Chapter 8

Question 1

Black Swan moment

Answer 1

Random event that is inappropriately believed to be more frequent than it is.

Question 2

Known knowns

Answer 2

Obvious context. With these things, you know what the situation is and you know what to do. Ex. Machine learning is costly

Question 3

Known unknowns

Answer 3

Things that exist but we don’t have information. Ex. Bias in risk, we are unaware of where and how much

Question 4

Unknown unknowns

Answer 4

Things we don’t even know that need to find out. We know nothing and so we don’t know the right questions to ask

Question 5

Unknown knowns

Answer 5

These are moments where you just know intuitively know the right thing to do, result of years of experience. Ex. We don’t know how this would benefit a company, but we know it will.

Question 6

How to sell in the face of uncertainty

Answer 6

Fear selling - pain avoidance
Reward selling - reward achievement
Sell to a client - fear selling is very powerful
Sell to your boss - reward selling. Trick is not to oversell

Question 7

Innovation management

Answer 7

Trying to convert uncertainty to a calculated risk

Question 8

Animal spirits (John Maynard Keynes)

Answer 8

People can be persuaded to take a risk by convincing argument, expressions of energy or passion, or by hooking into powerful emotions like fear.

Question 9

Innovation funnel

Answer 9

Outline concept (many possibiities)
Detailed Design
Testing
Launch (most specific)

Question 10

5 stages of stage gate process

Answer 10

Idea Formulation
Concept Formulation
Product Development
Test Marketing
International Marketing

Question 11

High involvement systems

Answer 11

A large proportion of the workforce becomes engaged in innovation

Question 12

Policy deployment

Answer 12

Devolving the top level innovation strategy to lower levels in the organization

Question 13

Benefits of a business model

Answer 13

Provides a roadmap for creating value out of innovation
Provides a way to share the idea/vision with others
Offers a checklist to make sure the idea is creating value

Question 14

Lean start up and agile development

Answer 14

Concept that innovation is a series of experimental learning cycles that gradually collect information

Question 15

Think, Play, Do (Gann, Salter, Dodgson)

Answer 15

Innovation process: extended play phase and postpone final commitent until late in the process

Question 16

Impacts from poor portfolio management

Answer 16

No limit to projects taken on
Reluctance to kill-off or deselect projets
Lack of strategic focus in project mix
Weak or ambiguous selection criteria
Weak decision criteria

Question 17

cognitive dissonance

Answer 17

Organizations often selectively perceive and interpret the new situation to match or fit their established world views

Question 18

Bounded rationality (Herbert Simon)

Answer 18

When reasons and decision rules are clear, but decisions are always taken from “inside the box”

Question 19

Generic business model innovation strategies

Answer 19

User driven not supplier led
Servitization- manufacturing operations are reframed as service offerings
Rent not own