Deck 7: Section 1: Innovation and Change

Question 1

Even though education and communication, participation, negotiation, top management support, and coercion can all be used to manage resistance to change, coercion should be used only in a crisis or as a last resort.

Answer 1

True

Question 2

Milestones are formal review points that tend to lengthen the innovation process.

Answer 2

False

Question 3

Fully functional change occurs when incremental improvements are made to a dominant technological design. In a fully functional change, the improved version of the technology is fully backward compatible with the older version.

Answer 3

False

Question 4

The same techniques for managing innovation work equally as well after technological discontinuities as during periods of incremental change.

Question 5

Technological innovation not only makes it possible to duplicate the benefits obtained from a company's distinctive advantage but also quickly creates an opportunity to turn a company's competitive advantage into a competitive disadvantage.

Question 6

A creative work environment requires organizational encouragement and supervisory encouragement as well as work group encouragement.

Question 7

A technology cycle begins with the birth of a new technology and ends when that technology reaches its limits and dies; it is then replaced by newer, substantially better technology.

Question 8

Resistance to change usually results from organizational factors: such as the absence of promotion guidelines, bonuses, and praise.

Question 9

Technology cycles for low-tech products follow the typical U-curve pattern cycle of innovation.

Question 10

The typical S-curve pattern of innovation indicates that both early and late in the technology cycle, increased effort (i.e., money, research and development) brings only small improvements in technological performance.

Question 11

Innovation streams are patterns of innovation over time that can create sustainable competitive advantage.

Question 12

According to Kurt Lewin, managing organizational change is a simple process that requires organizational dialogue, change intervention, and reformatting.

Question 13

Organizational innovation is defined as "doing things differently" inside an organization.

Question 14

Dominant designs emerge because they solve a practical problem, are a result of the negotiations of independent standards bodies, or because of critical mass.

Question 15

Declaring victory too soon is one of the mistakes managers often make in the refreezing stage of change.

Question 16

Nearly all technology cycles follow a bell-shaped pattern of innovation.

Question 17

Technological discontinuities are followed by discontinuous change characterized by technological substitution and design competition.

Question 18

An innovation stream begins with a technological discontinuity, which is a scientific advance or a unique combination of existing technologies creating a significant breakthrough in performance or function.

Question 19

The three parts of the experiential approach to innovation are design iterations, testing, and milestones.

Question 20

Companies that want to sustain a competitive advantage must understand and protect themselves from the strategic threats of innovation.

Question 21

Results-driven change focuses primarily on changing company procedures, management philosophy, or employee behavior.

Question 22

The General Electric Workout is a special kind of activity-oriented change.

Question 23

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance____________ .

A) during the growth stage of the cycle
B) at the midpoint of the cycle
C) only at the end of the cycle
D) throughout the cycle
E) only at the beginning of the cycle

Question 24

A technology cycle occurs whenever there are major advances or changes in the___________ in a field or discipline.

A) human, technical, and conceptual skills needed
B) structure or personnel requirements
C) internal resource environment
D) knowledge, tools, and techniques
E) way information is integrated

Question 25

Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company's film business. Therefore, the company has decided to become a market leader in digital imaging. As Kodak tried to compete in this new innovation stream, it entered__________ .

A) technological adaptation
B) the era of dominant design
C) the technological growth stage
D) change substitution
E) discontinuous change

Question 26

When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of______________ .

A) corporate synergy
B) organizational innovation
C) assembly networking
D) organizational networking
E) reverse engineering

Question 27

When a U.S. automaker 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 stage of the technology cycle did it enter?

A) technological adaptation
B) the era of dominant design
C) the technological growth stage
D) change substitution
E) discontinuous change

Question 28

Nearly all technology cycles follow the typical___________ pattern of innovation.

A) W-curve
B) U-curve
C) bell-shaped
D) S-curve
E) V-shaped

Question 29

In terms of innovation streams, what________occurred when customers purchased flat-screen computer monitors to replace the older, bulkier monitors.

A) technological substitution
B) technological expansion
C) reengineering
D) demarketing
E) the pioneering era
Occurred when customers purchased flat-screen computer monitors to

Question 30

Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n)__________ .

A) technological subtraction
B) technological discontinuity
C) process obsolescence
D) process addition
E) example of design advantage

Question 31

Patterns of innovation over time that can create sustainable competitive advantage are called _________.

A) innovation maps
B) organization development
C) results-driven change
D) innovation streams
E) cyclical inventions

Question 32

Organizational __________is the successful implementation of creative ideas in organizations.

A) change
B) innovation
C) creativity
D) development
E) deployment

Question 33

In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance___________ ,

A) early in the cycle
B) throughout the cycle
C) at the end of the cycle
D) at both the beginning and end of the cycle
E) in the maturity stage of the cycle

Question 34

The development of the DVD player was a source of_____________to companies in the movie industry just as VHS tapes had once been.

A) a sustainable competitive advantage
B) creativity reengineering
C) technological discontinuity
D) planned shrinkage
E) technological replacement
To companies in the movie industry just as VHS tapes

Question 35

Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of____________ .

A) corporate synergy
B) organizational innovation
C) assembly networking
D) organizational networking
E) reverse engineering

Question 36

An innovation stream moves from one technology cycle to another through the process of____________ .

A) technological substitution
B) dominant design
C) incremental environmental change
D) organizational synergy
E) transition management

Question 37

When significant improvements in performance can ONLY be gained through radical new designs or new performance-enhancing materials, it is likely that a company is___________ in the S-curve pattern of innovation.

A) at its breakeven point
B) at the problem identification stage of the innovation cycle
C) at the end of the innovation cycle
D) at either the beginning or end of the innovation cycle
E) at the end of its maturity stage

Question 38

In the typical S-curve pattern of innovation, increased effort (i.e., money, research, and development) brings only small improvements in technological performance when performance limits of the technology are reached__________ .

A) during the introductory stage of the cycle
B) at the breakeven point of the cycle
C) during the maturity stage of the innovation cycle
D) throughout the cycle
E) at the end of the cycle

Question 39

A technology__________ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology.

A) process
B) pattern
C) cycle
D) hierarchy
E) continuum

Question 40

__________is the knowledge, tools, and techniques used to transform inputs into outputs.

A) Resource manipulation
B) Procedural innovation
C) A transformation system
D) Technology
E) Creativity

Question 41

Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company. Therefore, the company has decided to become a market leader in digital imaging while still providing customer support for people still using film cameras. The existence of both technologies is an example of___________ .

A) design substitution
B) modular management
C) design competition
D) hierarchical management
E) a creative flow

Question 42

Titleist has been manufacturing golf balls for several years, but each year it comes out with new golf ball designs. Titleist's development of the new Pro VI golf ball with a solid core designed to benefit players with high swing speeds is one example of how the manufacturer survives through__________ .

A) technological discontinuity
B) discontinuous change
C) dominant design
D) incremental change
E) technological continuity

Question 43

Which of the following is NOT a part of the experiential approach to innovation?

A) hands-on experience to reduce uncertainty
B) testing
C) multifunctional teams
D) design iterations
E) initiative conversations

Question 44

Discontinuous change in an innovation stream is characterized by______________ .

A) synergy
B) technological substitution
C) incremental change
D) empathetic design
E) innovative reciprocity

Question 45

The auto industry has been perfecting the internal combustion engine (ICE) for some 120 years. The Partnership for a New Generation of Vehicles (PNGV), a cooperative program between the Big Three and the U.S. government to replace ICEs with electric engines, has been operating since 1993. The internal combustion engine (ICE) is an example of______________ .

A) a dominant design
B) design dichotomy
C) a synergistic design
D) a differential design
E) a dichotomous product

Question 46

Which of the following is a component of a creative work environment that encourages creativity?

A) the development of challenging work
B) organizational encouragement
C) the granting of autonomy
D) the removal of organizational impediments
E) all of these

Question 47

The purchase of new technologies to replace older ones is an example of_____________ .

A) adaptive change
B) design replacement
C) technological substitution
D) dominant design
E) innovative exchange

Question 48

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. Unverferth used to _____________produce the best possible tiller before introducing it to the market.

A) service development
B) process duplication
C) design iteration
D) design compliance
E) process reengineering

Question 49

The _______________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) compression
B) experiential
C) technological substitution
D) generational change
E) technological disruption

Question 50

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the _____________approach to innovation.

A) compression
B) experiential
C) technological substitution
D) generational change
E) technological disruption

Question 51

Kodak is a company associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n)___________ .

A) creative work environment
B) open system
C) adaptive culture
D) culture of change
E) tall structure to encourage horizontal communications

Question 52

During the___________ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

A) technological discontinuity
B) discontinuous change
C) dominant design
D) incremental change
E) technological continuity

Question 53

__________are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.

A) Creative work environments
B) Innovative societies
C) Homogeneous work environments
D) Participative work teams
E) Empathetic work stations

Question 54

Which of the following is an organizational impediment to creativity in a work environment?

A) internal conflict
B) rigid management structures
C) bias toward the status quo (i.e., a conservative environment)
D) power struggles
E) all of these

Question 55

_____________is the phase of a technology cycle characterized by technological substitution and design competition.

A) Technological adaptation
B) The era of dominant design
C) The technological growth stage
D) Change substitution
E) Discontinuous change

Question 56

Companies need to excel at managing __________in order to successfully manage innovation streams.

A) the sources of innovation
B) innovation during synergistic change
C) reciprocity
D) environmental design issues
E) behavioral formality

Question 57

In order from beginning to end, the phases of a technology cycle within an innovation stream consist of_________________ .

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, era of incremental change, and technological discontinuity
D) technological discontinuity, discontinuous change, dominant design, and incremental change
E) technological discontinuity, incremental change, discontinuous change, and technological continuity

Question 58

Hewlett-Packard is currently exploring new products and markets through the development of digital imaging products in its plants in India, South Africa, and the United States. To jump-start this innovative process, Hewlett- Packard can ____________across all of its plants around the world.

A) manage flow through the use of Gantt charts
B) concentrate on dominant design and ignore incremental design
C) engage in creative reciprocity
D) establish creative work environments
E) do none of these

Question 59

Which of the following is NOT one of the components of creative work environments?

A) challenging work
B) group compensation
C) freedom
D) supervisory encouragement
E) organizational encouragement

Question 60

Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of____________ was used to develop Covisint.

A) serve development
B) process duplication
C) design iteration
D) design compliance
E) process reengineering

Question 61

It is appropriate to use a(n) _______________approach to manage innovation in more certain environments during periods of incremental change, in which 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
E) reinforcement

Question 62

The purpose of multifunctional teams is to_____________ .

A) allow organizations to concentrate on their internal environments and ignore the external environments until they have completed the brainstorming process
B) were primarily used by dot-coms and are no longer popular
C) speed innovation through early identification of new ideas or problems that would typically not have been generated until much later
D) do not typically use milestones because of group cohesiveness
E) replace organizational structures on a typical organizational chart

Question 63

What is the first step for managing innovation during discontinuous change?

A) design iteration
B) budgeting
C) the establishment of a dominant design
D) supplier involvement
E) process duplication

Question 64

_____________forces support the status quo.

A) Dialectical
B) Generational
C) Resistance
D) Experiential
E) Autonomous

Question 65

Which of the following statements about resistance to change is true?

A) Resistance to change will not occur when those affected by the change participate in its planning and implementation.
B) Resistance to change will not occur when employees are educated about the need for change.
C) Resistance to change will not occur when change efforts receive significant managerial support.
D) Resistance to change disappears when the organization operates in conditions of certainty.
E) Resistance to change will always occur; it is inevitable.

Question 66

ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to- the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the_____________ approach to innovation.

A) generational
B) experiential
C) milestones
D) compression
E) supply-side

Question 67

The use of milestones in the experiential approach to innovation________________ .

A) provides structure to the general chaos that follows technological discontinuities
B) shortens the innovation process
C) builds momentum by giving people a sense of accomplishment
D) lets an organization know when to take corrective action
E) does all of these

Question 68

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,____________ is said to have occurred.

A) a milestone
B) intuitive change
C) generational change
D) coercive change
E) discontinuous innovation

Question 69

The_____________ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that compressing the time it takes to complete those steps can speed up innovation.

A) compression
B) milestones
C) dialectical
D) generational
E) prototypical

Question 70

The goals of the compression approach to innovation are____________ .

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
E) a matrix innovation process and a sustainable competitive advantage

Question 71

Which of the following is NOT one of the basic methods for managing resistance to change?

A) education and communication
B) participation
C) change simulation
D) negotiation
E) coercion

Question 72

Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply?

A) planning
B) supplier involvement
C) shortening the time of individual steps
D) multifunctional teams
E) functional isolation

Question 73

When resistance to change is based on insufficient, incorrect, or misleading information, managers should use _____________as an approach to manage resistance.

A) education and communication
B) participation
C) negotiation
D) coercion
E) change manipulation

Question 74

Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in_____________ .

A) coercive change
B) dominant design manipulation
C) generational change
D) intuitive change
E) incremental modification

Question 75

Which of the following is one of the sources of resistance to change?

A) self-interest
B) multifunctional teams
C) a dynamic organizational culture
D) discontinuous innovation
E) sustainable status quo

Question 76

According to social psychologist Kurt Lewin,_________ lead to differences in the form, quality, or condition of an organization over time, while__________support the status quo, or the existing state of conditions in an organization.

A) compressed changes; generational changes
B) generational forces; resistance forces
C) generational changes; inertial changes
D) change forces; inertial forces
E) change forces; resistance forces

Question 77

Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin?

A) unfreezing
B) organizational dialogue
C) change definition
D) incremental change
E) change mentoring

Question 78

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are_____________ .

A) unfreezing, change intervention, and refreezing
B) organizational change, departmental change, and individual change
C) change definition, change motivation, and change
D) synthesizing, motivating, and rewarding
E) change definition, change mobilization, and change acceptance

Question 79

The use of milestones in the experiential approach to innovation_____________ .

A) serves to eliminate manufacturing bottlenecks
B) shortens the innovation process
C) creates incrementally sustainable advantages
D) virtually eliminates problems associated with the control function of management
E) does all of these

Question 80

The first step in the compression approach to innovation is____________ .

A) overlapping of the individual steps
B) planning
C) supplier involvement
D) granting autonomy
E) creating multifunctional teams