Chapter 8: Managing Change and Innovation Flashcards
the adoption of a new idea or behavior by an organization.
organizational change
innovations in products or services that typically start small and end up completely replacing an existing product or service technology for producers and consumers.
disruptive innovation
(ex: Netflix turned into an online-streaming service which kicked Blockbuster out of competition)
Creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries.
reverse innovation
T or F: Change–especially major change such as that associated with disruptive innovation– is not easy.
True
incorporating structures and processes that are appropriate for both the creative impulse and for the systematic implementation of innovations.
ambidextrous approach
(so like managers encourage flexibility and freedom to innovate and PrOPOSE new ideas with creative departments and other mechanisms, but they use a more rigid, centralized, and standardized approach for IMPLEMENTING innovations)
The smartphone, which essentially puts a computer in people’s pockets, is an example of __________ because it has replaced other technologies.
a. A reverse innovation
b. An ambidextrous approach
c. Disruptive innovation
c. Disruptive innovation
a change in the organization’s product or service output.
product change (is a vital area of change that organization’s must embrace)
Product and service innovation is the primary way in which organizations adapt to changes in _______, ______, and _______.
markets, technology, and competition
a change in the organization’s production process- how the organization does its work.
technology change
(Technology changes are designed to make the production of a product or service more efficient.)
What are the 3 critical innovation strategies for changing products and technologies?
- Exploration
- Cooperation
- Innovation Roles
Match each of the following descriptions to which critical innovation strategy for changing products and technologies they describe:
1. involves designing the organization to encourage creativity and the initiation of new ideas → creativity, bottom-up approach, internal contests, idea incubators
2. managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation → idea champions, new venture teams, skunkworks, new venture fund
3. creating conditions and systems to facilitate internal and external coordination and knowledge sharing → horizontal coordination mechanisms, customers, partners, open innovation
- Exploration
- Innovation Roles
- Cooperation
Taco Bell and Mcdonald’s are considering adding kiosks in restaurants for customers to place their orders. This ________ change will hopefully make the ordering process more efficient and increase accuracy.
a. Product change
b. Technology change
b. technology change
_________ is the stage where ideas for new products and technologies are born.
Exploration
refers to the generation of novel ideas that might meet perceived needs or respond to opportunities for the organization.
creativity
Innovative companies use a _______-____ approach to creativity, encouraging the flow of ideas from lower levels and making sure they get heard and acted upon by top executives.
bottom-up
a mechanism that provides a safe harbor where ideas from employees throughout the company can be developed without interference from company bureaucracy or politics
idea incubator
T or F: Ideas for product and technology innovations typically originate at lower levels of the organization and need to flow horizontally across departments.
True
Successful innovation requires expertise from several departments simultaneously, and failed innovation is often the result of failed _________.
cooperation
What approach/model to successful innovation shows that the research, manufacturing, and sales and marketing departments within an organization simultaneously contribute to new products and technologies?
Horizontal Linkage Model
The Horizontal Linkage Model has to do with (internal/external) coordination.
internal
extending the search for and commercialization of new ideas beyond the boundaries of the organization and even beyond the boundaries of the industry.
open innovation (has to do with external coordination)
(ex: game maker Rovio extended the commercialization of the Angry Birds brand into books, movies, and toys by letting outsiders license the popular gaming app)
refers to using the internet to let hundreds of thousands of people contribute to the innovation process.
crowdsourcing (has to do with external coordination; is a type of open innovation)
recognizes that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms; so, companies buy start-up companies in order to obtain the innovative products and services, and often the talent behind them as well
Innovation by Acquisition Strategy (has to do with external coordination)
(examples: Google bought Android, Facebook bought Instagram, and Amazon bought Twitch Interactive)
a person who sees the need for and champions productive change within the organization.
idea champion (has to do with innovation roles)
Idea champions often persevere through numerous challenges and setbacks, which requires perseverance and passion, sometimes called _____.
grit
a unit separate from the rest of the organization that is responsible for developing and initiating a major innovation.
new-venture team (has to do with innovation roles)
a separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas; highly talented people are given the time and freedom to allow their creativity to reign
skunkworks (has to do with innovation roles)
provides financial resources from which individuals or teams can draw to develop new ideas, products, or businesses. (provide funding to new-venture projects)
new-venture fund (has to do with innovation roles)