Chapter 8

Question 1

What are the primary sources of innovation?

Answer 1

The primary sources of innovation include customers, competitors, suppliers, and internal R&D.

Question 2

True or False: Innovation can only come from within a company.

Answer 2

False

Question 3

Fill in the blank: ___________ is a source of innovation that involves new technologies developed internally.

Answer 3

Internal R&D

Question 4

Which of the following is NOT a source of innovation? (A) Customers (B) Competitors (C) Investors (D) Suppliers

Answer 4

C) Investors

Question 5

What role do customers play in the innovation process?

Answer 5

Customers provide feedback and insights that can lead to new product developments and improvements.

Question 6

What is the term for innovation that stems from observing competitors?

Answer 6

Competitive intelligence

Question 7

True or False: Supplier relationships can foster innovation.

Answer 7

True

Question 8

Short Answer: Name one way that external partnerships can contribute to innovation.

Answer 8

By sharing knowledge and resources.

Question 9

What is ‘open innovation’?

Answer 9

Open innovation is a model that encourages collaboration with external partners to drive innovation.

Question 10

Fill in the blank: ___________ innovation occurs when a company adopts existing technologies from other industries.

Answer 10

Cross-industry

Question 11

What is the significance of ‘user innovation’?

Answer 11

User innovation occurs when users create or modify products to better meet their needs, often leading to new market opportunities.

Question 12

True or False: Innovation can happen in service industries as well as manufacturing.

Answer 12

True

Question 13

What is the main benefit of utilizing customer insights for innovation?

Answer 13

It helps ensure that products and services meet market demands.

Question 14

Multiple Choice: Which source of innovation focuses on advancements in technology and scientific research? (A) Internal R&D (B) User Innovation (C) Market Trends (D) Supplier Relationships

Answer 14

A) Internal R&D

Question 15

What is a ‘disruptive innovation’?

Answer 15

Disruptive innovation refers to a process where a smaller company with fewer resources successfully challenges established businesses.

Question 16

Fill in the blank: ___________ refers to the process of adopting and adapting innovations from other countries.

Answer 16

Global innovation

Question 17

Short Answer: Describe one challenge associated with sourcing innovation from external partners.

Answer 17

Managing intellectual property rights.

Question 18

True or False: Innovation solely relies on technological advancements.

Answer 18

False

Question 19

What is the role of ‘market research’ in innovation?

Answer 19

Market research helps identify customer needs and trends that can inspire new product ideas.

Question 20

Which of the following best describes ‘incremental innovation’? (A) Major breakthroughs (B) Small improvements to existing products (C) Completely new products (D) None of the above

Answer 20

B) Small improvements to existing products

Question 21

What can be a consequence of ignoring competitor innovations?

Answer 21

Loss of market share and relevance.

Question 22

Fill in the blank: ___________ involves encouraging employees to contribute ideas and solutions to foster innovation.

Answer 22

Employee engagement

Question 23

True or False: Innovation is a linear process that follows a strict sequence.

Answer 23

False

Question 24

Short Answer: What is the impact of having a diverse team on innovation?

Answer 24

Diverse teams bring varied perspectives that can enhance creativity and problem-solving.

Question 25

Which source of innovation is driven by changing consumer preferences?

Answer 25

Market trends

Question 26

What is the relationship between innovation and competitive advantage?

Answer 26

Innovation can provide a competitive advantage by differentiating products and services in the market.