Module 2: Responding to Different Types of Innovations Flashcards
What is the difference between disruptive and sustaining technologies?
Disruptive technologies create new markets or displace existing ones, while sustaining technologies improve upon existing products to serve current markets.
Why do incumbent firms struggle to adopt disruptive technologies?
Incumbent firms struggle with disruptive technologies because they often prioritize existing profitable customers and business models.
What is corporate entrepreneurship?
Corporate entrepreneurship refers to initiatives within a company that drive innovation and create new business opportunities.
What are innovation streams?
Innovation streams involve managing a portfolio of innovations that range from sustaining improvements to disruptive breakthroughs.
What is an ambidextrous organization?
An ambidextrous organization is one that balances exploration of new innovations with exploitation of existing capabilities.
What are the main challenges of managing a portfolio of innovations?
The main challenges include balancing resources between existing and new ventures, managing risk, and fostering a culture that supports both exploration and exploitation.
How can ambidexterity help firms respond to disruptive technologies?
Ambidexterity allows firms to explore disruptive innovations through semi-autonomous units while maintaining operational efficiency in their core business.
What role do leaders play in corporate entrepreneurship?
Leaders must foster a culture of innovation, allocate resources effectively, and ensure alignment between new ventures and the broader organization.
What is the significance of organizational inertia in innovation management?
Organizational inertia refers to the resistance to change within established systems, making it difficult for firms to adapt to disruptive innovations.
How do firms manage innovation streams effectively?
Firms manage innovation streams by balancing short-term improvements with long-term disruptive innovations, often through specialized units and leadership oversight.
