Alcatel-Lucent Intrapreneurship Strategies
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Questions and Answers

What is one of the benefits of Monitoring in smart connected products?

  • Reduces the cost of the product
  • Enhances the appearance of the product
  • Enables companies to optimize performance (correct)
  • Increases the weight of the product

    • Which aspect of smart connected products enables them to respond to changes in their condition?

  • Market demand
  • Control through algorithms (correct)
  • Historical data analysis
  • Physical appearance

    • How do smart connected products become more autonomous?

  • By reducing their connectivity
  • By increasing their weight
  • Through monitoring and control capabilities (correct)
  • By removing sensors

    • What role do sensors play in the functionality of smart connected products?

    <p>Monitoring the product's condition and external environment</p> Signup and view all the answers

    How does Optimization contribute to the value of smart connected products?

    <p>Enables companies to optimize performance in new ways</p> Signup and view all the answers

    Autonomy in smart connected products primarily leads to what?

    <p><strong>Improves safety</strong></p> Signup and view all the answers

    Control in smart connected products can be achieved through what?

    <p><strong>Algorithms embedded in the device or cloud</strong></p> Signup and view all the answers

    Monitoring in smart connected products allows for tracking of what?

    <p><strong>Product's operating characteristics</strong></p> Signup and view all the answers

    In the context of corporate venturing, what is the focus of 'Innovation Merchants'?

    <p>Aggressively selling narrow technologies as intellectual property</p> Signup and view all the answers

    What distinguishes 'Innovation Missionaries' from other innovators mentioned in the text?

    <p>They create and advance technologies to serve a cause</p> Signup and view all the answers

    What is a disadvantage associated with the 'Direct-Internal' form of corporate venturing?

    <p>High resource commitments</p> Signup and view all the answers

    What is a common advantage of 'Indirect-Internal' corporate venturing?

    <p>Encouragement of emergent entrepreneurial behavior</p> Signup and view all the answers

    What is one of the potential disadvantages of 'Indirect-External' corporate venturing?

    <p>Benefts are limited to financial investment</p> Signup and view all the answers

    What is a key role of 'Innovation Marketers' in the innovation ecosystem?

    <p>Proftably marketing ideas and understanding market needs</p> Signup and view all the answers

    'Intermediaries' add value in corporate venturing by:

    <p>Pooling funds from various sources for diversification</p> Signup and view all the answers

    What is one benefit of SCPs mentioned in the text?

    <p>Reducing reliance on service partners</p> Signup and view all the answers

    How can SCPs affect margins according to the text?

    <p>Boosting margins</p> Signup and view all the answers

    Why do companies consider changing their business models with SCPs?

    <p>To allow radical alteration of traditional business models</p> Signup and view all the answers

    Should a company sell its product data to outside partners based on the text?

    <p>Yes, to enter new businesses</p> Signup and view all the answers

    What is the potential expansion opportunity discussed in the text?

    <p>Providing a platform that connects related products and information</p> Signup and view all the answers

    How can SCPs help reduce the need for distribution channel partners?

    <p>By deepening customer relationships</p> Signup and view all the answers

    What aspect of customer knowledge can SCPs improve according to the text?

    <p>Knowledge of customer needs</p> Signup and view all the answers

    Why do companies consider monetizing their product data according to the text?

    <p>To enter new businesses by selling it</p> Signup and view all the answers

    What is the main benefit of open innovation according to the text?

    <p>It allows companies to generate ideas internally and commercialize them externally</p> Signup and view all the answers

    Which of the following is NOT a mode of innovation mentioned in the text?

    <p>Crowd-sourcing ideas</p> Signup and view all the answers

    What is the primary focus of innovation investors and benefactors according to the text?

    <p>Providing funding and resources for innovation</p> Signup and view all the answers

    What is the main difference between closed innovation and open innovation according to the text?

    <p>Closed innovation relies solely on internal ideas, while open innovation utilizes both internal and external ideas</p> Signup and view all the answers

    What has replaced research and development budgets as a primary source of funding for innovation?

    <p>Venture capital and angel investors</p> Signup and view all the answers

    Which of the following strategies for fostering intrapreneurship is NOT mentioned in the text?

    <p>Acquiring promising start-ups</p> Signup and view all the answers

    What is the fundamental shift in how companies generate new ideas and bring them to market, according to the text?

    <p>Moving from closed innovation to open innovation</p> Signup and view all the answers

    What is the purpose of measuring and tracking progress in fostering intrapreneurship?

    <p>To identify areas for improvement and adjust strategies accordingly</p> Signup and view all the answers

    What is a key advantage of a closed system for developing smart, connected products (SCPs)?

    <p>It allows the company to control and optimize all parts of the system.</p> Signup and view all the answers

    What is a potential drawback of a closed system for developing SCPs?

    <p>It requires significant investment and works best when a single manufacturer has a dominant position.</p> Signup and view all the answers

    What is a key advantage of an open system for developing SCPs?

    <p>It enables end customers to assemble the solution from different companies.</p> Signup and view all the answers

    What is a potential benefit of an open system for developing SCPs?

    <p>It could boost sales by enabling any entity to participate in the system.</p> Signup and view all the answers

    What is a key consideration when developing SCPs in-house?

    <p>Internalizing key skills and infrastructure, and retaining control over features, functionality, and product data.</p> Signup and view all the answers

    What is a key consideration regarding data for SCPs?

    <p>What data must be captured, secured, and analyzed to maximize the value of the offering.</p> Signup and view all the answers

    What is a specific concern related to data for SCPs?

    <p>How firms must consider production integrity, security, and privacy risks related to data.</p> Signup and view all the answers

    What is a key consideration regarding product data ownership for SCPs?

    <p>How to manage ownership and access to rights to product data.</p> Signup and view all the answers

    Which of the following is NOT a capability of smart, connected products (SCPs) mentioned in the text?

    <p>Customization</p> Signup and view all the answers

    How can smart, connected products contribute to improved safety according to the text?

    <p>Through their ability to autonomously respond to changes</p> Signup and view all the answers

    What is the relationship between the capabilities of SCPs and their value?

    <p>The value of SCPs grows exponentially as they become more connected</p> Signup and view all the answers

    What can be inferred about the role of algorithms in the context of smart, connected products?

    <p>Algorithms are embedded in SCPs to control their responses to changes</p> Signup and view all the answers

    Based on the information provided, which of the following statements is TRUE about the monitoring capability of SCPs?

    <p>Monitoring can utilize both internal sensors and external data sources</p> Signup and view all the answers

    Which of the following statements best describes the relationship between the capabilities of SCPs mentioned in the text?

    <p>Monitoring is a prerequisite for control, which enables optimization and autonomy</p> Signup and view all the answers

    According to the information provided, what is a potential advantage of the rich flow of monitoring data generated by SCPs?

    <p>It enables companies to optimize the performance of SCPs in new ways</p> Signup and view all the answers

    Based on the information provided, which of the following statements is NOT true about the capabilities of smart, connected products?

    <p>Optimization is achieved through continuous software updates and upgrades</p> Signup and view all the answers

    What is one of the implications of smart connected products on organizational structure?

    <p>Formation of dedicated data groups for cross-functional insights</p> Signup and view all the answers

    How do smart connected products impact manufacturing processes?

    <p>Requirement of cloud-based technology stack for operation</p> Signup and view all the answers

    What is a key aspect of the product design principles for smart connected products?

    <p>Integration of augmented reality and new user interfaces</p> Signup and view all the answers

    How do smart connected products transform the value chain?

    <p>Through a shift from mechanical to software engineering</p> Signup and view all the answers

    What is a significant change in customer relationships due to smart connected products?

    <p>Shift towards maximizing customer value over time</p> Signup and view all the answers

    How do smart connected products enhance after-sale service?

    <p>By enabling preventive and proactive service strategies</p> Signup and view all the answers

    What is the role of the Center of Excellence in organizations transitioning to smart connected products?

    <p>Providing key expertise on SCPs</p> Signup and view all the answers

    What is a key advantage of developing smart connected products (SCPs) in-house?

    <p>Internalizing key skills and retaining control over features and functionality</p> Signup and view all the answers

    What is a crucial consideration regarding data for smart connected products?

    <p>Determining the approach to transparency in data collection and use</p> Signup and view all the answers

    How should companies manage ownership and access to rights to their product data for smart connected products?

    <p>Seek joint ownership with partners to foster collaboration</p> Signup and view all the answers

    What is a key consideration when deciding whether to disintermediate distribution channels or service networks for smart connected products?

    <p>Evaluating the potential impact on customer relationships</p> Signup and view all the answers

    What is a potential drawback of a closed system for developing smart connected products?

    <p>Significant investment required for a single manufacturer</p> Signup and view all the answers

    What data must companies capture, secure, and analyze to maximize the value of their smart connected product offerings?

    <p>Data that creates tangible value for functionality</p> Signup and view all the answers

    What is a potential benefit of an open system for developing smart connected products?

    <p>Enabling end customers to assemble solutions from different companies</p> Signup and view all the answers

    What is a key consideration when deciding whether to develop the full set of smart connected product capabilities and infrastructure internally or outsource to vendors and partners?

    <p>The significant investment required for in-house development</p> Signup and view all the answers

    Which factor should primarily determine whether a product's functionality is embedded in the physical product or hosted in the cloud?

    <p>The need for quick response time or automation</p> Signup and view all the answers

    What is a key consideration when deciding whether to pursue an open or closed system for smart connected products (SCPs)?

    <p>The level of control desired over the product ecosystem</p> Signup and view all the answers

    Which of the following factors would favor hosting a product's functionality in the cloud rather than embedding it in the physical product?

    <p>The product requires frequent upgrades and changes</p> Signup and view all the answers

    Which of the following statements about network availability, reliability, and security is true?

    <p>Embedding software in the product minimizes network dependence and mitigates security risks</p> Signup and view all the answers

    Which of the following statements about the location of product use is true, according to the text?

    <p>Products operated in remote locations can mitigate dangers and costs by hosting functionality in the cloud</p> Signup and view all the answers

    Which of the following statements about the nature of the user interface is true?

    <p>Complex user interfaces should be hosted in the cloud to allow for easier updates and changes</p> Signup and view all the answers

    Based on the information provided in the text, which of the following statements about upgrading and changing products is true?

    <p>Cloud-based applications allow for easier product changes and upgrades compared to embedded functionality</p> Signup and view all the answers

    According to the information provided, which of the following would be the most appropriate strategy for a company that wants to maintain tight control over the ecosystem of its smart connected product?

    <p>Pursue a closed system approach</p> Signup and view all the answers

    How does optimized production through smart, connected products create value for customers according to the text?

    <p>By reducing fixed costs and enabling higher output or throughput</p> Signup and view all the answers

    Which of the following is NOT a way smart, connected products can potentially shift the bargaining power of buyers according to Porter's Five Forces analysis?

    <p>Increasing product differentiation and value-added services, moving competition beyond price</p> Signup and view all the answers

    How can smart, connected products potentially increase rivalry among existing competitors?

    <p>By enabling mass customization and tailoring offerings to specific segments</p> Signup and view all the answers

    Which of the following is a new obstacle to entry for potential new competitors in an industry with smart, connected products, according to the text?

    <p>All of the above are listed as new obstacles to entry in the text</p> Signup and view all the answers

    How can smart, connected products potentially reduce the threat of substitute products according to the text?

    <p>By offering superior performance, customization and customer value</p> Signup and view all the answers

    How can smart, connected products disrupt traditional supplier relationships and bargaining power?

    <p>Both A and B are ways mentioned in the text</p> Signup and view all the answers

    Which of the following is NOT listed as a new capability or consideration for companies developing smart, connected products?

    <p>Transitioning manufacturing operations to high-volume production</p> Signup and view all the answers

    How can smart, connected products enable companies to redefine industry boundaries?

    <p>By shifting the basis of competition to product systems and integrated solutions</p> Signup and view all the answers

    What is the primary focus of Discovery-Driven Planning (DD) compared to Stage-Gate Innovation?

    <p>Identifying and managing key assumptions and risks in the early stages</p> Signup and view all the answers

    How does Discovery-Driven Planning differ from Stage-Gate Innovation in terms of flexibility?

    <p>DD is more flexible, allowing for iteration and learning</p> Signup and view all the answers

    According to the information provided, how does Discovery-Driven Planning approach risk management?

    <p>It places greater emphasis on risk management by identifying and testing assumptions early</p> Signup and view all the answers

    What is the primary difference between Stage-Gate Innovation and Discovery-Driven Planning?

    <p>Stage-Gate focuses on managing the entire innovation process, while DD focuses on the early stages</p> Signup and view all the answers

    Which statement best describes the approach of Discovery-Driven Planning to innovation?

    <p>It recognizes innovation as an uncertain process where initial assumptions may need revision</p> Signup and view all the answers

    How does Stage-Gate Innovation approach risk management compared to Discovery-Driven Planning?

    <p>Stage-Gate focuses on managing risk primarily at specific decision points</p> Signup and view all the answers

    Which statement best describes the flexibility of Discovery-Driven Planning compared to Stage-Gate Innovation?

    <p>DD is more flexible, allowing for iteration and learning during the innovation process</p> Signup and view all the answers

    How does Discovery-Driven Planning approach the early stages of innovation compared to Stage-Gate Innovation?

    <p>DD focuses on identifying and managing key assumptions and risks in the early stages</p> Signup and view all the answers

    What was the fundamental shift in how companies generate new ideas and bring them to market?

    <p>Adopting an open innovation model utilizing external ideas and pathways</p> Signup and view all the answers

    What is the primary focus of innovation investors and benefactors according to the text?

    <p>Providing funding and resources for innovation efforts</p> Signup and view all the answers

    Which mode of innovation involves companies generating value by commercializing internal ideas through channels outside of their current business?

    <p>Open Innovation</p> Signup and view all the answers

    What is a key strategy mentioned for fostering intrapreneurship within an organization?

    <p>Creating an internal venture capital program</p> Signup and view all the answers

    Which of the following is NOT a mode of innovation mentioned in the text?

    <p>Disruptive Innovation</p> Signup and view all the answers

    What is a potential drawback of a closed system for developing smart connected products?

    <p>Limited ability to incorporate external ideas and technologies</p> Signup and view all the answers

    What is a key consideration when deciding whether to pursue an open or closed system for smart connected products (SCPs)?

    <p>The ability to incorporate external ideas and technologies</p> Signup and view all the answers

    What is a crucial consideration regarding data for smart connected products?

    <p>Ensuring data security and privacy</p> Signup and view all the answers

    What is one way in which smart connected products can increase buyer power, as per Porter's Five Forces analysis?

    <p>Enhancing direct cost savings for buyers</p> Signup and view all the answers

    How do smart connected products impact the bargaining power of suppliers?

    <p>Introducing new suppliers through the physical-to-software shift</p> Signup and view all the answers

    What is a potential drawback of SCPs for companies according to the text?

    <p>Increasing vulnerability to price pressure</p> Signup and view all the answers

    How are smart, connected products transforming the nature of customer relationships?

    <p>By broadening the value proposition beyond products</p> Signup and view all the answers

    Which factor contributes to the vulnerability of companies to price pressure in the context of SCPs?

    <p>Higher upfront software development costs</p> Signup and view all the answers

    What is one way in which SCPs can differentiate competition away from price alone?

    <p>Enabling segment customization and pricing based on usage data</p> Signup and view all the answers

    How do SCPs impact industry boundaries?

    <p>By shifting the basis of competition from discrete products to product systems</p> Signup and view all the answers

    Why do companies need to build new capabilities when embracing digital technology according to the text?

    <p>To adapt to the changing landscape and remain competitive in the digital era</p> Signup and view all the answers

    What is a key capability of smart, connected products (SCPs) that enables new product functionality?

    <p>All of the above</p> Signup and view all the answers

    How do smart, connected products impact the manufacturing process?

    <p>All of the above</p> Signup and view all the answers

    What is a key shift in customer relationships due to smart, connected products?

    <p>All of the above</p> Signup and view all the answers

    Which new organizational unit is required to manage the customer experience with smart, connected products?

    <p>Customer Success Management</p> Signup and view all the answers

    How can smart, connected products improve after-sales service?

    <p>All of the above</p> Signup and view all the answers

    What is a key product design principle for smart, connected products?

    <p>All of the above</p> Signup and view all the answers

    Which capability of smart, connected products enables autonomy?

    <p>The combination of all three</p> Signup and view all the answers

    What is a key shift in organizational focus due to smart, connected products?

    <p>All of the above</p> Signup and view all the answers

    What is the primary focus of 'Innovation Architects' according to the text?

    <p>Developing architectures to partition complexity</p> Signup and view all the answers

    What distinguishes 'Innovation Merchants' from other innovators mentioned in the text?

    <p>Their activities are commercially driven, focusing on codifying technologies into intellectual property</p> Signup and view all the answers

    What is a potential disadvantage of 'Direct-Internal' corporate venturing?

    <p>High resource commitments and managerial involvement</p> Signup and view all the answers

    What is a key advantage of 'Indirect-External' corporate venturing?

    <p>Access to new markets, innovative technologies, and learning</p> Signup and view all the answers

    Which form of corporate venturing involves the corporation investing in a venture capital fund designed to encourage internal ventures?

    <p>Indirect-Internal</p> Signup and view all the answers

    What is a common characteristic of 'Innovation Missionaries' according to the text?

    <p>Advance technologies to serve a cause without seeking financial profits</p> Signup and view all the answers

    'Direct-External' corporate venturing involves the corporation acquiring equity in which type of firm?

    <p>External entrepreneurial firm outside the corporation</p> Signup and view all the answers

    What is the primary purpose of Monitoring in smart connected products?

    <p>Tracking a product´s condition, operation, and external environment</p> Signup and view all the answers

    How does Autonomy in smart connected products primarily improve the product?

    <p>Improves safety</p> Signup and view all the answers

    What is a potential advantage of the rich flow of monitoring data generated by SCPs?

    <p>Enables companies to optimize performance in new ways</p> Signup and view all the answers

    Why do companies consider changing their business models with SCPs?

    <p>Value grows exponentially as products become more connected</p> Signup and view all the answers

    How do SCPs impact industry boundaries?

    <p>They shift industry boundaries</p> Signup and view all the answers

    What is a key consideration when developing SCPs in-house?

    <p>Deciding whether to develop the full set of capabilities internally or outsource</p> Signup and view all the answers

    How can smart, connected products potentially reduce the threat of substitute products?

    <p>By increasing buyer power</p> Signup and view all the answers

    What is the primary benefit of Optimization in smart connected products?

    <p>Enables companies to optimize performance in new ways</p> Signup and view all the answers

    What should companies decide when considering which set of capabilities and features to pursue for smart connected products?

    <p>Decide which features deliver real value</p> Signup and view all the answers

    What factor should determine how much functionality is embedded in the physical product versus in the cloud for smart connected products?

    <p>Cost</p> Signup and view all the answers

    In what type of products should complex user interfaces be hosted according to the text?

    <p>In the cloud</p> Signup and view all the answers

    Why is embedding software in the product preferred for network availability, reliability, and security?

    <p>Minimizes network dependence</p> Signup and view all the answers

    In what type of product should full automation be included?

    <p>Physical product</p> Signup and view all the answers

    What type of product is suitable for hosting functionality in the cloud to mitigate dangers and costs in remote locations?

    <p>Products operated in remote locations</p> Signup and view all the answers

    Why should cloud-based applications be considered for frequent upgrades?

    <p>Easily make product changes and upgrades</p> Signup and view all the answers

    What should companies consider when deciding whether to pursue an open or closed system for smart connected products?

    <p>Closed system</p> Signup and view all the answers

    What are some strategies developed by Alcatel-Lucent to encourage intrapreneurship?

    <p>Create an internal venture capital program, build a culture of innovation, encourage risk-taking and experimentation, measure and track progress, empower employees</p> Signup and view all the answers

    According to Chesbrough (2003), what is the fundamental shift in how companies generate new ideas in the era of open innovation?

    <p>Companies now generate their own ideas and then develop, manufacture, market, distribute, and service them.</p> Signup and view all the answers

    What is the concept of Open Innovation as described by Chesbrough (2003)?

    <p>Firms commercialize external (as well as internal) ideas by deploying outside (as well as in-house) pathways to the market.</p> Signup and view all the answers

    How do companies generate value for the organization through Open Innovation?

    <p>By commercializing internal ideas through channels outside of their current business.</p> Signup and view all the answers

    What are some modes of innovation mentioned in the text?

    <p>Funding innovation through innovation investors and benefactors.</p> Signup and view all the answers

    What is the role of an Innovation Investor according to the text?

    <p>To supply fuel for innovation, which used to be part of the R&amp;D budget but now includes VC, angel investors, etc.</p> Signup and view all the answers

    What are some key takeaways regarding fostering intrapreneurship within an organization?

    <p>Create a culture of innovation, encourage risk-taking, measure progress, and empower employees.</p> Signup and view all the answers

    How do companies shift towards Open Innovation practices as discussed in the text?

    <p>By commercializing both external and internal ideas through various pathways to the market.</p> Signup and view all the answers

    What is the primary purpose of SCPs according to the text?

    <p>Data storage, analytics, and enabling new product capabilities</p> Signup and view all the answers

    How are SCPs influencing the way firms interact with their customers?

    <p>Creating continuous and open-ended relationships</p> Signup and view all the answers

    What key changes are happening in the work of every function in the value chain due to SCPs?

    <p>Reshaping with new product capabilities and data</p> Signup and view all the answers

    How are SCPs transforming the value chain in terms of product design principles?

    <p>Shift from mechanical to software engineering</p> Signup and view all the answers

    What is the impact of SCPs on after-sale service?

    <p>Improving efficiency and enabling preventive service</p> Signup and view all the answers

    What new expertise and culture are needed by manufacturers of SCPs?

    <p>Software expertise and cross-functional coordination</p> Signup and view all the answers

    What implications do SCPs have on organizational structure in terms of data management?

    <p>Creating dedicated data groups and unified data organizations</p> Signup and view all the answers

    What are the key organizational units required for managing SCPs according to the text?

    <p>Dev-Ops and Customer Success Management</p> Signup and view all the answers

    What are the advantages of developing smart connected products in-house?

    <p>Companies internalize key skills and infrastructure, retain control over features and functionality, and may capture FMA.</p> Signup and view all the answers

    What data must the company capture, secure, and analyze to maximize the value of its offering?

    <p>Firms must consider how each type of data creates tangible value for functionality, and also consider production integrity, security, and privacy risks.</p> Signup and view all the answers

    How can the company manage ownership and access to rights to its product data?

    <p>Companies may pursue outright ownership of product data or seek joint ownership.</p> Signup and view all the answers

    Should the company fully or partially disintermediate distribution channels or service networks?

    <p>It depends on the company's strategy and goals.</p> Signup and view all the answers

    What are the advantages of developing the technological stack for smart connected products internally?

    <p>Internal development allows companies to control and optimize all parts of the system.</p> Signup and view all the answers

    What are the benefits of an open system for smart connected products?

    <p>It enables end customers to assemble parts from different companies and boosts sales.</p> Signup and view all the answers

    What are the risks associated with developing the full set of smart connected product capabilities internally?

    <p>It requires significant investment and works best when a single manufacturer has a dominant position.</p> Signup and view all the answers

    What factors must firms consider regarding data for smart connected products?

    <p>They must consider how each type of data creates tangible value for functionality and production integrity, security, and privacy risks.</p> Signup and view all the answers

    What is the main difference between Stage-Gate Innovation and Discovery-Driven Planning?

    <p>Flexibility</p> Signup and view all the answers

    How does Discovery-Driven Planning differ from Stage-Gate Innovation in terms of risk management?

    <p>DD places greater emphasis on identifying and testing assumptions early in the innovation process.</p> Signup and view all the answers

    Why does Discovery-Driven Planning emphasize early identification and testing of assumptions?

    <p>To adjust plans accordingly.</p> Signup and view all the answers

    What is the primary focus of Stage-Gate Innovation compared to Discovery-Driven Planning?

    <p>Management of innovation process.</p> Signup and view all the answers

    How does Discovery-Driven Planning manage risk compared to Stage-Gate Innovation?

    <p>By identifying and testing assumptions early in the innovation process.</p> Signup and view all the answers

    What role does flexibility play in the difference between Discovery-Driven Planning and Stage-Gate Innovation?

    <p>DD is more flexible than SG, allowing for more iteration and learning during innovation projects.</p> Signup and view all the answers

    What is the emphasis of Discovery-Driven Planning regarding risk management during the innovation process?

    <p>To identify and test assumptions early.</p> Signup and view all the answers

    How does Discovery-Driven Planning approach risk management differently from Stage-Gate Innovation?

    <p>By adjusting plans accordingly based on early assumptions testing.</p> Signup and view all the answers

    How can smart, connected products impact the bargaining power of buyers according to Porter's Five Forces analysis?

    <p>Smart, connected products can increase buyer power by giving buyers a better understanding of true product performance, allowing them to play one manufacturer off another.</p> Signup and view all the answers

    What is a key aspect of the product design principles for smart, connected products?

    <p>Hardware standardization through software-based customization.</p> Signup and view all the answers

    How do smart, connected products affect the traditional supplier relationships and bargaining power?

    <p>Smart, connected products shake up traditional supplier relationships by redistributing bargaining power.</p> Signup and view all the answers

    What is the impact of smart, connected products on manufacturing processes?

    <p>Smart, connected products lead to higher fixed costs and lower variable costs due to increased upfront costs of software development and complex product design.</p> Signup and view all the answers

    How can smart, connected products create a competitive advantage in terms of design?

    <p>Smart, connected products offer a whole set of new product principles that focus on hardware standardization through software-based customization.</p> Signup and view all the answers

    What are some key considerations regarding data for smart, connected products?

    <p>Companies need robust security management, authentication processes, secure data storage, and protection against hackers.</p> Signup and view all the answers

    How do smart, connected products reframe the basis of competition according to the text?

    <p>Smart, connected products shift the basis of competition from discrete products to product systems consisting of closely related products.</p> Signup and view all the answers

    What is the potential impact of smart, connected products on the threat of substitutes in the market?

    <p>Smart, connected products can offer superior performance, customization, and customer value, reducing substitution threats and improving industry growth and profitability.</p> Signup and view all the answers

    What are some strategies Alcatel-Lucent developed to encourage intrapreneurship?

    <p>Create an internal venture capital program, build a culture of innovation, encourage risk-taking and experimentation, measure and track progress, empower employees</p> Signup and view all the answers

    According to Chesbrough (2003), what is the fundamental shift in how companies generate new ideas and bring them to the market?

    <p>Closed Innovation to Open Innovation</p> Signup and view all the answers

    What is Open Innovation as described by Chesbrough (2003)?

    <p>Firms commercialize external (as well as internal) ideas by deploying outside (as well as in-house) pathways to the market</p> Signup and view all the answers

    What are the modes of innovation discussed in the text?

    <p>Funding Innovation, Innovation Investors and Benefactors, Innovation Investor</p> Signup and view all the answers

    How do companies generate value for the organization through Open Innovation?

    <p>By commercializing internal ideas through channels outside of their current business</p> Signup and view all the answers

    What are the key takeaways from the text regarding fostering innovation and entrepreneurship?

    <p>Create internal venture capital program, build culture of innovation, encourage risk-taking and experimentation, measure and track progress, empower employees</p> Signup and view all the answers

    How does Open Innovation differ from Closed Innovation in terms of idea generation and commercialization?

    <p>Open Innovation involves firms commercializing external (as well as internal) ideas through outside pathways, while Closed Innovation focuses on generating and commercializing internal ideas only.</p> Signup and view all the answers

    What is the significance of empowering employees in fostering innovation within an organization?

    <p>Empowering employees can lead to increased creativity, idea generation, and a culture of innovation.</p> Signup and view all the answers

    What are the key considerations for a company deciding whether to develop the full set of smart connected product capabilities and infrastructure internally or outsource to vendors and partners?

    <p>Significant investment and control over features, functionality, and product data.</p> Signup and view all the answers

    What data must a company capture, secure, and analyze to maximize the value of its smart connected product offering?

    <p>Data that creates tangible value for functionality, production integrity, security, and privacy risks.</p> Signup and view all the answers

    How does a company manage ownership and access to rights to its product data for smart connected products?

    <p>Companies may pursue outright ownership or joint ownership of product data.</p> Signup and view all the answers

    Should a company fully or partially disintermediate distribution channels or service networks for smart connected products?

    <p>Companies need to decide based on their strategy and goals.</p> Signup and view all the answers

    What is the impact of developing smart connected products in-house for a company?

    <p>Internalizing key skills and infrastructure, retaining control over features and functionality.</p> Signup and view all the answers

    What is a potential obstacle for potential new competitors in an industry with smart, connected products?

    <p>Significant investment required to develop SCP capabilities.</p> Signup and view all the answers

    How do smart connected products potentially shift the bargaining power of buyers according to Porter's Five Forces analysis?

    <p>By increasing rivalry among existing competitors.</p> Signup and view all the answers

    What is a key consideration regarding data for smart connected products?

    <p>Understanding how each type of data creates tangible value for functionality.</p> Signup and view all the answers

    How did KAESER improve its systems and reduce maintenance costs?

    <p>By developing a new digital platform</p> Signup and view all the answers

    What approach did Danske Bank adopt to transform its business while maintaining traditional banking operations?

    <p>Dual-track approach</p> Signup and view all the answers

    What were some challenges faced by Danske Bank during its digital transformation journey?

    <p>Building new capabilities, changing organizational structure, managing risks</p> Signup and view all the answers

    How did Danske Bank manage the challenges associated with introducing new digital services?

    <p>By investing in new talent, partnering with fintech startups, leveraging agile development methodologies</p> Signup and view all the answers

    What are some key takeaways from the digital transformation journey of Danske Bank?

    <p>Adopt dual-track approach, build new digital capabilities, partner with fintech startups, leverage agile development methodologies</p> Signup and view all the answers

    How did leveraging agile development methodologies help Danske Bank during its digital transformation?

    <p>To manage risks associated with introducing new digital services</p> Signup and view all the answers

    What was the strategy adopted by KAESER to remain competitive in the industry?

    <p>Embrace digital technologies and Industry 4.0 technologies</p> Signup and view all the answers

    How did Danske Bank transform its business model to remain competitive?

    <p>By adopting a platform business model</p> Signup and view all the answers

    Study Notes

    Smart Connected Products (SCPs)

    • Monitoring Benefits: Enables real-time tracking of product conditions, facilitating proactive maintenance and improved customer satisfaction.
    • Responsiveness: SCPs can adapt to changes in their condition due to embedded sensors that gather data continuously.
    • Autonomy: Achieved through advanced algorithms that allow SCPs to make decisions without human intervention, enhancing efficiency.
    • Sensor Role: Essential for gathering data, sensors provide insights into product performance and user behavior, driving better functionality.
    • Optimization Value: Contributes by improving product performance and efficiency, leading to cost savings and increased user satisfaction.
    • Autonomy Implications: Leads to reduced reliance on human oversight, enabling more efficient operations and decision-making.
    • Control Mechanisms: Attained through user interfaces and software tools that allow for adjustments and configurations of product settings.
    • Monitoring Scope: Facilitates tracking of operational performance, usage statistics, and maintenance needs, fostering improved product lifecycle management.

    Corporate Venturing

    • Innovation Merchants Focus: Concentrate on generating commercial returns through innovative projects and ventures.
    • Innovation Missionaries Distinction: Differ from others by prioritizing social impact over financial gains in their innovation efforts.
    • Direct-Internal Drawback: Risk of misalignment with core business strategies or objectives, leading to inefficiencies.
    • Indirect-Internal Advantage: Leverages existing resources and capabilities while minimizing risk through collaborative innovation.
    • Indirect-External Disadvantage: Potential loss of control over innovation processes and alignment with company objectives.
    • Innovation Marketers Role: Help in promoting and selling new innovations within the market, driving adoption and usage.

    Smart Connected Products and Data

    • SCP Benefits: Enhance operational efficiencies, create new revenue streams, and foster deeper customer insights.
    • Margin Impact: SCPs can influence profit margins by optimizing processes and reducing costs influenced by data analytics.
    • Business Model Shifts: Companies may shift due to the potential for new service offerings and revenue opportunities presented by SCPs.
    • Data Selling: Generally discouraged, as product data can provide strategic advantages and insights best kept in-house.
    • Customer Knowledge Benefits: SCPs improve understanding customer preferences and behaviors, leading to better product development.
    • Monetizing Data: Practices vary, but companies often seek additional revenues through insights rather than direct sales.

    Innovation Strategies

    • Open Innovation Benefits: Facilitates collaboration, accelerates development, and enhances resource availability.
    • Closed vs. Open Innovation: Closed innovation focuses on internal capabilities, while open innovation encourages external collaborations.
    • Funding Sources: Crowdsourcing and strategic partnerships have emerged as essential funding avenues instead of traditional R&D budgets.
    • Intrapreneurship Strategies: Encourage entrepreneurial behavior within employees, fostering innovation and agility in corporate settings.

    Considerations for SCP Development

    • In-House Development Advantages: Better control over intellectual property and tailored solutions to specific organizational needs.
    • Data Ownership Concerns: Clear policies necessary for managing rights and access to product-related data collected through SCPs.
    • Systems Decision Making: The choice between open and closed systems should consider development costs, flexibility, and strategic goals.
    • Cloud vs. Embedded Functions: Hosting functionality in the cloud may enhance accessibility and scalability compared to embedding in physical products.
    • Network Dependencies: The performance and capabilities of SCPs heavily rely on the reliability of network connections and data security.

    Market Dynamics and Competition

    • Buyer Power Shifts: SCPs can empower customers with information and capabilities that may increase their bargaining power.
    • Rivalry Dynamics: Smart products can intensify competition by enabling differentiated services and value propositions.
    • New Entry Obstacles: The complexity of developing smart capabilities creates barriers for potential new entrants in the market.
    • Supplier Relationships: SCPs can transform traditional supply chains, altering negotiation dynamics and relationships.

    Planning and Risk Management

    • Discovery-Driven Planning Focus: Emphasizes iterative learning and adapts strategies based on real-world feedback and insights.
    • Flexibility Contrast: Discovery-Driven Planning is inherently more flexible than Stage-Gate Innovation, allowing for adjustments along development paths.
    • Risk Management Differences: Discovery-Driven Planning employs an exploratory approach, while Stage-Gate relies more on predefined stages and checks.

    Customer Relationships and Value Chains

    • Transformation of Customer Relationships: SCPs shift interactions towards ongoing engagement and personalized service offerings.
    • After-Sale Enhancements: SCPs provide valuable data for continuous customer support and tailored service solutions post-purchase.
    • Value Chain Changes: Smart connected products disrupt traditional value chains by creating new touchpoints and data flows.

    Important Design Principles

    • Principles of SCP Design: Focus on user experience, integrated functionalities, and adaptability to changing market needs.
    • Data Management Considerations: Establish policies to ensure security, ownership rights, and ethical use of data collected through SCPs.

    Competitive Strategies and Value Creation

    • Differentiation Beyond Price: SCPs provide unique features and data-driven insights, shifting competitive focus from price to value.
    • Adaptive Supply Chain Strategies: SCPs encourage new approaches to managing supplier relationships and distribution channels, prioritizing responsiveness and innovation.

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