Exam 3: Types and Patterns of Innovation

A CEO of a certain pharmaceutical company asked his consultant if it was a good idea to implement the s-curve model to predict when a technology would reach its limits.The consultant identified a limitation with the use of the model.Which of the following is the limitation identified by the consultant?

When a technology's performance is plotted against the amount of effort and money invested in the technology,it typically shows slow initial improvement,then accelerated improvement,then diminishing improvement.

When the first personal computers were introduced,Bill started using a spreadsheet program to maintain his accounts.Bill discovered that due to this new method his work had become much slower and that if he typed in the wrong data,it led to more mistakes.This illustrates that:

S-curves of technology diffusion are in part a function of the s-curves in technology improvement.

Explain what Schumpeter meant by the term creative destruction.

Which of the following is most clearly an example of process innovation?

When computers were first commercialized,Todd found it to be very confusing.He heard conflicting claims about which hardware to buy and about the various software systems available.He finally purchased something expensive,but found it to be unreliable.Very soon,Todd realized that companies had changed the models for the hardware and software they sold.This illustrates _____ phase of the technology evolution model described by Utterback and Abernathy.

Ron is highly skeptical about new ideas and products.He has not yet bought a satellite dish for his home because he is still unsure that it really works.Ron is also very worried about the expense of purchasing the satellite dish.According to this description,Ron:

Technologies always get the opportunity to reach their performance limits before being replaced by a new technology.

Dalton discovered that using garlic salt on a regular hamburger made the hamburger taste more like steak.He could then use a less expensive meat for the "smoked steak" sandwich that he sold.This is an example of a(n) _____ innovation.

Which of the following is true of technology diffusion?

Product innovations are more visible than process innovations.

As firms' routines and capabilities become more and more oriented around the dominant architecture,the firms become less able to identify and respond to a major architectural innovation.

According to the Utterback and Abernathy model,firms in the fluid phase avoid experimenting with different form factors or product features.

In the context of s-curves in technological improvement,as a technology begins to reach its inherent limits,the cost of each marginal improvement decreases.

The replacement of eyeglasses by contact lenses is an example of a(n):

Technology diffusion and information diffusion take the same amount of time.

A modular innovation significantly affects the overall configuration of a system.

S-curves in technology performance and s-curves in technology diffusion are fundamentally different processes.

Alpha Information Inc.is a firm that manufactures desktop computers and wireless network hardware components.The company is spending heavily on R&D to experiment with new designs for wireless networks instead of trying to refine how well they make their current wireless network hardware components.The firm is going through a period of ambiguity and anxiety.Alpha Information Inc.is in the: