Deck 8: Managing Innovation and New Industrial Product Development

Question 1

Induced strategic behavior relates primarily to major types of innovations.

Answer 1

False

Question 2

A disruptive innovation targets demanding, high-end customers with better performance than was previously available.

Answer 2

False

Question 3

Product championing refers to the process of creating or adopting an idea for an innovation and actively creating momentum for the project.

Answer 3

True

Question 4

Creators of successful product portfolios emphasize planning rather than experimentation or improvisation.

Question 5

Many business marketing strategists believe that firms should focus on product families instead of single products to improve planning.

Question 6

Research has shown that creators of successful product portfolios do not invest in one version of the future but use several low-cost probes to create options.

Question 7

Improvisation involves activities in which the design and execution of actions approach convergence with each other in time.

Question 8

Cross-functional teams appear to work best when the products are familiar, such as product modifications.

Question 9

"Lead users" are consistent early adopters of new technologies.

Question 10

Induced strategic behavior corresponds to deliberate strategies while autonomous strategic behavior gives rise to emergent strategies.

Question 11

Research and development is the creation of the know-how and the know-why of new materials and technologies that eventually translate into commercial development.

Question 12

Research has shown that the three factors that drive a firm's new product performance are the quality of the firm's new-product-development process, the resource commitments made to new product development, and the new product strategy.

Question 13

Breakthrough projects center on incremental product enhancements, incremental process improvements, or incremental changes on both dimensions.

Question 14

A detailed market research study and a preliminary business/financial analysis is an example of predevelopment proficiency.

Question 15

New product ventures require systematic thought.

Question 16

Platform projects create the design and components that are shared by a set of products.

Question 17

Competitors are less motivated to react to a new production introduction when the market is experiencing a high rate of growth.

Question 18

All development projects center on either improving the manufacturing process or improving product, but not both.

Question 19

Derivative projects establish new core products and new core processes that differ fundamentally from previous generations.

Question 20

For well-known markets and technologies, a compression strategy speeds development.

Question 21

​In today's fast paced product development, it is important for managers to prevent time pacing.

Question 22

Identify the correct statement(s) concerning differences between induced strategic behavior and autonomous strategic behavior:

A)Induced behavior will rely on the firm's current concept of strategy for its rationale while autonomous behavior necessitates active championing.
B)Autonomous behavior will appear haphazard in nature, when compared to induced behavior.
C)While induced behavior will normally exhibit a creeping commitment toward a particular strategy, autonomous behavior can often benefit from existing administrative mechanisms and commitment.
D)All of the answer choices are correct.
E)Both induced behavior will rely on the firm's current concept of strategy for its rationale while autonomous behavior necessitates active championing and autonomous behavior will appear haphazard in nature, when compared to induced behavior.

Question 23

With respect to induced strategic behavior, please identify the incorrect statement. Induced strategic behavior:

A)exhibits communication that is consistent with the organizational work flow pattern.
B)is generally observed in conjunction with major types of innovations for new markets.
C)typically involves formal organizational channels related to decision making.
D)follows established administrative procedures.
E)is characterized by well-defined roles for the participants in the strategy formulation process.

Question 24

A common motor in all Black & Decker hand tools provides an example of which type of commercial development project?

A)platform project
B)breakthrough project
C)research and development project
D)derivative project
E)none of the answer choices

Question 25

Computer disks and fiber-optics cable each created a new product category. The type of commercial project that created these products would be classified as a:

A)platform project.
B)breakthrough project.
C)research and development project.
D)derivative project.
E)none of the answer choices

Question 26

_____ is a strategy for competing in fast-changing markets by creating new products at predictable intervals.

A)Time pacing
B)Patching
C)Routinization
D)Quality function deployment
E)Improvisation

Question 27

Within the context of autonomous strategic behavior, product championing refers to the process of:

A)defining organizational goals more clearly.
B)actively promoting an existing product for an existing market.
C)creating or adapting an idea for an innovation and actively creating momentum for the project.
D)specifying organizational roles to be assumed as strategic alternatives are mapped out.
E)attempting to maintain the status quo in the face of changing market conditions.

Question 28

​A disruptive strategy can benefit a firm.

Question 29

The type of development project that centers on incremental product enhancements (for example, new feature), incremental process improvements (for example, a lower-cost manufacturing process), or incremental changes in both dimensions is referred to as a:

A)platform project.
B)breakthrough project.
C)research and development project.
D)derivative project.
E)none of the answer choices

Question 30

Concerning the management of product innovation, which of the following statements is incorrect? The successful management of product innovation:

A)is vital to the long-term health of an industrial company.
B)requires the firm to take risks.
C)is properly characterized as a rational, deliberate, and analytical process.
D)should lead to a stream of attractive products.
E)None of the answer choices.

Question 31

Lead user projects are conducted by cross-functional teams that include four to six managers from marketing and technical departments.

Question 32

A feature-enhanced or cost-reduced Canon fax machine provides an example of which type of development project?

A)platform project
B)breakthrough project
C)research and development project
D)derivative project
E)none of the answer choices

Question 33

​There is a danger of undershooting but never of overshooting the needs of mainstream customers.

Question 34

_____ involve the creation of the know-how and know-why of new materials and technologies that eventually translate into commercial development.

A)Platform projects
B)Breakthrough projects
C)Research and development projects
D)Derivative projects

Question 35

In contrasting induced strategic behavior with autonomous strategic behavior, which of the following statements is incorrect?

A)Induced behavior corresponds to deliberate strategies while autonomous behavior gives rise to emergent strategies.
B)Autonomous behavior stems from the organization's existing concept of strategy while induced behavior will eventually be integrated into the firm's concept of strategy.
C)The two types of behavior cannot be meaningfully separated and discussed.
D)While autonomous behavior will initially rely on an informal network of support, induced behavior will draw support from formal organizational channels.
E)Both induced behavior corresponds to deliberate strategies while autonomous behavior gives rise to emergent strategies and autonomous behavior stems from the organization's existing concept of strategy while induced behavior will eventually be integrated into the firm's concept of strategy.

Question 36

Please identify the incorrect statement concerning autonomous strategic behavior. Autonomous strategic behavior:

A)normally relies on the emergence of an informal network of participants.
B)exhibits communication flows that depart from the formal organizational work flow pattern.
C)is analogous to entrepreneurial activity.
D)is generally activated by an individual manager defining a market need that diverges from the organization's existing concept of strategy.
E)None of the answer choices.

Question 37

Commercial development projects that establish new core products and new core processes that differ from those of previous generations are referred to as:

A)platform projects.
B)breakthrough projects.
C)research and development projects.
D)derivative projects.
E)none of the answer choices

Question 38

_____ involves activities in which the decision and execution of strategy actions approach convergence with each other in time.

A)Time pacing
B)Patching
C)Routinization
D)Quality function deployment
E)Improvisation

Question 39

​In order for a firm to unite all of its people to achieve corporate objectives, it is important to eliminate autonomous behavior.

Question 40

Commercial development projects that create the design and components that are shared by a set of products are referred to as:

A)platform projects.
B)breakthrough projects.
C)research and development projects.
D)derivative projects.
E)none of the answer choices

Question 41

Rapid product development offers a number of competitive advantages. Research indicates that the _____ strategy increased the speed of product development for products that had predictable designs and that were targeted for stable and mature markets.

A)induced
B)experiential
C)autonomous
D)compressed
E)funnel

Question 42

Special insights into innovation management can come from examining the rate at which products are improving and customers can use the improvements. These insights are captured in:

A)the disruption innovation model.
B)the supply chain management model.
C)the derivative projects model.
D)the value network.
E)the technology life cycle adoption model.

Question 43

Products that share a common platform but have different specific features and enhancements that are required for different sets of consumers constitute:

A)a product family.
B)a product market.
C)derivative products.
D)a product consideration set.
E)heavyweight products.

Question 44

This strategy for the new product development process views product development as a highly uncertain path and speed comes from multiple design iterations, extensive testing, and a powerful leader who can keep the product teams focused. This describes the _____ strategy.

A)induced
B)experiential
C)autonomous
D)compressed
E)funnel

Question 45

Examples of low-cost probes or experiments in product development include which of the following?

A)Development of experimental products for new markets.
B)Conducting regular planning sessions on the future.
C)Increase understanding of future customer needs by entering into strategic alliances with leading-edge customers.
D)All of the answer choices.

Question 46

Successful product innovators in the computer industry:

A)emphasize real-time communication within new product development teams and across product teams.
B)do not invest in any version of the future but, instead, use a variety of low-cost probes to create many options for the future.
C)carefully manage the transition between current and future projects.
D)all of the answer choices

Question 47

A benchmarking study sought to uncover the critical success factors that drive a firm's new product performance. The results indicate that successful firms:

A)center development efforts on clearly-defined market and technology domains.
B)seldom "kill" a project once the new product development process has been initiated.
C)emphasize low-price strategies to penetrate a mass market.
D)all of the answer choices.

Question 48

"Lead users" are characterized as important sources of new product ideas because they:

A)have needs that will be general in the marketplace in the future.
B)represent influential buying organizations.
C)are consistent early adopters of new technologies.
D)all of the answer choices

Question 49

Successful companies employ a high quality new product development process. Among high performing firms,

A)the new product process was flexible-certain stages could be skipped in line with the nature and risk of a particular project.
B)tough project Go/Kill decision points are included in the process and the Kill option is actually used.
C)market and technical assessments are conducted before projects move into the development phase.
D)all of the answer choices.

Question 50

A _____ represents a product or service that is not as good as currently available alternatives, but that is typically simpler and less expensive.

A)sustaining innovation
B)disruptive innovation
C)a breakthrough innovation
D)None of the answer choices.

Question 51

A _____ targets demanding, high-end customers with better performance than what was previously available.

A)sustaining innovation
B)disruptive innovation
C)a new market innovation
D)None of the answer choices.

Question 52

Which of the following characteristics is true of induced strategic behavior?

A)Communication is consistent with organizational flow.
B)An informal network assesses technical and market merit.
C)An individual manager defines a market need that diverges from the organization's concept of strategy.
D)All of the answer choices.

Question 53

The use of a product-family focus in planning should include which of the following?

A)Close interfunctional working relationships.
B)A short-term view of technology strategy.
C)A year-by-year commitment of resources.
D)All of the answer choices.

Question 54

For a low-end disruptive innovation strategy to work, which of the following requirements must be met?

A)There needs to be customers at the low end of the market who are eager to purchase a "good enough" product for a lower price.
B)The company must be able to create a business model to make profits at a discount price.
C)Both there needs to be customers at the low end of the market who are eager to purchase a "good enough" product for a lower price and the company must be able to create a business model to make profits at a discount price.
D)None of the answer choices.

Question 55

Competitors are strongly motivated to react to new product introductions in their market when:

A)the market is experiencing a low rate of growth.
B)the new product represents a major threat to their market.
C)the new product targets a niche markets.
D)all of the answer choices.

Question 56

This strategy for the new product development process views product development as a predictable series of steps and speed comes from carefully planning these steps and shortening the time it takes to complete each step. This describes the _____ strategy.

A)induced
B)experiential
C)autonomous
D)compressed
E)funnel

Question 57

Speed is becoming an important strategic weapon, particularly in high-technology markets. Research indicates that the _____ strategy increased the speed of product development for markets characterized by rapidly evolving technology and unpredictable patterns of competition.

A)induced
B)experiential
C)autonomous
D)compressed
E)funnel

Question 58

New products ideas flow from:

A)top management who know the company's strengths and weaknesses.
B)salespersons who are close to customer needs.
C)channel members.
D)all of the answer choices.

Question 59

Which of the following is NOT a type of development project?

A)Derivative.
B)Platform.
C)Breakthrough.
D)Research and development.
E)Market capital.

Question 60

The move toward a product family perspective requires:

A)a long-term view of technology strategy.
B)an isolated R&D function that free to create.
C)a multiple-year commitment of resources.
D)both a long-term view of technology strategy and an isolated R&D function that free to create.
E)both a long-term view of technology strategy and a multiple-year commitment of resources.

Question 61

New products developed and designed to meet foreign requirements and targeted at world or nearest-neighbor export markets is enhanced by firms holding an____________________orientation.

Question 62

Successful new product creation is a collective achievement that requires the energy and commitment of multiple functions in the organization. Often, however, managers who represent different functional areas hold sharply different views concerning the course that product development should take. Discuss the source of this conflict.

Question 63

What are the differences between a sustaining and disruptive innovation? Explain the differences in creating new-growth businesses represented by sustaining innovations, low-end disruptions, and new market disruptions.

Question 64

Research has isolated certain determinants of new product success in the business market. What factors are most important in determining the success of a new industrial product?

Question 65

A firm that lead customers where they want to go before the customers actually know it themselves is employing:

A)the lead user method.
B)the new product development process.
C)time pacing.
D)a discontinuous innovation.

Question 66

According to research, major drivers of a firm's new product performance include:

A)Resource commitment.
B)Profitability relative to competition.
C)Success rate of new products.
D)All of the answer choices.

Question 67

Important dimensions of the new product development process include:

A)technical knowledge.
B)predevelopment proficiency.
C)market knowledge.
D)All of the answer choices.

Question 68

For a new-market strategy innovation strategy to work, which of the following requirements need to be met?

A)The company must be able to create a business model to make profits at a discount price.
B)Present customers need to go to an inconvenient location to use the product or service.
C)Both the company must be able to create a business model to make profits at a discount price and present customers need to go to an inconvenient location to use the product or service.
D)Neither the company must be able to create a business model to make profits at a discount price nor present customers need to go to an inconvenient location to use the product or service.

Question 69

A small number of highly influential and high-volume buying organizations that are consistent early adopters of new technologies that deserve special attention are known as ____________________.

Question 70

Research indicates that the most significant and profitable innovations that many leading-edge firms have introduced in the past decade emerged from an informal championing effort rather than from a highly-structured planning system. What implications does this raise for structuring the new product development process, for motivating and rewarding employees, and for nurturing creativity and risk-taking?

Question 71

Which is NOT a determinant of new product success?

A)Compression strategies
B)Predevelopment
C)Risk avoidance
D)Synergy
E)All of the answer choices

Question 72

Compared with induced strategic behavior, autonomous or____________________initiatives are more likely to involve a communication process that departs from the regular work flow and the hierarchical decision-making channels.

Question 73

Consider this position taken by Tom Peters in Thriving on Chaos: "You must become what I call an executive champion-a nurturer, protector, facilitator, and interference runner for as many energetic champions as you can induce to sally forth." Compare and contrast induced versus autonomous strategic behavior and describe the role that the product champion assumes in new product development.

Question 74

An organization member who creates, defines, or adopts an idea for an innovation and is willing to assume significant risk to successfully implement the innovation is known as a____________________.

Question 75

Kathleen Eisenhardt argues that in fast-paced high-technology markets, "strategy is a video game." Strategic decision making is often described as a rational and deliberate process but, in turbulent markets, new technology and rapidly-changing customer expectations can upset the established order. Given the unstable state, describe the characteristics that separate winners and losers in high-tech markets.

Question 76

Marketing____________________ is the fit between the needs of the project and the firm's resources and skills in marketing.

Question 77

Disruptive strategies can take two forms: ____________________ disruptions and ____________________.

Question 78

What are the characteristics of lead user firms? What are the characteristics of lead user projects and how can the lead user method be used to develop new products?

Question 79

New-product-development efforts for existing businesses or market-development projects for the firm's present products are the outgrowth of____________________strategic initiatives.