OTD Chapter 13

Question 1

Types of innovation

Answer 1

Quantum change

Incremental change

Question 2

Quantum change

Answer 2

• Quantum technological change: a fundamental shift in technology that revolutionises products or the way they are produced.
• Quantum innovations: new products or operating systems that incorporate quantum technological improvements.

Question 3

Incremental change

Answer 3

• Incremental technological change: technological change that represents a refinement of some base technology.
• Incremental innovation: products or operating systems that incorporate refinements of some base technology.

Question 4

Property rights

Answer 4

E.g., buildings, land, copyrights, patents.

They give people and organizations the right to own and control productive resources and profit from them.

Question 5

Intrapreneurship

Answer 5

Entrepreneurs inside an organization who are responsible for the success or failure of a project.

Question 6

Knowledge-creating organization

Answer 6

An organization where innovation is going on all levels, in all areas.

Question 7

Creative destruction

Answer 7

The process of widespread technological changes brought about by increasing global competition that generate new innovations.

New start-ups become the companies that will lead the industries of the future unless “older” competitors can find ways to fight back.

Question 8

Intrapreneurship vs. entrepreneurship

Answer 8

Intrapreneurship (innovation from within)

Entrepreneurship (starting a new venture)

Question 9

Product life cycle

Answer 9

Changes in demand for a product that occur over time. This changes per sector and industry.

Question 10

Stages of the product life cycle

Answer 10

1. Embryonic stage: little demand, because unknown/little acceptance.
2. Growth stage: customer are entering. Demand increases rapidly.
3. Maturity stage: market demand peaks. Most customers bought it.
4. Decline stage: demand decreases due to the rapid technological change resulting in the emergence of superior alternative products.

Question 11

State-gate development funnel

Answer 11

Process by which multiple ideas are funnelled down to a single final idea.

It forces managers to make decisions so that resources are not spread too thinly over too many projects.

Question 12

What are two critical elements of any structured new product development effort?

Answer 12

Cross-functional teams

Right kind of leadership: to be managed effectively (lightweight vs. heavyweight leader).

Question 13

Lightweight team leader

Answer 13

A mid-level functional manager who has lower status than the head of the functional department. The lightweight team leader is not given control over human, financial, and functional resources.

Question 14

Heavyweight team leader

Answer 14

True project manager who has higher status within the organization. The heavyweight team leader is given primary control over key human, technological, and financial resources for the duration of the project.

Question 15

Skunk work

Answer 15

A task force. A temporary team that is created to expedite new product design and to promote innovation by coordinating the activities of functional groups.

The task force consists of members of R&D, Marketing, engineering, and manufacturing who are assigned to a separate facility, at a location isolated from the rest of the organization.

Question 16

New venture division

Answer 16

A self-contained, independent division given resources to develop a complete set of value-creating functions to manage a project from the beginning to the end.

Question 17

Difference ‘skunk work’ and ‘new venture division’

Answer 17

The skunk work is dissolved when the product is marketed.

The new venture division also takes responsibility for the product’s commercialisation.

Question 18

Three factors that shape organizational culture

Answer 18

Organization’s structure
The people
Property rights

Question 19

Information synergies

Answer 19

The knowledge building created when two or more individuals or subunits pool their resources and cooperate and collaborate across role of subunit boundaries.

Question 20

Boundary-spanning activity

Answer 20

The interaction of people and groups across the organizational boundary to obtain valuable information and knowledge from the environment to help promote innovation.

In complex organizations, employees working on one task or project may wish to obtain useful knowledge residing in other operating units. But, the employees may not know whether this information exists and where it might reside. IT, through knowledge management systems, allows employees to search their network for information.

Question 21

Facts IT

Answer 21

• IT gives lower-level employees more detailed and current knowledge.
• IT can produce information synergies.
• IT means that fewer levels of managers are needed to handle problem solving and decision making.
• IT can promote innovation through its effect on organizational culture: IT facilitates the sharing of beliefs, values, and norms.