Innovation Management

Question 1

3 life phases of a technology.

Answer 1

1) Introduction
2) Growth
3) Maturity

Question 2

3 types of R&D.

Answer 2

1) Basic
2) Applied
3) Experimental

Question 3

Define “Basic R&D”.

Answer 3

General new scientific knowledge. It describes and explains observable phenomena.

Question 4

Define “Applied R&D”.

Answer 4

It is new industrial/engineering knowledge that provides technical solutions to specific problems.

Question 5

Define Innovation. 2 categories.

Answer 5

1) Product innovation
2) Business process innovation
Product or process that is an improvement and differs significantly from the previous one.

Question 6

2 ways of acquiring Innovation inputs. Explain.

Answer 6

1) Technology push: emphasis on R&D for completely new technologies
2) Market pull: emphasis on analysing market needs

Question 7

3 types of innovation. Explain.

Answer 7

1) Incremental: a significant improvement
2) Radical: something completely new and unforeseen
3) Disruptive: usually happens when new companies capture the lower-end segments of already established companies

Question 8

5 Porter’s threats.

Answer 8

1) Competition
2) Potential of new entrants
3) Bargaining power of suppliers
4) Bargaining power of customers
5) Threat of substitute products

Question 9

4 categories of “Technologies”. Explain.

Answer 9

1) Base: vital to the business and well known in the industry
2) Key: give the current advantage in the market
3) Pacing: not yet implemented, but new technologies with high potential already under testing
4) Emerging: new but unclear technologies

Question 10

3 examples of “Technology protection”.

Answer 10

1) Patents
2) Legal agreements (confidentiality)
3) Appropriation: no formal protection because the process/product is so complex or ahead of time for competitors to copy

Question 11

What are “patents”?

Answer 11

A legal document that guarantees the company protection for 20 years

Question 12

5 types of Innovation strategies.
[approaches to innovation]

Answer 12

1) Offensive / proactive
2) Defensive / reactive
3) Opportunistic
4) Dependant
5) Imitative / traditional (almost no innovation)

Question 13

4 key points of the Offensive Innovation strategy.

Answer 13

1) High risk and cost
2) Higher potential profits (monopoly)
3) Low starting efficiency
4) Good corporate image

Question 14

3 key points of the Defensive Innovation strategy.

Answer 14

1) Little risk
2) Better existing production and distribution efficiency
3) Improve upon others innovations and learn from their mistakes

Question 15

Explain the Opportunistic Innovation strategy.

Answer 15

Focus on niche markets (e.g., phones for blind people)

Question 16

Explain the Dependant Innovation strategy.

Answer 16

Tech acquisition (patents & licenses)

Question 17

8 Knowledge (learning) strategies.

Answer 17

1) Explorative VS exploitative
2) External VS internal
3) Breadth VS depth
4) Slow VS fast

Question 18

Explain the Explorative Knowledge strategy.

Answer 18

Experimentation with new alternatives and unknowns.

Question 19

Explain the Exploitative Knowledge strategy.

Answer 19

Refinement and deepening of existing tech and solutions.

Question 20

Explain Ambidexterity as a Knowledge strategy.

Answer 20

Explorative + exploitative

Question 21

Explain Open innovation as a Knowledge strategy.

Answer 21

Internal + external

Question 22

3 types of Organisational structure.

Answer 22

1) Functional
Multidivisional:
2) Product
3) Geographic / market

Question 23

4 advantages of Functional organisational structure.

Answer 23

1) Specialisation (no duplication)
2) Economies of scale
3) Management is in touch with all functions
4) Clear responsibilities

Question 24

3 disadvantages of Functional organisational structure.

Answer 24

1) Higher authority (less employee involvement)
2) Unflexible (problematic on a very large scale)
3) Low diversity

Question 25

4 advantages of Multidivisional organisational structure.

Answer 25

1) Decentralisation
2) More contact with customers
3) Improved inter-unit communication
4) Local adaptation

Question 26

3 disadvantages of Multidivisional organisational structure.

Answer 26

1) Fragmentation and non-cooperation
2) Loss of central control and common path
3) Task and resource duplication

Question 27

3 advantages of Matrix organisational structure.

Answer 27

1) Adaptation to complexity and change
2) Improved inter-function communication
3) Increased participation in decision-making

Question 28

3 disadvantages of Matrix organisational structure.

Answer 28

1) Conflict between managers
2) Unclear job responsibilities
3) Unclear cost / profit responsibilities

Question 29

2 types of Knowledge. Explain.

Answer 29

1) Tacit: hard to explain, usually unconscious and hard to store (like explaining how to ride a bike etc.)
2) Explicit: conscious, easy to store and explain (like how to solve a math problem)

Question 30

What is a Learning organisation compared to the Traditional type?

Answer 30

In contrast to the Traditional concept, where organisations are hierarchies to be managed, the Learning organisation provides more adaptation, open dialogue and diversity.

Question 31

5 criteria of a Learning organisation.

Answer 31

1) Experimentation
2) Risk taking
3) Interaction with the external environment
4) Dialogue
5) Participative decision making