Deck 17: Managing Technology and Innovation

Question 1

Adopters of new technologies who are classified as ________ are typically adventurous and willing to take risks.

A)innovators
B)early adopters
C)the early majority
D)the late majority
E)laggards

Answer 1

A

Question 2

Development projects are focused on marketing existing products or processes through mass media and social media.

Answer 2

False

Question 3

If a product champion lacks the power and financial resources to initiate innovations alone, he or she seeks sponsorship from an executive champion.

Answer 3

True

Question 4

In the context of managing, ________ is a new way of working that creates value.

A)invention
B)innovation
C)development
D)technology
E)application

Question 5

An innovation will spread faster if it

A)is highly similar to its predecessor.
B)is compatible with existing systems and procedures.
C)has more rather than less complexity.
D)requires a significant commitment to try or test.
E)is difficult to replicate or observe.

Question 6

One approach for measuring the competitive value of technologies is to categorize them as emerging, pacing, key, and base.

Question 7

Radical Returns Inc., a company that prepares individual tax returns, has finally agreed to utilize the IRS system that enables returns to be transmitted electronically rather than through mail. Almost every other firm in the United States is utilizing the system because it has been proven reliable. The company has accepted the new technology only after a number of threats of account withdrawal from key customers. For this reason, the company would be classified as

A)an innovator.
B)an early adopter.
C)part of the early or late majority.
D)part of the early or late minority.
E)a laggard.

Question 8

Of the adopters of new technologies, the members of the early majority

A)are more skeptical of technological change and approach innovation with caution.
B)include organizations to which others look for leadership.
C)tend to be isolated and highly conservative.
D)are critical to the success of a new technology.
E)tend to be the most adventurous and willing to take risks.

Question 9

Who among the following adopters of a new technology are extremely suspicious of innovation and change?

A)laggards
B)early adopters
C)innovators
D)the early majority
E)the early minority

Question 10

Bureaucracy, by its very nature, helps innovation to thrive.

Question 11

Who among the following adopters of a new technology are more skeptical of technological change and approach innovation with great caution?

A)the innovators
B)the early majority
C)the late minority
D)the early minority
E)early adopters

Question 12

Which statement about the technology life cycle is true?

A)A technology life cycle can be made up of many individual product life cycles.
B)The technology life cycle is represented by a V-shaped pattern.
C)The developments in a technology life cycle must always be big innovations.
D)The technology life cycle starts with a small change followed by increasingly larger ones.
E)Over the span of the technology life cycle, the technology gets more difficult to use.

Question 13

Broadly speaking, ________ can be thought of as the commercialization of science.

A)invention
B)innovation
C)development
D)technology
E)application

Question 14

________ is a change in method or technology that is a useful departure from previous ways of doing things.

A)Innovation
B)Integration
C)Reinforcement
D)Diffusion
E)Arbitration

Question 15

Which of the following groups is most likely to pay a premium for the latest and newest technology or product to come along and to champion it if it meets with their approval?

A)innovators
B)the late majority
C)the early majority
D)early adopters
E)laggards

Question 16

Product innovation is a change in the

A)way the outputs of an organization are produced.
B)way the organization creates and delivers value.
C)outputs the organization produces.
D)value of the product alone.
E)product focus of the organization.

Question 17

Oxy Systems Corp. was the first company to utilize a new device developed by Symbol Developers Inc. that enabled Oxy to locate previously undetected underground hot springs that could be tapped as geothermal heating sources. Oxy Systems tested the device and provided a testimonial to other organizations about the product. However, the other organizations were hesitant and decided to wait until the product was proven reliable. In this case, Oxy Systems can be classified as

A)an innovator.
B)a late adopter.
C)part of the early majority.
D)part of the late majority.
E)a laggard.

Question 18

Common ways of acquiring new technology include internal development, purchase, and licensing.

Question 19

Which of the following groups of adopters of a new technology includes well-respected opinion leaders or organizations to which others look for ideas and up-to-date technological information?

A)early adopters
B)the late majority
C)innovators
D)the early majority
E)laggards

Question 20

Even firms that are not technology oriented must pay attention to changing technology.

Question 21

________ technologies have proved effective, but they also provide a strategic advantage because not everyone uses them.

A)Base
B)Emerging
C)Key
D)Elevated
E)Pacing

Question 22

________ technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.

A)Base
B)Emerging
C)Key
D)Strategic
E)Pacing

Question 23

Todd is the owner of TodVac, a producer of high-performance commercial vacuum cleaners based in Texas. Todd knows that some companies use technology that has been proven over the years to efficiently create components very similar to the components in his vacuums. Unfortunately, Todd has never seen this technology and does not have a clue how it works. How should Todd go about learning how to improve his production with time-tested technology?

A)read journals to see how science is being applied to vacuum manufacturing
B)attend seminars on new technology available to manufacturers like TodVac
C)tour an Asian factory that uses this technology but does not compete directly with TodVac
D)ask TodVac's main competitor to share their proprietary knowledge with him
E)hire a CIO to lead a development team to create better manufacturing processes

Question 24

Which of the following is an advantage of technology leadership?

A)There is little risk involved.
B)The infrastructure cost is low.
C)There is little or no competition.
D)There is no need to develop complementary products.
E)The market development cost is low.

Question 25

The key factor that makes technology leadership attractive for some companies is the potential for

A)lower infrastructure costs.
B)conflict resolution.
C)higher profits.
D)lower market development costs.
E)lower risks.

Question 26

Which of the following is a first-mover advantage for a technology innovator?

A)being able to charge a premium price
B)letting someone else work out all the bugs
C)having an infrastructure ready to support the technology
D)being able to take advantage of complementary products
E)having a ready-made customer base

Question 27

Technological innovation can support a ________ strategy, in which an advantage comes from having a unique good or service for which customers are willing to pay a premium price.

A)concentration
B)vertical integration
C)low-cost
D)diversification
E)differentiation

Question 28

Which of the following is a disadvantage of technology leadership?

A)lower profit margins
B)reduced efficiency
C)loss of best market niches
D)infrastructure costs
E)establishment of entry barriers

Question 29

Which of the following categories refers to technologies that are still under development and thus unproved?

A)base technologies
B)emerging technologies
C)key technologies
D)initial technologies
E)pacing technologies

Question 30

Which of the following will best help an organization decide if the time is right to adopt a new technology?

A)calculating liability ratios
B)calculating leverage ratios
C)balancing the year-end budget
D)doing a cost-benefit analysis
E)taking an employee survey

Question 31

A ________ helps clarify the key technologies upon which an organization depends, often in terms of their competitive value.

A)product champion
B)technology audit
C)situational analysis
D)technical innovator
E)technological record

Question 32

Foxtrot Processing Corp. uses a new technology that allows it to produce standard goods in an economical way. In contrast, its competitors strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price. In this case, Foxtrot Processing has an advantage over its competitors because it has adopted a ________ strategy.

A)vertical integration
B)differentiation
C)low-cost
D)premium pricing
E)predatory pricing

Question 33

Lowland Corp. devised a Wi-Fi based home security system that was not very popular initially. However, a few years later, the technology was in high demand in the market. This is an example of

A)disruptive innovation.
B)contracted development.
C)upward innovation.
D)a product champion.
E)technology followership.

Question 34

Technology followership can be used to support

A)only a low-cost strategy.
B)only a differentiation strategy.
C)both low-cost and differentiation strategies.
D)scale economies but not economies of scope.
E)economies of scope but not scale economies.

Question 35

Zoe's company is considering adopting a new information technology. Because the information technology managers of the company are not yet familiar with the technology, they would most likely consult with someone from which of the following groups to help determine the suitability of technology?

A)innovators
B)early adopters
C)the early majority
D)the late majority
E)laggards

Question 36

The leaders of Plastishield Inc., a company that creates lightweight, durable plastic films to protect surfaces, want to build a reputation that makes them superior to other manufacturers of similar plastic film products. What action will help Plastishield effectively build their reputation to a higher level than everyone else?

A)leaving their successful, lightweight plastic films unchanged
B)establishing low switching costs for repeat customers
C)creating generic versions of plastics products their competitors already sell
D)obtaining patents for their new plastics products and procedures
E)saving money by dedicating less of the budget to research and development

Question 37

Bridget has to decide whether it is the right time to adopt a new technology for her department. Besides considering the potential benefits of the new technology, which of the following factors should have the most influence on her decision?

A)the prestige connected with using the technology
B)the likelihood of a better technology becoming available
C)the extent to which the technology will enhance her professional reputation
D)the technology skills of the people in her department
E)the entry barriers to using the technology

Question 38

The situation in which a new and unrefined technology swiftly takes over the market.is referred to as

A)disruptive innovation.
B)contract development.
C)upward innovation.
D)strategic maneuvering.
E)predatory invention.

Question 39

Cutting-Edge Carvers Inc. is a recently established online vendor that sells custom luxury products made from wood on automated lathes. Before opening for business, the company studied the problems that companies using a similar technology had experienced. Cutting-Edge Carvers was therefore able to avoid their costly mistakes. Cutting-Edge Carvers would be an example of a(n)

A)corporate entrepreneur.
B)product champion.
C)executive champion.
D)intrapreneur.
E)technology follower.

Question 40

Which of the following is a disadvantage of technology leadership?

A)lower profit margins
B)intense competition
C)loss of brand image
D)the need to educate buyers
E)the establishment of entry barriers

Question 41

Whereas ________ focuses on key and perhaps some pacing technologies, ________ seeks out pacing and emerging technologies.

A)scanning; auditing
B)auditing; scanning
C)benchmarking; auditing
D)scanning; benchmarking
E)benchmarking; scanning

Question 42

Katrina is part of a committee that must decide whether the company should adopt a new technology. Katrina's task is to compare the proposed technology to the technology that other companies in her industry use. This task is known as

A)scanning.
B)corporate espionage.
C)auditing.
D)a make-or-buy decision.
E)benchmarking.

Question 43

________ technologies are those that are commonplace in the industry; everyone must have them to be able to operate.

A)Base
B)Emerging
C)Strategic
D)Key
E)Pacing

Question 44

The technique of scanning in assessing external technological trends focuses on

A)improvising key base technologies.
B)current activities and technologies.
C)what can be done and what is being developed.
D)comparing the competitive advantages of two companies.
E)clarifying the technologies on which an organization depends.

Question 45

Nightingale Inc. has introduced a voice recognition machine system that enables machines to recognize a worker's voice and respond to commands. The company is yet to prove the full value of this product. However, organizations that have used the product appropriately have found that it efficiently speeds up various processes. Nightingale Inc.'s voice recognition machine system is an example of a(n)________ technology.

A)base
B)emerging
C)elevated
D)strategic
E)pacing

Question 46

The process of comparing an organization's practices and technologies to those of other companies is known as

A)benchmarking.
B)scanning.
C)situational analysis.
D)technological auditing.
E)strategic maneuvering.

Question 47

In assessing external technological trends, benchmarking and scanning are similar in that both are concerned with

A)what is being done currently.
B)what can be done and is being developed.
C)key technologies.
D)pacing technologies.
E)obtaining competitor's secrets.

Question 48

"We have rapidly grown into a top-tier provider of environmental services worldwide, and our clients expect us to employ top-tier talent and use top-tier technological innovation," said Lucien Dittlinger, Chief Technology Officer. "Therefore, over the next two years, our company is going to devise strategies for exploiting technological innovation. But, before we do this, we first have to gain a clear understanding of our current technology base, to determine which technologies offer the most competitive value." The first step that Lucien is describing is

A)a benchmarking study.
B)a gap analysis.
C)a SWOT analysis.
D)a technology audit.
E)an environmental scanning effort.

Question 49

Base technologies are those that

A)are not used by everyone.
B)are commonplace in the industry.
C)provide significant competitive advantage.
D)have not been proved useful.
E)are not known to everyone.

Question 50

Firms that are not technology oriented must develop new capabilities to survive. For example, when Amazon.com changed the face of e-retailing in the 1990s, traditional brick-and-mortar bookstores had to adapt quickly. To regain competitiveness, they had to ________, which wasn't always easy for them to do.

A)dramatically overhaul their information technology capabilities
B)eliminate all books from their product mix
C)build more stores
D)hire more sales staff
E)pay higher salaries to their employees

Question 51

"Bart, I'm in favor of developing technology internally if there is business value to keeping it proprietary," said Jerry Sterling, CFO of British Styles, to his product development manager. "However, in this case, I don't see the value. After all, developing the technology internally will probably ________," Jerry concluded.

A)make us dependent on other firms
B)not provide a competitive advantage
C)not allow its use to be exclusive to the firm
D)result in high coordination costs
E)require additional staff and funding for long periods

Question 52

Blue Moon Innovations has developed a grammar-checking program that is better able to account for the idiosyncrasies of the way humans use language. Publishers have found the program effective, but it still has not caught on within the business community. What type of technology is this?

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 53

"Some of our competitors are putting us to shame with their use of technology-not only out in the field, but at the current tradeshow," said Max. "I toured all of the tradeshow displays and took notes on what our competitors are doing, so that we can compare our practices and technologies with those of our competitors. I'll bet we can learn a thing or two." Max has been engaged in

A)benchmarking.
B)reverse mentoring.
C)a SWOT analysis.
D)a technology audit.
E)a gap analysis.

Question 54

Chirp is a small smartphone company that has developed an innovative security system for its phones. The technology has yet to prove its full value, but if it catches on, it may change the competitive landscape of the smartphone industry. What type of technology is this?

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 55

Charmed Power Inc. is working on a fast battery-recharging system that is still under development and has yet to be proved. Charmed Power's product is an example of a(n)________ technology.

A)base
B)key
C)emerging
D)improved
E)pacing

Question 56

Planetary Systems is developing a gas vapor detection system that will be able to tell when a fuel system is in the early stages of becoming inefficient in a manner needing adjustment and will then sound an alarm to notify the driver. The system is still in the trial stages and has not been proven to be effective. What type of technology is this?

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 57

Jamal, a bright entry-level chemist, recommended to his manager, "Sarah, we should develop and maintain a 'wiki'-a website to capture knowledge that will be lost when senior staff retire in the next five years." Sarah replied, "Jamal, I appreciate your enthusiasm. However, we just don't have the technical know-how to undertake your idea." Sarah's reluctance to implement Jamal's idea can be attributed to the lack of

A)chemistry expertise.
B)technological feasibility.
C)market responsiveness.
D)internal capabilities.
E)economic viability.

Question 58

"Darwin, in our budget for next year, I want to include two new state-of-the-art CNC machining stations. Technology is passing us by, and we need to see what is being developed in CNC technology," said Paul O'Brien, plant manager, to his production supervisor. "Go to a tradeshow. Read some technical journals. Visit some suppliers. I'll need some descriptive and budgetary information from you in two months." Darwin will be engaging in

A)reverse engineering.
B)a SWOT analysis.
C)gap analysis.
D)a technology audit.
E)environmental scanning.

Question 59

Volume controls on an MP3 player are an example of a(n)________ technology.

A)emerging
B)pacing
C)key
D)base
E)ancillary

Question 60

Although competitors understandably are reluctant to share their secrets, information trading for ________ is not uncommon and can prove highly valuable.

A)vertical integration
B)technological followership
C)corporate espionage
D)benchmarking
E)gradual diffusion

Question 61

________ firms' strategies are focused on deepening their capacity base through complementary technologies that extend rather than replace their current ones.

A)Defender
B)Laggard
C)Prospector
D)Contingent
E)Analyzer

Question 62

Linda has been asked to help her large company, Wave Breakers, obtain technology to allow outboard motors to run efficiently at all temperatures. Her company needs this technology immediately, but they also want to make sure they have full control of the technology. Currently only one company, Thermal Stroke, a small startup, has the technology Wave Breakers is seeking. What is Linda's best option for completing her task?

A)acquiring Thermal Stroke
B)licensing the technology from Thermal Stroke
C)developing the technology internally
D)contracting a company to create the technology
E)partnering with a competitor to develop the technology

Question 63

"Kaito, I agree with your recommendation to purchase the new instrument, even though we could develop and manufacture it internally. A purchase will be most ________, as long as you recognize that others will have it as well; in other words, it will not offer a ________," said Philippe Jerrard, operations manager.

A)cost-effective; time advantage
B)time-consuming; price advantage
C)time-consuming; time advantage
D)cost-effective; competitive advantage
E)time-consuming; competitive advantage

Question 64

The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself is referred to as a

A)trade-off decision.
B)licensing decision.
C)make-or-buy decision.
D)SWOT analysis.
E)benchmark analysis.

Question 65

Aeroquad Inc. is in the process of deciding whether to develop a new automatic guidance system for its quadcopters or to get it from another company that specializes in that area. This is an example of a

A)make-or-buy decision.
B)licensing decision.
C)trade-off decision.
D)SWOT analysis.
E)benchmark analysis.

Question 66

For which of the following reasons might a firm choose to trade technology?

A)to facilitate first-mover advantages
B)to avoid development costs
C)to build barriers to entry
D)to partner with competitors
E)to create diseconomies of scope

Question 67

"QuantumFind does not want to sell the technology, but QuantumFind is willing to allow us to legally use the technology for a fee," said Sheila Stone, sales professional, "and I would like to use the technology in our proposed project for SturdyBuilt Construction." Leon Jackson, Division Manager, replied, "OK. I'm fine with that. I will approve expenditure for a(n)________ fee."

A)processing
B)license
C)customs
D)patent
E)lading

Question 68

Tarik's business uses environmental databases that are readily available and cost-effective, but his vice president of operations thinks they need to develop a database for a new project. What would you advise them to do to make it the simplest, easiest, and most effective way to have that needed database?

A)Patent it.
B)Purchase it.
C)License it from others.
D)Form a joint venture.
E)Acquire the owner of the technology.

Question 69

Vital Vision Corp. is looking for a simple and cost-effective way of acquiring a commercially available new technology for its present venture. Which of the following methods should the company first consider for the purpose?

A)licensing the technology
B)developing the technology internally
C)purchasing the technology
D)buying the technology owner
E)creating a research partnership

Question 70

The exploding growth in piracy or fakery of patented pharmaceuticals, software, and other products has added new barriers to

A)economic viability.
B)organizational suitability.
C)market receptiveness.
D)competence development.
E)technological feasibility.

Question 71

"Kevin, we have the organization, the manpower, and the marketing to deliver the technology to our customers; however, we don't own the patent upon which the technology will be based," argued Houston. "O'Malley Group, the patent owner, is too small to commercialize any technologies. Significant effort will be required to convert the patent into a viable technology. Buying the patent or O'Malley Group would be too expensive. I recommend that, instead, we form a ________ to jointly develop the technology."

A)coalition
B)co-optation
C)franchise
D)purchase agreement
E)research partnership

Question 72

For years, Tiger Corp. wanted to develop a face recognition system that clients could buy to improve their security systems. The managers of the company evaluated the product's market potential, economic viability, and anticipated capability development, which were all very strong. However, Tiger Corp. was unable to make a successful product. The key factor that the company failed to adequately assess in making technology decisions was the product's technological

A)reliability.
B)ambidexterity.
C)variability.
D)feasibility.
E)agility.

Question 73

Selma has developed and patented a new process for recycling discarded tires. A multinational corporation has expressed an interest in buying her company in order to gain access to the technology and keep it exclusively for itself. Should Selma sell her company, the buyer will have acquired technology via

A)acquisition of the technology owner.
B)a joint venture.
C)a licensing agreement.
D)contracted development.
E)patent purchase.

Question 74

One advantage of developing technology within one's own company is the

A)optimal utilization of the company's resources.
B)cost effectiveness due to material innovations.
C)proprietary nature of the technology within the organization.
D)reduced requirement to hire additional staff.
E)ability to take plenty of time to develop a product right.

Question 75

________ firms have cultures that are the most outward-looking and opportunistic in their approach to technological innovation.

A)Defender
B)Laggard
C)Prospector
D)Contingent
E)Analyzer

Question 76

"Andrew, we have the lab facilities, the know-how, and the time to implement this new technology through ________. We can then patent it and keep it proprietary, even though it will take additional staff and funding," said Jill Phipps, lab manager, to Andrew Franks, general manager.

A)internal development
B)licensing
C)contracted development
D)franchising
E)research partnership

Question 77

In most situations, the simplest, easiest, and most cost-effective way to acquire new technology is to

A)purchase it.
B)develop it internally.
C)license it for a fee.
D)use a research partnership.
E)purchase the technology owner.

Question 78

________ is a factor that helps executives decide if there is a good financial incentive for attempting a technological innovation.

A)Technological feasibility
B)Market receptiveness
C)Economic viability
D)Organizational suitability
E)Competence development

Question 79

Managers of Grilled Snacks, a fast-food restaurant chain, visited Spectacular Sandwiches, a competitor. Spectacular Sandwiches has a system in which waiters use a cell phone to text orders directly to the kitchen. The two companies made an arrangement by which Grilled Snacks adopted the ordering system and, in turn, Spectacular Sandwiches adopted a food-preparation technique devised by Grilled Snacks. This scenario is an example of

A)technology trading.
B)licensing.
C)contracted development.
D)internal development.
E)research partnership.

Question 80

Answer Smart Inc. plans to make a new mobile phone that would use a retina scanner to unlock the phone. However, the company does not implement the plan as it realizes that the costs involved are too high. Which of the following factors while making a technology decision has Answer Smart Inc. taken into consideration?

A)economic viability
B)competence development
C)organizational suitability
D)market receptiveness
E)technological feasibility