, cooperation between groups, and the full use of human potential

Question 20

organizational change

Answer 20

the adoption of a new idea or behaviour by an organization

Question 21

Organization Development Intervention

Answer 21

• Large group intervention
• Team building
• Interdepartmental activities

Question 22

Large group intervention

Answer 22

an approach that brings together participants from all parts of the organization (and may include outside stakeholders as well) to discuss problems or opportunities and plan for change

Question 23

Team building

Answer 23

activities that promote the idea that people who work together can work together as a team

Question 25

Barriers to Change

Answer 25

• Excessive focus on costs
• Failure to perceive benefits
• Lack of coordination and cooperation
• Uncertainty avoidance
• Fear of loss

Question 26

7 Steps for Implementing Change

Answer 26

• Urgency
• coalition to guide the change
• create a vision and strategy for change
• find an idea that fits the need
• develop plans to overcome resistance to change
• create change team
• foster idea champions

Question 27

How change is facilitated

Answer 27

• Ambidextrous
• horizontal coordination model
• dual-core approach/ mechanistic
• organizational development

Question 28

Ambidextrous

Answer 28

approach a characteristic of an organization that can behave in both an organic and a mechanistic way

Question 29

dual-core approach

Answer 29

an organizational change perspective that identifies the unique processes associated with administrative change compared to those associated with technical change

Question 30

horizontal coordination model

Answer 30

a model of the three components of organizational design needed to achieve new product innovation: departmental specialization, boundary spanning, and horizontal linkages

Question 31

Organization development

Answer 31

a behavioural science field devoted to improving performance through trust, open confrontation of problems, employee empowerment and participation, the design of meaningful work, cooperation between groups, and the full use of human potential

Question 32

change process

Answer 32

the way in which planned changes occur in an organization

Question 33

creativity

Answer 33

the generation of novel ideas that may meet perceived needs or respond to opportunities

Question 34

crowdsourcing

Answer 34

approach that opens innovation by soliciting ideas from online volunteers

Question 35

incremental change

Answer 35

a series of continual progressions that maintains an organization’s general equilibrium and often affects only one organizational part

Question 36

management champion

Answer 36

a manager who acts as a supporter and sponsor of a technical champion to shield and promote an idea within the organization

Question 37

new-venture fund

Answer 37

a fund that provides financial resources to employees to develop new ideas, products, or businesses

Question 38

open innovation

Answer 38

an approach that extends the search for and commercialization of new products beyond the boundaries of the organization

Question 39

organizational innovation

Answer 39

the adoption of an idea or behaviour that is new to an organization’s industry, market, or general environment

Question 40

radical change

Answer 40

a breaking of the frame of reference for an organization, often creating a new equilibrium because the entire organization is transformed

Question 41

skunkworks

Answer 41

separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business

Question 42

technical champion

Answer 42

a person who generates or adopts and develops an idea for a technological innovation and is devoted to it, even to the extent of risking position or prestige; also called product champion

Question 43

time-based competition

Answer 43

delivering products and services faster than competitors, giving companies a competitive edge