Value Creation

Question 1

What is organizational resilience?

Answer 1

Refers to an organization’s response to damage and it highlights the ability to recover and grow under uncertainty, crisis, and emergency.

Question 2

What is competitive advantage?

Answer 2

When a company obtains a set of traits that enable it to work better than its competitors, it gains a competitive advantage. The competitive advantage is shown when a firm’s actions are more profitable than its competitors or when it beats them in terms of other essential incomes.

Question 3

What is economic sustainability?

Answer 3

It relates to the growth, development, and productivity of the company. It means that we should optimize the usage of resources to create long-term sustainable values in our organization.

Question 4

What is environmental sustainability?

Answer 4

It refers to the maintenance of natural capital; for this reason, firms should take care of waste emissions and use renewable and non-renewable resources very carefully.

Question 5

What is social sustainability?

Answer 5

It is a technique for developing sustainable locations that encourage wellness by understanding people’s requirements of their living and working places. It relates to the physical and social infrastructures, social amenities, and citizen participation mechanisms.

Question 6

What is innovation?

Answer 6

Innovation is the process of bringing an invention, creation, or insight regarding a novel device, process, or system to its first successful commercial use is referred to as innovation. As a result, it can be used to new goods, processes, and services, as well as new markets, supply sources, and organizational structures.

We can define innovation as any change to a business product, service, or process that adds value (the process by which new ideas are developed, tested, and brought to the market by businesses).

Question 7

Innovation is not just about “big bangs”; it is about anything new that has impact. True or False

Answer 7

True

Question 8

What is the difference between invention and innovation?

Answer 8

Invention is an event when a new idea for a product, process or service is thought up for the first time. Innovation, on the other hand, is the process that moves from the original invention to its first successful commercialization.

Question 9

Regarding innovation:
From “Decisions made based on intuition and seniority” to (…):

Answer 9

Decisions made based on testing and validating

Question 10

Regarding innovation:
From (…) to “Testing ideas is cheap, fast, and easy”:

Answer 10

Testing ideas is expensive, slow, and difficult

Question 11

Regarding innovation:
From “Experiments conducted infrequently by experts” to (…):

Answer 11

Experiments conducted constantly, by everyone

Question 12

Regarding innovation:
From (…) to “Challenge of innovation is to solve the right problem”:

Answer 12

Challenge of innovation is to find the right solution

Question 13

Regarding innovation:
From “Failure is avoided at all cost” to (…):

Answer 13

Failures are learned from, early and cheaply

Question 14

Regarding innovation:
From (…) to “Focus is on minimum viable prototypes and iteration after lunch”:

Answer 14

Focus is on the “finished” product

Question 15

What is an experimentation?

Answer 15

Experimentation can be defined as an iterative process of learning what does and does not work. The goal of a business experiment is actually not a product or solution; it is learning, the kind of learning about customers, markets, and possible options that will lead you to the right solution.

Question 16

What are the two types of experiments?

Answer 16

• Convergent experiments are best suited for learning that eliminates options and converges on a specific answer to a clearly defined question (e.g., Which of these three designs is preferred by the customer?).
• Divergent experiments are best suited for learning that explores options, generates insights, asks multiple questions at the same time, and, when done right, generates new questions to explore in the next iterative stage.

Question 17

What do the convergent and divergent experiments have in common?

Answer 17

• Increases knowledge
• Tests assumptions
• Looks outside for answers
• Requires willingness to learn versus decide

Question 18

To innovate successfully, we only need divergent experiments. True or False

Answer 18

False

To innovate successfully, you will need both convergent and divergent experiments at different stages and in different parts of your business

Question 19

What is disruptive innovation?

Answer 19

The concept of disruptive innovation is not about a breakthrough technology. Instead, it involves the introduction of a simpler, more affordable product or service but with performance attributes that fall below those valued by established customers and with a small market opportunity.

Question 20

What are sustaining technologies?

Answer 20

Sustaining technologies are those that foster improvement along performance dimensions valued by established customers.

Incumbent firms often ignore a disruptive innovation and continue serving established customers with innovations on a sustaining technology’s trajectory. While incumbents ignore the disruptive innovation, firms with the disruptive innovation take root in an undemanding segment of the market, gain experience, improve their products and begin to move up market.

Question 21

What is open innovation?

Answer 21

Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation, respectively.

Question 22

What is collaborative innovation?

Answer 22

Collaborative innovation is about how people with collective vision interact with each other, how they offer ideas and intuitive thinking and how they share knowledge and experience for a common goal. It is a value co-creation process that not only results in a desired outcome for all collaborators but simultaneously co-elevates the capabilities of entities.

Question 23

Explain the balance between core and crowd pillar.

Answer 23

The final rebalancing is between the core (organizing around centralized knowledge and processes internal to an organization) and the crowd (organizing to take advantage of a vast, global, digitally connected crowd of talent and the new technologies of extreme decentralization).

Question 24

In the past, companies hired organizing internal workforces of experts and skilled laborers. Work, and especially creative work, happened inside the organization. Nowadays (…)

Answer 24

Companies discovered that they can find work with expertise outside the organization in a cost-effective way.

Question 25

Regarding value:
From “Value proposition defined by industry” to (…):

Answer 25

Value proposition defined by changing customer needs

Question 26

Regarding value:
From (…) to “Uncover the next opportunity for customer value”:

Answer 26

Execute your current value proposition

Question 27

Regarding value:
From “Optimize your business model as long as possible” to (…):

Answer 27

Evolve before you must, to stay ahead of the curve

Question 28

Regarding value:
From (…) to “Judge change by how it could create your next business”:

Answer 28

Judge change by how it impacts your current business

Question 29

Regarding value:
From “Market success allows for complacency” to (…):

Answer 29

“Only the paranoid survive”

Question 30

What are the 2 general dimensions for growth?

Answer 30

New versus existing products and markets.

Question 31

What are the 3 ways out of a shrinking market?

Answer 31

1. Find new customers to buy your same offering. This can be extremely difficult in an era where markets are already relatively flat and open.
2. Continue serving your same customers but to adapt your value proposition (new value) to stay relevant to their changing needs. Adapting its value proposition requires a business to be willing to depart from what has brought it success in the past.
3. In some cases, a third route out of a shrinking market may be possible with both new value and new customers. Usually, this may come when a dramatic shift in the value proposition succeeds in capturing a new market of customers.

Question 32

What is the Value Proposition Roadmap?

Answer 32

The Value Proposition Roadmap is a tool that any organization can use to assess and adapt its value proposition for its customers. You can use it to identify new and emerging threats as well as new opportunities to create value for your customers

Question 33

What are the 6 steps of the Value Proposition Roadmap?

Answer 33

1. Identify key customer types by value received
2. Define current value for each customer
3. Identify emerging threats
4. Assets the strength of current value elements
5. Generate new potential value elements
6. Synthesize a new forward-looking value proposition

Question 34

What are the 2 elements in the value proposition canvas?

Answer 34

• Customer profile
• Value map

Question 35

Describe the elements in the customer profile element of the value proposition canvas.

Answer 35

• Jobs: describe the jobs the customers are trying to get done. Jobs can be functional, social, or emotional.
• Pains: which annoy customers what can get a job done. Pains are negative outcomes that customers hope to avoid related to perform a job.
• Gains: which describe how customers measure the success of a job. Gains are positive outcomes that customers hope to achieve (concrete results)

Question 36

Describe the elements in the value map element of the value proposition canvas.

Answer 36

• Products and services the value proposition builds on.
• Pain relievers: describe in which way these products, services, and features are pain relievers, how they eliminate, reduce, or minimize pains customers care about. Making their life easier.
• Gain creators: how the product or service creates customer gains and how it offers added value to the customer.