Deck 17: Managing Technology and Innovation

Question 1

Innovators are adventurous and willing to take risks.

Answer 1

True

Question 2

Emerging technologies are those that have proven effective,but they also provide a strategic advantage because not everyone uses them.

Answer 2

False

Question 3

Technology is embedded in every product,service and procedure used or produced.

Answer 3

True

Question 4

Early adopters of a new technology are considered headstrong or extreme.

Question 5

Technology leadership does not provide a significant learning advantage.

Question 6

One advantage of technology leadership is a first-mover advantage.

Question 7

Technology is of moderate importance for a firm's competitive advantage.

Question 8

If a new technology is theoretically possible but has no economic practicality,the technology will probably not emerge.

Question 9

If the innovators are not enthusiastic about a technology,the new technology has serious problems.

Question 10

Benchmarking is the process of comparing the organization's use of technology over time.

Question 11

The product life cycle is a predictable pattern followed by a technological innovation,from its inception and development to market saturation and replacement.

Question 12

Base technologies provide a competitive advantage.

Question 13

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

Question 14

A technology life cycle can be made up of many individual product life cycles.

Question 15

The appropriate time for an organization to adopt technological innovations is when the costs and risks of switching to the technology are outweighed by the benefits.

Question 16

A technology audit is the process of clarifying the key technologies upon which an organization depends.

Question 17

Being the first to develop or adopt a new technology always leads to immediate advantage and high profits.

Question 18

Innovation is described as a change in method or technology,a departure from previous ways of doing things.

Question 19

Technology leadership is used to support a differentiation strategy while technology follower ship is limited to supporting a low-cost strategy.

Question 20

The makers of generic drugs use a technology followership strategy.

Question 21

Firms that are not technology-oriented must develop new competencies in order to survive.

Question 22

The sociotechnical systems approach to job design attempts to redesign tasks to optimize operation of a new technology while preserving employees' interpersonal relationships and other human aspects of the work.

Question 23

Companies who are seen as proactive "technology-push" innovators tend to have cultures that are more outward-looking and opportunistic.

Question 24

The first consideration that needs to be addressed in developing a strategy around technological innovation is market potential.

Question 25

Scanning focuses on what can be done and what is being developed.

Question 26

New technology can only come from scientists and product developers working in R&D laboratories.

Question 27

Development projects are focused on creating a new product or process via technological advances.

Question 28

Early adopters of new technologies tend to be more profitable.

Question 29

___________ is a change in technology,a departure from previous ways of doing things.

A)Innovation
B)Technology
C)Process
D)Invention
E)Intervention

Question 30

The systematic application of scientific knowledge to a new product,process or service is called

A)planning.
B)organizing.
C)technology.
D)controlling.
E)management.

Question 31

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

Question 32

The executive champion is an executive who supports a new technology and protects the technical innovator of the innovation.

Question 33

A CTO is the executive in charge of training strategy and development.

Question 34

Development projects have one major benefit.

Question 35

The technical innovator is the person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.

Question 36

Technology trading is becoming increasingly common.

Question 37

Organizations must consider the feasibility of technological innovations because technical obstacles may represent barriers to progress.

Question 38

There are several ways to source technology including internal development,contracted development,and licensing.

Question 39

Key roles in acquiring and developing new technologies are the technical innovator,product developer and executive champion.

Question 40

Bureaucracy is the best friend of innovation.

Question 41

Early adopters of new technologies tend to be

A)larger,profitable and generic companies.
B)smaller,risk-aversive and flexible companies.
C)highly educated and unable to cope with uncertainty and abstraction.
D)critical to the success of a new technology.
E)adventuresome and willing to take risks.

Question 42

The technology life cycle begins with

A)the bringing together of knowledge and ideas.
B)refinement and evolution as the technology is improved.
C)recognition of a need coupled with potential to satisfy that need through science or knowledge.
D)the decline in usefulness or practicality of a competing product,process or service.
E)recognition that a new technology is economically practical.

Question 43

The early majority,representing ______ percent of adopters is more deliberate and takes longer to decide to use something new.

A)48
B)13.5
C)34
D)16
E)2.5

Question 44

Fiscally Secure,LLC prepares Esther's annual tax returns and has finally agreed (much to the dismay of the senior partner,Ralph J.Orange,III)to utilize the IRS system which enables the returns to be transmitted to the IRS electronically rather than through the mail.All other firms are utilizing the system and have found it to be reliable.This firm only agreed to utilize the new technology after a number of key clients threatened to take their accounts elsewhere unless they could file their returns electronically.Fiscally Secure should be classified as

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

Question 45

Often isolated and highly conservative in their views,______ are extremely suspicious of innovation and change.

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

Question 46

Which of the following is a disadvantage of technology leadership?

A)Higher profit margins
B)Little or no competition
C)Greater efficiency
D)Higher costs
E)Establishment of entry barriers

Question 47

Innovation will spread faster if it has which of the following?

A)A slight advantage over its predecessor
B)Compatibility with existing systems and procedures
C)More rather than less complexity
D)Significant commitment to the innovation
E)Difficult to copy

Question 48

A predictable pattern followed by a technological innovation starting from its inception and development to market saturation and replacement is called a(n)

A)organizational development pattern.
B)process innovation.
C)technology life cycle.
D)product innovation.
E)product development.

Question 49

Fair and Legal,LLC prepares Charles's annual tax returns and was one of the first to utilize the IRS system which enabled the returns to be transmitted to the IRS electronically rather than through the mail.Fair and Legal had consulted on the project for the IRS with its developer and beta tested the product.Fair and Legal liked how the software performed during the beta test.Other firms were hesitant to use the new system until it had proven itself reliable and considered use of the system during the first year as somewhat extreme and risky.Fair and Legal should be classified as

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

Question 50

Top Tools learns from the leader in the tool field,Custom Tools.As a technology follower,Top Tools most likely establishes product differentiation by

A)making a different product.
B)pioneering unique products or services.
C)creating new technologies.
D)adapting technologies to fit buyers' needs.
E)Technology followers cannot establish product differentiation due to strict patent restrictions.

Question 51

Members of the late majority are late in adopting technology because they

A)are skeptical of technological change.
B)are responding to decreasing social pressures.
C)approach innovation with great curiosity.
D)are not well educated.
E)are highly conservative in their views.

Question 52

What makes technology leadership attractive for some companies is the potential for

A)infrastructure improvements.
B)learning costs.
C)establishment of entry barriers.
D)eliminating defects.
E)greater risks.

Question 53

The two fundamental types of innovation include

A)process innovations and process technologies.
B)product innovations and product technologies.
C)process innovations and product innovations.
D)product technologies and process innovations.
E)product technologies and process technologies.

Question 54

Japanese manufacturers' kaizen (continuous improvement)programs enable them to maintain

A)strategic alliances.
B)a learning advantage over their competition.
C)larger,faster facilities.
D)positive working relationships with all employees.
E)a homogeneous workforce.

Question 55

The "learning advantage" of being a technology leader refers to

A)the ability to produce less expensive products due to familiarity and experience with the processes involved.
B)the ability to produce products more quickly through specialization of labor.
C)keeping the company ahead of the competition by generating minor product improvements that are difficult to imitate.
D)enhancing and improving upon the innovations of other companies.
E)occupying the best market niches.

Question 56

Calipre International carefully watches the actions of its most innovative competitor and learns from it.Calipre is most likely following a low-cost strategy by

A)making subtle changes to the product,thereby avoiding patent restrictions.
B)producing an imitation of the new technology that utilizes lower-quality and lower-cost materials.
C)avoiding the costs and risks of technology leadership.
D)mass-producing products that have an established market niche.
E)Based on the information in the question Calipre would not be able to follow a low-cost strategy.

Question 57

When a company establishes technology leadership by pioneering unique products or services that command premium prices,it has benefited from a

A)high-cost strategy.
B)concentric strategy.
C)low-cost strategy.
D)diversification strategy.
E)differentiation strategy.

Question 58

Which group of adopters of a new technology is critical to the technology's success?

A)Early adopters
B)Late majority
C)Innovators
D)Early majority
E)Laggards

Question 59

California Concepts is a consulting group,specializing in helping its clients develop pioneering,efficient,product designs and equally efficient ways to perform needed operations both based on technological advances.California Concepts is most likely helping its clients achieve competitive advantage by developing _________ strategies for them.

A)technological
B)differential
C)low-cost
D)low price
E)diverse

Question 60

The forces that drive technological development include

A)resource availability and product innovation.
B)entrepreneurial initiative and the capability to convert practice into knowledge.
C)a need or demand and product innovation.
D)resource availability and a need or demand.
E)the capability to convert practice into knowledge and economic practicality.

Question 61

Ivory International,a machine tool manufacturing company is very concerned about competitive advantage in their industry.They should know that ______ technologies provide little competitive advantage.

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

Question 62

____________ helps to clarify the key technologies upon which an organization depends.

A)An innovator
B)A technology audit
C)Benchmarking
D)Scanning
E)A CTO

Question 63

______ have proven effective,but they also provide a strategic advantage because not everyone uses them.

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

Question 64

Which of these technologies are still under development and thus are unproved?

A)Base technologies
B)Emerging technologies
C)Key technologies
D)Ordinary technologies
E)Pacing technologies

Question 65

Which of the following is the process of comparing an organization's practices and technologies with those of other companies?

A)Competitive analysis
B)Corporate espionage
C)Competitive monitoring
D)Benchmarking
E)Scanning

Question 66

Which of the following is the first consideration in developing a strategy around technological innovation?

A)Organizational suitability
B)Market potential
C)Technological feasibility
D)Economic viability
E)Political barriers

Question 67

It was recently announced that the state university had agreed to develop (or try to develop)a new hybrid seed for northern climates.The company that has provided the funding for this project hopes to sell the hybrid in the former Soviet Union.The company seems to be attempting to acquire technology through

A)state funding.
B)internal development.
C)technology trading.
D)licensing.
E)contracted development.

Question 68

______ suggests whether there is a good financial incentive for "pulling off" a technological innovation.

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

Question 69

Technology that is commonplace in the industry and which everyone must be able to operate is referred to as

A)base.
B)emerging.
C)problematic.
D)complacency.
E)pacing.

Question 70

Eileen has developed and patented a new process for recycling plastic.A number of companies have expressed an interest in buying Eileen's company in order to gain access to the technology.Should Eileen 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)purchase.

Question 71

Categorizing technologies as base,key,pacing or emerging is an effort to

A)determine differentiation.
B)measure competitive value.
C)establish timing within a life cycle.
D)regulate patent awards.
E)provide a basis for licensing.

Question 72

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

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

Question 73

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

A)buy it.
B)develop it internally.
C)license it from others.
D)develop a joint venture.
E)purchase the owner of the technology.

Question 74

Which of the following is a factor in management's decisions on when to adopt a new technology?

A)Ongoing development
B)Gradual diffusion
C)Innovation/dynamic competitive impact
D)Complementary innovations
E)The potential benefits of the new technology

Question 75

Anti-lock brake systems are a well-established feature for automobiles,but still are not "standard equipment" in the industry.They would therefore be classified as a(n)

A)base technology.
B)key technology.
C)emerging technology.
D)market technology.
E)active technology.

Question 76

One advantage of developing technology within your own company is

A)optimal utilization of your resources.
B)cost efficiencies.
C)keeping the technology exclusive to the organization.
D)being allowed to hire more people.
E)being able to take plenty of time to develop a product right.

Question 77

Scanning is

A)comparing an organization's practices and technologies with those of other companies.
B)focused on current activities and technologies.
C)focused on what can be done and what is being developed.
D)comparing the competitive advantages of two companies.
E)clarifying the key technologies on which an organization depends.

Question 78

The process of comparing the organization's practices and technologies to that of the industry's standards is known as

A)benchmarking.
B)scanning.
C)innovation.
D)feasibility analysis.
E)technology.

Question 79

________ firms' strategies are focused more on deepening their capacity base through complementary technologies that extend rather than replace their current ones,whereas hybrid _______ firms tends to grab a dominant position from their strengths in marketing and manufacturing than through technological innovation.

A)Defender;analyzer
B)Offender;defender
C)Leader;follower
D)Experienced;inexperienced
E)Analyzer;offender

Question 80

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

A)high risk decision.
B)rent or lease decision.
C)make-or-buy decision.
D)benchmark.
E)budget decision.