ENTSP 320 exam #2

Question 1

GE is one of the largest and most established diversified US firms. We discussed in class how GE used a minimum viable product (MVP) to obtain early feedback from “visionary” customers in one of their innovative projects to produce a powerful multi-purpose engine. What is a (are) potential advantage(s) that large firms have compared to start-up firms with regard to obtaining such feedback?

Answer 1

Established customer relationships to identify and recruit customers willing to purchase and try their MVP.

Question 2

o Agile product development is an iterative approach to software development that emphasizes flexibility, collaboration, and customer feedback. It focuses on delivering small, incremental improvements to products in short time frames.

Answer 2

agile organizations (five trademarks)

Answer 3

agile product development

Question 5

o emphasizes genuine, self-aware, and transparent leadership behavior. It involves leaders being true to themselves, their values, and their beliefs while fostering trust and openness within their teams.

Answer 5

authentic leadership

Question 6

o refers to large volumes of structured and unstructured data that can be analyzed to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Answer 6

big data

Answer 7

blue ocean strategies examples (Yellow Tail, Cirque du Soleil, Curves)

Question 8

o markets are characterized by low competition, high demand, and the creation of new market space through innovation and differentiation.

Answer 8

blue ocean market characteristics

Question 9

o a business approach that seeks to create uncontested market space by making competition irrelevant through innovation, value creation, and differentiation.

Answer 9

• Blue-ocean (market characteristics)

Question 10

o a business approach that seeks to create uncontested market space by making competition irrelevant through innovation, value creation, and differentiation.

Answer 10

• Blue-ocean strategy (definition)

Question 11

o a creative technique used to generate ideas through group discussion. Rules for effective brainstorming include deferring judgment, encouraging wild ideas, building on the ideas of others, and aiming for quantity over quality.
o Four steps:
1. (Re) Framing1. (Re) Framing
2. Warming up
3. Brainstorming (five individuals, facilitator; defer judgement and other rules)
4. Grouping and selecting

Answer 11

• Brainstorming and brainstorming rules

Question 12

o refer to the systems put in place to encourage and recognize entrepreneurial behavior within organizations. This can include financial incentives, recognition programs, and opportunities for advancement.

Answer 12

• CE incentive/reward structure (example, challenges)

Question 13

o Components to
 Visionary, strategic thinker & learner
 Good communicator with strong interpersonal skills
 Motivator and confidence builder
 Network and relationship builder
 Builder of entrepreneurial ecosystems that empower others

Answer 13

• CE leadership (multiple tasks/elements

Question 14

o refer to the ability of an organization to leverage its resources, knowledge, and skills to foster entrepreneurial activities and to continuously learn and adapt in response to changing market conditions.

Answer 14

• CE organization-capabilities (leveraging, learning)

Question 15

o involves evaluating the effectiveness of entrepreneurial initiatives within an organization. This includes setting objectives related to innovation, growth, and profitability, identifying key performance characteristics such as speed to market and resource utilization, addressing challenges such as risk management and resource constraints, and leveraging advanced information technology for data analysis and decision-making.

Answer 15

• CE performance assessment (objectives, characteristics, challenges, advanced IT)

Question 16

o a framework that outlines different approaches to corporate entrepreneurship in the context of developing new products or improving existing ones. It may involve strategies such as incremental innovation, breakthrough innovation, and open innovation.

Answer 16

product development

Question 17

o New market creation
o Creating a new product
o strategies often represent the tallest challenges for companies and are not easy to execute successfully.

Answer 17

• CE strategies grid: diversification

Question 18

o Focus on organization’s entrepreneurial or innovative abilities
o Current product, new market creation/new market entry

Answer 18

market development

Question 19

o Market extension/existing market
o Current product/product extension

Answer 19

market penetration

Question 20

o Business model and culture of the firm
o Design of a new or redesign of an existing business model
o Frequency: extremely low

Answer 20

• CE strategies: business model reconstruction

Question 21

o New competitive space
o Creation of new or reconfiguration of existing product categories or market space
o Frequency: moderate

Answer 21

domain redefinition

Question 22

o Fundamental organization structure, processes, and/or capabilities of the firm
o Enactment of a major, internally-focused innovation aimed at improving strategy implementation
o Frequency: low

Answer 22

organizational rejuvenation

Question 23

o Strategy of the firm
o Adoption of a new strategy
o Frequency: moderate-to-low

Answer 23

strategic renewal

Question 24

o Products offered by the firm or markets served by the firm
o Introduction of a new product into a pre-existing product category or introduction of an existing product into a new (to the firm) but pre-existing market
o Frequency: high

Answer 24

sustained regeneration

Question 25

o Separate business unit for Research & Development (R&D Dept/Division)
o Corporate venture group/unit/division to manage the resulting new business venture that do not fit to existing divisions
o Challenges:
o Less input into R&D from current businesses or customers
o If new businesses successful potential later conflicts between new and existing divisions
o Integration of new into existing businesses often becomes major challenge (“not invented here syndrome

Answer 25

• Centralized CE strategies (e.g., Xerox Pablo Alto Research Center)

Question 26

o Each division is assigned task to create new businesses (or products)
o Challenges:
o Innovation only one of many objectives
o Existing business needs may dominates innovation needs
o If strong pressures to innovate are applied (e.g., incentive structure, performance evaluation), managers may ignore existing business to the firm’s detriment
o Innovations may not fit divisions capabilities and positioning

Answer 26

• Challenges of CE (decentralize authority; integrate with autonomy)

Question 27

o Hybrid/balanced strategies (resulting in ambidextrous firms)
o Flexible “customized” innovation strategies (flexible, pivoting)
o Flexible and agile organizational structures/processes
o Often using temporary projects and taskforces
o Create and support new innovative businesses
o Identify and exploit synergies with existing businesses
o Staff new venture also with “mature turks”
o Change veterans’ thinking to get existing divisions onboard
o Share decision responsibilities for critical decisions across divisions
o Integrate with autonomy
o Oscillate between more autonomy and more integration over time

Answer 27

• Challenges of CE (staff with “mature turks”; change veteran thinking)

Question 28

o Matured existing businesses
o Organizational structures, processes and systems
o focused on stability, efficiency, incremental improvement/growth
o New ventures/businesses
o Organizational structures, processes and systems
o focused on change/flexibility, innovation/effectiveness, radical improvements/growth

Answer 28

• Challenges of CE (two-cultures problem; balancing issues)

Question 29

o relying primarily on internal research and development efforts to generate new ideas and innovations, with limited external collaboration or openness to external ideas and technologies.

Answer 29

• Closed-innovation strategies

Question 30

o propose that the effectiveness of leadership styles depends on various situational factors, including the characteristics of the leader, the group or team being led, the nature of the task or project, and the broader organizational or environmental context.

Answer 30

• Contingency theories of leadership (leader, group, task, setting)

Question 31

o Each division is assigned task to create new businesses (or products)
o Challenges:
o Innovation only one of many objectives
o Existing business needs may dominates innovation needs
o If strong pressures to innovate are applied (e.g., incentive structure, performance evaluation), managers may ignore existing business to the firm’s detriment
o Innovations may not fit divisions capabilities and positioning

Answer 31

• Decentralized CE strategies (e.g., 3M)

Question 32

o a structured, time-constrained process used to solve complex problems and develop innovative solutions. Characteristics include a focus on collaboration, rapid prototyping, and user feedback. Potential benefits include accelerated innovation, reduced risk, and increased team alignment.

Answer 32

• Design sprint (characteristics, potential benefits)

Question 33

o involves defining the problem or challenge to be addressed, assembling a cross-functional team, setting goals and objectives, and scheduling the activities and timeline for the sprint.

Answer 33

• Design sprint (planning)

Question 34

o involves a five-stage process:
o Empathize (understanding the needs and experiences of users),
o Define (identifying the problem to be solved),
o Ideate (generating creative solutions),
o Prototype (building prototypes to test ideas), and
o Test (gathering feedback and refining solutions).

Answer 34

• Design thinking IDEO stages (empathize, define, ideate, prototype, test)

Question 35

o it may be less appropriate for highly technical or specialized challenges where domain expertise is required. Limitations include the potential for superficial solutions and the need for time and resources to conduct the process effectively.

Answer 35

• Design thinking (when less appropriate, limitations)

Question 36

o the rapid technological advancements in computing and communication technologies, such as the internet, smartphones, and artificial intelligence, and their transformative effects on various industries and society as a whole. Disruptive effects include the creation of new business models, the disruption of traditional industries, and changes in consumer behavior.

Answer 36

• Digital revolution (disruptive effects)

Question 37

o involve tasks such as setting a vision for the organization, developing strategies to achieve goals, and communicating expectations and objectives to team members.

Answer 37

• Direct leadership activities (vision, strategy, communication)

Question 38

o refers to the degree to which an organization engages in entrepreneurial activities. It has implications for firm performance, including innovation, growth, and competitive advantage.

Answer 38

• ENT intensity (firm performance implications)

Question 39

o refer to ongoing efforts within an organization to improve existing products, processes, or services through small, incremental changes or innovations.

Answer 39

continuous/incremental entrepreneurial events

Question 40

o refer to more significant, transformative initiatives within an organization, such as entering new markets, developing breakthrough innovations, or restructuring the business model.

Answer 40

dynamic entrepreneurial events

Question 41

o refer to episodic bursts of entrepreneurial activity within an organization, such as strategic acquisitions, divestitures, or major product launches.

Answer 41

periodic/discontinuous entrepreneurial events

Question 42

o refer to radical transformations or disruptions within an organization, such as the introduction of entirely new products or the creation of new business units.

Answer 42

revolutionary entrepreneurial events

Question 43

o regularly occurring small-scale innovations or improvements within an organization, aimed at maintaining competitiveness and relevance in the market.

Answer 43

periodic/incremental entrepreneurial events

Question 44

o a tool used in design thinking to visualize and understand the thoughts, feelings, and experiences of users or customers. It typically includes sections for what users see, hear, say, do, think, and feel.

Answer 44

• Empathy map

Question 45

o environments that support and nurture entrepreneurship, innovation, and economic growth. Examples include Silicon Valley, known for its concentration of tech startups, venture capital, and supportive infrastructure.

Answer 45

Entrepreneurial Ecosystems (e.g., Silicon Valley)

Question 46

o Frequency of entrepreneurship vs degree of entrepreneurship
 Innovativeness
 Risk taking
 Proactiveness
 Reactiveness
o Periodic/incremental
o Continuous/ incremental
o Revolutionary
o Dynamic
o Periodic/discontinuous

Answer 46

• Entrepreneurial grid #1 (frequency vs. degree of entrepreneurship)

Question 47

o strategic tool used to identify new market opportunities by creating, raising, reducing, or eliminating certain factors in the industry value chain. It aims to break industry norms and create value for customers in innovative ways.

Answer 47

• Four-actions framework (create, raise, reduce, eliminate)

Question 48

o increased emphasis on digital transformation, the rise of open innovation ecosystems, the integration of sustainability and social responsibility into entrepreneurial strategies, and the leveraging of advanced technologies such as AI and blockchain.

Answer 48

• Future trends in corporate entrepreneurship

Question 49

o labor market characterized by short-term, freelance, or temporary work arrangements rather than traditional full-time employment. Workers in the gig economy are often independent contractors or freelancers who work on a project basis.

Answer 49

• Gig economy

Question 50

o a program that allows website owners to monetize their content by displaying targeted ads, while Google AdWords is an advertising platform that enables businesses to create and run online advertisements on Google’s network.

Answer 50

• Google AdSense and AdWords software

Question 51

o involves small, cross-functional teams with a high degree of autonomy and responsibility for specific projects or initiatives. This structure promotes collaboration, innovation, and rapid decision-making.

Answer 51

• Google project-team structure

Question 52

o policy allows employees to spend up to 20% of their working hours pursuing projects of their own choosing, often leading to innovative ideas and products outside of their primary job responsibilities.

Answer 52

• Google twenty-percent time/projects

Question 53

o increasing interconnectedness and cross-border flow of entrepreneurial activities, ideas, and innovations. It involves leveraging global markets, talent, and resources to create and grow businesses.

Answer 53

• Globalization of entrepreneurship

Answer 54

• Hybrid/balanced CE strategies (e.g., IBM)

Question 55

o by enabling faster communication, collaboration, and data analysis, as well as facilitating the development of innovative products and services.

Answer 55

• Impact of advanced IT on CE strategy implementation

Question 56

o Motivator and confidence builder
o Network and relationship builder
o Builder of entrepreneurial ecosystems that empower others

Answer 56

• Indirect leadership (motivate, network building, empowering others)

Question 57

o employees within an organization who exhibit entrepreneurial behavior, such as taking initiative, innovating, and driving change. Success stories and lessons learned from intrapreneurs can provide valuable insights into fostering a culture of innovation and entrepreneurship within organizations.

Answer 57

• Intrapreneurs (success stories/lessons learned)

Question 58

o extent to which a leader’s actions, values, and behaviors align with their true self. Authentic leaders are genuine, self-aware, and consistentLeader-follower models of leadership

Answer 58

• Leader authenticity

Question 59

o Most (all) individuals have leadership potential
o Leadership skills benefit systematic development (= develop your personal tool box)
o Personal advice: Start now! How?

Answer 59

• Leaders (born or made?)

Question 60

o Part of the execution phase of motivating and confidence building

Answer 60

• Leadership and “ability to listen”

Question 61

o Execution of good communicator and strong interpersonal skills

Answer 61

• Leadership by example

Question 62

o Teams can combine individuals with complementary leaderships skills and have potential accomplish more than individuals

Answer 62

• Leadership teams vs. individuals

Question 63

o simplest version of a product that allows a team to collect the maximum amount of validated learning about customers with the least effort. It is often used in startup environments to quickly test hypotheses and gather feedback before investing significant resources into product development. The GE Series X example refers to General Electric’s approach of developing minimal viable offerings to test the market before committing to full-scale production.

Answer 63

• *Minimum Viable Product (MVP; GE Series X example)

Question 64

o Spin-in” innovations at other firms by
acquiring these ideas acquiring these ideas (can reduce cost and risks)(can reduce cost and risks)
“Spin-out” own innovations that do not fit the
firm’s capabilities by selling them to other firms (can benefit profits and network building)

Joint and collaborative innovative project with external entities (both temporary and/or more permanent)

Answer 64

• Open innovation (spin-in vs. spin-off ventures)

Question 65

o Procter & Gamble, which collaborates with external partners to develop new products, and NASA, which engages the public and private sector through challenges and competitions to solve complex technical problems.

Answer 65

• Open innovation (success examples)

Question 66

o involves actively seeking and integrating external ideas, technologies, and expertise into the innovation process, recognizing that valuable knowledge and insights exist outside the boundaries of the organization. This may involve collaborating with external partners, participating in industry networks, and leveraging platforms for idea exchange and co-creation.

Answer 66

• Open innovation and absorbing ideas

Question 67

o involve actively engaging with external stakeholders to source, develop, and commercialize innovations, while closed innovation strategies rely primarily on internal R&D and intellectual property. Hybrid or partial open innovation strategies combine elements of both approaches, depending on the nature of the innovation and the strategic goals of the organization.

Answer 67

• Open, closed, and hybrid/partial open innovation strategies

Question 68

o offer opportunities for accessing external expertise, accelerating time-to-market, and reducing R&D costs. However, they also pose challenges such as protecting intellectual property, managing collaborations effectively, and integrating external innovations with internal processes and culture.

Answer 68

• Open-innovation strategies (opportunities, challenges)

Question 69

o characterized by its flat hierarchy, open communication channels, and collaborative work environment. Employees are encouraged to share ideas freely, experiment with new initiatives, and collaborate across teams to drive innovation and solve complex problems.

Answer 69

• Organizational culture at Google (flat, open, collaborative)

Question 70

o involves guiding and directing a team to achieve project objectives, overseeing planning and execution, managing resources and stakeholders, and ensuring alignment with organizational goals. The dynamics of project leadership include managing team dynamics, navigating conflicts, adapting to changing circumstances, and maintaining motivation and morale

Answer 70

• Project leadership (dynamics)

Question 71

o outlines the objectives, scope, schedule, resources, and deliverables of a project, providing a roadmap for execution and monitoring. Components may include a project charter, work breakdown structure, Gantt chart, and risk management plan. Pros of a project plan include clarity, accountability, and alignment, while cons may include rigidity, complexity, and the need for regular updates.

Answer 71

Project plan (components, pros and cons)

Question 72

o identifying, assessing, and mitigating potential risks that could impact project objectives, timelines, and budgets. This may include conducting risk assessments, developing risk registers, implementing risk mitigation strategies, and monitoring risk throughout the project lifecycle.

Answer 72

• Project risk evaluations

Question 73

o defining the boundaries, deliverables, and objectives of a project to ensure alignment with stakeholder expectations and project success criteria. Importance includes setting clear expectations, managing project resources, and controlling project scope. Pros include clarity, focus, and alignment, while cons may include inflexibility, scope creep, and project delays.

Answer 73

• Project scope definition (importance, pros and cons)

Question 74

o individuals or groups who have an interest or influence in the project and its outcomes. Stakeholder management involves identifying stakeholders, understanding their needs and expectations, engaging with them throughout the project lifecycle, and addressing their concerns to ensure project success and stakeholder satisfaction.

Answer 74

• Project stakeholder and stakeholder management

Question 75

o typically formed based on expertise, experience, and availability, with members selected from across the organization. Team size may vary depending on the project scope and complexity. Google often employs a concept of rotating leadership, where team members take turns leading different aspects of the project to foster collaboration, skill development, and innovation. Other characteristics may include diversity, autonomy, and a focus on results.

Answer 75

• Project teams at Google (selection, size, rotating leadership, other characteristics)

Question 76

o involves leveraging the collective intelligence and creativity of a large group of individuals or communities to solve complex problems or generate new ideas. Examples include NASA’s use of crowdsourcing platforms to engage the public in solving technical challenges and contributing to space exploration initiatives.

Answer 76

• Public crowdsourcing for innovations (e.g., NASA)

Question 77

o existing market spaces characterized by intense competition, saturated demand, and limited growth opportunities. In red oceans, competition is fierce, and companies vie for market share through price competition and incremental innovations.

Answer 77

• Red oceans (market characteristics)

Question 78

o collaborative economy or peer-to-peer economy, refers to economic models based on sharing, renting, or trading goods and services rather than owning them outright. Examples include platforms like Airbnb, Uber, and TaskRabbit, which enable individuals to monetize underutilized assets or skills through peer-to-peer transactions.

Answer 78

• Sharing economy

Question 79

o a renowned entrepreneurial ecosystem located in California’s Bay Area, known for its concentration of technology companies, venture capital firms, research institutions, and startup culture. It is characterized by a culture of innovation, risk-taking, and collaboration, making it a hub for entrepreneurship and innovation.

Answer 79

• Silicon Valley as an entrepreneurial ecosystem

Question 80

o visual tool used in project planning and design to outline the sequence of events, interactions, or user experiences in a narrative format. It typically involves sketching or diagramming key scenes or milestones to visualize the flow and structure of a project or process.

Answer 80

• Storyboarding

Question 81

o a visual tool used in strategic planning to illustrate a company’s current strategic position relative to its competitors. It maps out the key factors that customers value in an industry and compares the company’s performance on these factors against that of its competitors. By visually depicting these factors and their importance, a strategy canvas helps identify areas where the company can differentiate itself and create a unique value proposition.

Answer 81

• Strategy canvas

Question 82

o methodology developed by Eric Ries, author of “The Lean Startup,” which provides guidance for applying startup principles within large organizations to foster innovation and agility. The methodology emphasizes concepts such as Minimum Viable Product (MVP), which refers to the smallest version of a product that allows a team to test its hypotheses and gather feedback from users, and pivot, which involves making strategic changes to a product or business model based on the insights gained from testing the MVP.

Answer 82

• The Start-up Way (MVP, pivot)

Question 83

o methodology, pivoting refers to the act of making a fundamental change to a product, strategy, or business model based on feedback and data gathered during the testing of a Minimum Viable Product (MVP). Pivoting allows startups and organizations to adapt to changing market conditions, customer needs, or internal constraints to improve their chances of success.

Answer 83

• The startup way (pivot and pivoting)

Question 84

o manufacturing process that creates three-dimensional objects by layering materials based on a digital model. In the context of MVP (Minimum Viable Product), 3D printing can be used to rapidly prototype and iterate on product designs, allowing startups and organizations to quickly test and refine their ideas before investing in full-scale production.

Answer 84

• 3D printing and MVP

Question 85

o involves adopting agile principles and practices to increase adaptability, responsiveness, and innovation. Best practices may include fostering a culture of experimentation and learning, empowering cross-functional teams, implementing iterative development processes, and embracing digital technologies. Examples of companies that have successfully transformed into agile organizations include Spotify, Amazon, and Zappos.

Answer 85

• Transform firms into agile organizations (best practices; examples)

Question 86

o catalysts or triggers that disrupt the status quo within an organization and create a sense of urgency or need for change. These events may include shifts in market conditions, technological advancements, competitive threats, leadership changes, or financial crises. Unfreezing events often prompt organizations to reevaluate their strategies, processes, and behaviors and to consider adopting new approaches or initiatives to address emerging challenges.

Answer 86

• Unfreezing events

Question 87

o depict the perceived value that a company’s products or services deliver to customers relative to key competitors. They illustrate how a company differentiates itself in the market based on factors such as price, quality, features, and customer experience. By analyzing value curves, companies can identify opportunities to strengthen their value propositions and gain competitive advantage.

Answer 87

• Value curves or value profile