Chapter 6 Innovation and Change PDF

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Chapter 6 - Innovation and Change 1. What is the term for the successful implementation of creative ideas in organizations? a. organizational change b. organizational innovation c. organizational creativity d. organizational development ANSWER: b 2. Josephine is a valuable employee to her company. She has found new ways to complete work processes that

have saved the company thousands of dollars. What makes Josephine so valuable to her company? a. synergistic use of resources b. ideation c. creativity d. organizational adaptation ANSWER: c 3. Creativity was needed to improve efficiency without raising costs at WestJet. Over the last few years, the company has implemented winglets and a bring-your-own-device policy across their fleet. What do these successful changes exemplify? a. corporate synergy b. organizational innovation c. assembly networking d. reverse engineering ANSWER: b 4. McDonald’s restaurants are involved in a long-term, worldwide movement to change consumers’ perceptions

of their products by selling food that is healthier. What is McDonald’s engaged in? a. organizational change b. reverse engineering c. market diversification d. product revitalization ANSWER: a 5. George was appointed president of a health devices company. Within a year the board of directors was very happy with George’s appointment. The company’s structure was transformed to a team structure. New suppliers were found. The culture became one of hard work and meeting goals. What did George bring to the company to please the board? a. organizational innovation b. organizational development c. organizational change d. organizational re-engineering ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change 6. When Gregg Steiner became the vice president for Pinxav, he knew the diaper-rash product manufacturer’s

sales were declining. At a trade show, Steiner was pitching the product and said, “If you’re not happy with the product, I will not only give you your money back—I’ll buy you our competitor’s product. I’ll buy you whatever other brand you want.” Suddenly, customers were interested, and they all pulled out their money. None of the customers ever took Steiner up on his offer. Steiner then decided to make it part of his business practice. What is this new guarantee an example of? a. corporate synergy b. organizational innovation c. assembly networking d. organizational networking ANSWER: b 7. TicketsNow.com tapped a market that Ticketmaster had neglected: it specialized in locating and securing

premium seating and tickets to sold-out events. What did the company use to locate and serve a profitable market? a. synergy b. ideation c. creativity d. organizational adaptation ANSWER: c 8. What must necessarily come before organizational innovation in the successful implementation of creative

ideas in organizations? a. synergy b. design competition c. resource development d. creativity ANSWER: d 9. The development of CDs was a source of which of the following to companies in the recording industry, just

as audiotapes and 8-track tapes had once been? a. a sustainable competitive advantage b. creativity re-engineering c. technological discontinuity d. technological replacement ANSWER: c 10. What is the term for the knowledge, tools, and techniques used to transform inputs into outputs? a. resource manipulation b. procedural innovation c. a transformation system Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change d. technology ANSWER: d 11. TRX Ltd. used to budget a large amount of expenditure for meetings where managers from across the

province would meet at head office. With the inception of phone conferencing the budget for meetings was cut substantially as managers were required to come to head office less frequently. With the inception of video conferencing, managers now never conduct meetings by phone and rarely meet at head office. What is this an example of? a. the technology process b. a technology pattern c. a technology cycle d. the technology continuum ANSWER: c 12. What is the shape of the typical innovation pattern that nearly all technology cycles follow? a. W-curve b. U-curve c. bell-

shaped d. S-curve ANSWER: d 13. Which of the following best identifies where in the typical S-curve pattern of innovation increased effort— that is, money, research and development, etc.—brings only small improvements in technological performance? a. at the beginning of the cycle b. in the middle of the cycle c. at the end of the cycle d. throughout the entire cycle ANSWER: d 14. Where in the typical S-curve pattern of innovation will small amounts of effort result in significant increases

in performance? a. during the growth stage of the cycle b. at the midpoint of the cycle c. at the end of the cycle d. throughout the cycle ANSWER: b 15. Which of the following will an organization be able to achieve in an ongoing series of technology cycles? a. satisfaction of more customers with fewer

resources b. creation of a competitive advantage Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change c. control of variable costs d. elimination of the product-innovation process ANSWER: b 16. In the typical S-curve pattern of innovation, increased effort—that is, money, research and development, etc. —brings only small improvements in technological performance when the performance limits of the technology are reached. At what point in the cycle does this occur? a. during the introductory stage of the cycle b. at the break-even point of the cycle c. during the maturity stage of the cycle d. at the end of the cycle ANSWER: d 17. At what point in the typical S-curve pattern of innovation is a company likely to be when significant improvements in performance can be gained only through radical new designs or new performance-enhancing materials? a. It is at its break-even point. b. It is at the problem identification stage of the innovation cycle. c. It is at the end of the innovation cycle. d. It is at either the beginning or end of the innovation cycle. ANSWER: c 18. A technology cycle occurs whenever there are major advances or changes in which particular aspects of a field or discipline? a. the human, technical, and conceptual skills needed b. the structure or personnel requirements c. the internal environment resources d. the knowledge, tools, and techniques ANSWER: d 19. What is the term for patterns of innovation over time that can create a sustainable competitive advantage? a. innovation maps b. organization development c. results-driven change d. innovation streams ANSWER: d 20. Through which of the following processes does an innovation stream move from one technology cycle to

another? a. technological substitution b. technological variation Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change c. technological continuity d. technological selection ANSWER: a 21. In terms of innovation streams, what occurs when customers purchase flat-screen computer monitors to replace older, bulkier monitors? a. technological substitution b. technological expansion c. re-engineering d. demarketing ANSWER: a 22. When DaimlerChrysler learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which period of the innovation stream did it enter when it made this change? a. technological adaptation b. the era of dominant design c. the technological growth stage d. discontinuous change ANSWER: d 23. Which phase of a technology cycle is characterized by technological substitution and design competition? a. technological adaptation b. the era of dominant design c. the technological growth stage d. discontinuous change ANSWER: d 24. What is the term for the purchase of new technologies to replace older ones? a. adaptive change b. design replacement c. technological substitution d. dominant design ANSWER: c 25. Which of the following characterizes discontinuous change in an innovation stream? a. synergy b. technological substitution c. incremental change d. empathetic design ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change 26. During which phase of a technology cycle do companies innovate by lowering the cost and improving the

functioning and performance of the dominant design? a. the technological discontinuity phase b. the discontinuous change phase c. the process implementation phase d. the incremental change phase ANSWER: d 27. What are the phases of a technology cycle within an innovation stream in order from beginning to end? a. incremental change, discontinuous change, dominant design, and technological

discontinuity b. discontinuous change, incremental change, technological discontinuity, and dominant design c. dominant design, discontinuous change, incremental change, and technological discontinuity d. technological discontinuity, discontinuous change, dominant design, and incremental change ANSWER: d 28. The auto industry has been perfecting the internal combustion engine (ICE) for some 120 years. Billions of dollars of work is ongoing at all of the auto companies on alternatives to ICEs. A cooperative program between the Big Three and government to replace ICEs with electric engines has been operating since 1993. What is the internal combustion engine (ICE) an example of? a. a dominant design b. design dichotomy c. a synergistic design d. a differential design ANSWER: a 29. October 15, 2013 was known as Tablet Tuesday. Several large technology companies launched their next generation of tablets. Microsoft introduced its second tablet. Apple’s new iPad promised to be sleeker and faster. Nokia introduced its first tablet. What occurred on this date with these companies and their new product introductions? a. technological discontinuity b. design competition c. technology cycle d. innovation streams ANSWER: b 30. Titleist has been manufacturing golf balls for several years, but each year it comes out with new designs.

Titleist developed the new Pro V1 golf ball, with a solid core that is designed to benefit players with high swing Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change speeds. Which term describes how this manufacturer remains competitive? a. technological discontinuity b. discontinuous change c. dominant design d. incremental change ANSWER: d 31. What do companies need to excel at managing in order to successfully manage innovation streams? a. sources of innovation b. innovation during synergistic change c. reciprocity d. environmental design issues ANSWER: a 32. At Deloitte’s Montreal offices, upper management encourages collaboration among employees. Throughout

the organization, there are flex spaces and social spaces to facilitate this collaboration. What type of workplace culture does this exemplify? a. creative work environment b. innovative society c. homogeneous work environment d. participative work team ANSWER: a 33. Malcolm believes people produce best when they are exposed to some form of pressure. He changed the goals of his design team from being easily attainable to being of much higher standard and needing completion within shorter time frames. What component of a creative work environment did Malcolm introduce to the design team? a. challenging work b. mechanistic structures c. freedom d. autocratic leadership ANSWER: a 34. Donald feels his design team could be more creative if they met somewhere other than the lunch room where

others are constantly coming and going. Donald created space in his large office where the team could meet without interruptions. After this move the team meetings were much more productive. What component of a creative work environment did Donald use to encourage greater creativity in his team? a. regular brainstorming meetings b. training c. employee profit-sharing d. the removal of organizational impediments Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change ANSWER: d 35. Calgary-based DIRTT Environmental Services is exploring new products and markets through the development of interior construction and design products in its plants in British Columbia, Arizona, and Georgia. What can DIRTT do to jump-start this innovative process? a. It can manage flow through the use of Gantt charts. b. It can concentrate on dominant design and ignore incremental design. c. It can engage in creative reciprocity. d. It can establish creative work environments. ANSWER: d 36. Which of the following is an organizational impediment to creativity in a work environment? a. internal synergies b. organic management structures c. change culture d. power struggles ANSWER: d

Narrative 6-1 Unverferth Manufacturing is a manufacturer and supplier of innovative agricultural equipment. Recently it began developing a new 12-row strip-till subsoiler that is ideal for cotton production. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. 37. Refer to Narrative 6-1. What approach to innovation did Unverferth use? a. the compression approach b. the experiential approach c. the technological substitution approach d. the generational change approach ANSWER: b 38. Refer to Narrative 6-1. What did Unverferth use to produce the best possible tiller before introducing it to the market? a. service development b. process duplication c. design iteration d. design compliance ANSWER: c 39. Which approach to innovation assumes that innovation is occurring within a highly uncertain environment

and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding? a. the compression approach Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change b. the experiential approach c. the technological substitution approach d. the generational change approach ANSWER: b 40. Which of the following is a part of the experiential approach to innovation? a. distant management b. testing c. independent work d. initiative conversations ANSWER: b 41. Sears Canada is working to revitalize a tired national brand. It recently tested a new logo and store layout in stores in Thornhill and Burlington, ON, before rolling the changes out nationally. Which of the following, therefore, was used to develop Sears Canada’s new store layouts? a. server development b. process duplication c. design iteration d. design compliance ANSWER: c 42. What is the best reason to use milestones in the experiential approach to innovation? a. Milestones serve to eliminate manufacturing bottlenecks. b. Milestones shorten the innovation process. c. Milestones create incrementally sustainable advantages. d. Milestones virtually eliminate problems associated with the control function of

management. ANSWER: b 43. What is the first aspect for managing innovation during discontinuous change? a. design iteration b. budgeting c. establishment of a dominant design d. involvement of suppliers ANSWER: a 44. Which statement describes the outcome from the use of milestones in the experiential approach to innovation? a. The use of milestones results in the general chaos that follows technological discontinuities. b. The use of milestones lengthens the innovation process. Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change c. The use of milestones maintains the status quo. d. The use of milestones lets an organization know when to take corrective action. ANSWER: d 45. Jennifer is expanding her Canadian company by penetrating the Asian market. She brings together a task

force comprising managers from marketing, finance, and operations to determine how to be successful in this market. What kind work team did Jennifer create to expand into Asia? a. milestone team b. innovation team c. multifunctional team d. experiential team ANSWER: c 46. Which approach to managing innovation assumes that innovation is a predictable process made up of a

series of steps and that condensing the time it takes to complete those steps can speed up innovation? a. compression b. milestones c. dialectical d. generational ANSWER: a 47. ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing wanted to change the way it supplied information to its dealers by implementing a website, it contacted ARI. ARI provided a solution that allowed Unverferth to replace its paper catalogues with catalogues on CDs and to create a website. Aided by supplier involvement, Unverferth was able to eliminate costly paper catalogues and gain the ability to provide up-to-the-minute information to its dealers. Which approach to innovation does this incremental change exemplify? a. generational b. experiential c. milestones d. compression ANSWER: d 48. Which innovation management approach is best in fairly certain environments, during periods of

incremental change, and when the goals are lower costs and incremental improvements in the performance and function of the existing technological design? a. experiential b. compression c. prototypical d. milestones ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change 49. What are the goals of the compression approach to innovation? a. speed, lower costs, and incremental change of dominant design b. the development of milestones and the comparison of actual milestones with

forecasts c. the establishment of a dominant design and speed d. absolute-time management and the creation of a dominant design ANSWER: a 50. What is the first step in the compression approach to innovation? a. overlapping of the individual steps b. planning c. supplier involvement d. granting of autonomy ANSWER: b 51. Which of the following is an important part of both the compression approach and the experiential approach to innovation? a. multifunctional teams b. design iterations c. milestones d. synergistic processes ANSWER: a 52. What is said to have occurred when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version? a. a milestone b. an intuitive change c. a generational change d. a coercive change ANSWER: c 53. Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to

speed up the design cycle for its 12-row subsoiler. Which aspect of the compression approach to innovation would the use of this software assist? a. planning b. supplier involvement c. shortening time of individual steps d. multifunctional teams ANSWER: c 54. Backward compatibility is an important consideration for software users who are using an accounting Copyright Cengage Learning. Powered by Cognero.

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Chapter 6 - Innovation and Change program to facilitate th...