197 Questions
What is one of the benefits of Monitoring in smart connected products?
Enables companies to optimize performance
Which aspect of smart connected products enables them to respond to changes in their condition?
Control through algorithms
How do smart connected products become more autonomous?
Through monitoring and control capabilities
What role do sensors play in the functionality of smart connected products?
Monitoring the product's condition and external environment
How does Optimization contribute to the value of smart connected products?
Enables companies to optimize performance in new ways
Autonomy in smart connected products primarily leads to what?
Improves safety
Control in smart connected products can be achieved through what?
Algorithms embedded in the device or cloud
Monitoring in smart connected products allows for tracking of what?
Product's operating characteristics
In the context of corporate venturing, what is the focus of 'Innovation Merchants'?
Aggressively selling narrow technologies as intellectual property
What distinguishes 'Innovation Missionaries' from other innovators mentioned in the text?
They create and advance technologies to serve a cause
What is a disadvantage associated with the 'Direct-Internal' form of corporate venturing?
High resource commitments
What is a common advantage of 'Indirect-Internal' corporate venturing?
Encouragement of emergent entrepreneurial behavior
What is one of the potential disadvantages of 'Indirect-External' corporate venturing?
Benefts are limited to financial investment
What is a key role of 'Innovation Marketers' in the innovation ecosystem?
Proftably marketing ideas and understanding market needs
'Intermediaries' add value in corporate venturing by:
Pooling funds from various sources for diversification
What is one benefit of SCPs mentioned in the text?
Reducing reliance on service partners
How can SCPs affect margins according to the text?
Boosting margins
Why do companies consider changing their business models with SCPs?
To allow radical alteration of traditional business models
Should a company sell its product data to outside partners based on the text?
Yes, to enter new businesses
What is the potential expansion opportunity discussed in the text?
Providing a platform that connects related products and information
How can SCPs help reduce the need for distribution channel partners?
By deepening customer relationships
What aspect of customer knowledge can SCPs improve according to the text?
Knowledge of customer needs
Why do companies consider monetizing their product data according to the text?
To enter new businesses by selling it
What is the main benefit of open innovation according to the text?
It allows companies to generate ideas internally and commercialize them externally
Which of the following is NOT a mode of innovation mentioned in the text?
Crowd-sourcing ideas
What is the primary focus of innovation investors and benefactors according to the text?
Providing funding and resources for innovation
What is the main difference between closed innovation and open innovation according to the text?
Closed innovation relies solely on internal ideas, while open innovation utilizes both internal and external ideas
What has replaced research and development budgets as a primary source of funding for innovation?
Venture capital and angel investors
Which of the following strategies for fostering intrapreneurship is NOT mentioned in the text?
Acquiring promising start-ups
What is the fundamental shift in how companies generate new ideas and bring them to market, according to the text?
Moving from closed innovation to open innovation
What is the purpose of measuring and tracking progress in fostering intrapreneurship?
To identify areas for improvement and adjust strategies accordingly
What is a key advantage of a closed system for developing smart, connected products (SCPs)?
It allows the company to control and optimize all parts of the system.
What is a potential drawback of a closed system for developing SCPs?
It requires significant investment and works best when a single manufacturer has a dominant position.
What is a key advantage of an open system for developing SCPs?
It enables end customers to assemble the solution from different companies.
What is a potential benefit of an open system for developing SCPs?
It could boost sales by enabling any entity to participate in the system.
What is a key consideration when developing SCPs in-house?
Internalizing key skills and infrastructure, and retaining control over features, functionality, and product data.
What is a key consideration regarding data for SCPs?
What data must be captured, secured, and analyzed to maximize the value of the offering.
What is a specific concern related to data for SCPs?
How firms must consider production integrity, security, and privacy risks related to data.
What is a key consideration regarding product data ownership for SCPs?
How to manage ownership and access to rights to product data.
Which of the following is NOT a capability of smart, connected products (SCPs) mentioned in the text?
Customization
How can smart, connected products contribute to improved safety according to the text?
Through their ability to autonomously respond to changes
What is the relationship between the capabilities of SCPs and their value?
The value of SCPs grows exponentially as they become more connected
What can be inferred about the role of algorithms in the context of smart, connected products?
Algorithms are embedded in SCPs to control their responses to changes
Based on the information provided, which of the following statements is TRUE about the monitoring capability of SCPs?
Monitoring can utilize both internal sensors and external data sources
Which of the following statements best describes the relationship between the capabilities of SCPs mentioned in the text?
Monitoring is a prerequisite for control, which enables optimization and autonomy
According to the information provided, what is a potential advantage of the rich flow of monitoring data generated by SCPs?
It enables companies to optimize the performance of SCPs in new ways
Based on the information provided, which of the following statements is NOT true about the capabilities of smart, connected products?
Optimization is achieved through continuous software updates and upgrades
What is one of the implications of smart connected products on organizational structure?
Formation of dedicated data groups for cross-functional insights
How do smart connected products impact manufacturing processes?
Requirement of cloud-based technology stack for operation
What is a key aspect of the product design principles for smart connected products?
Integration of augmented reality and new user interfaces
How do smart connected products transform the value chain?
Through a shift from mechanical to software engineering
What is a significant change in customer relationships due to smart connected products?
Shift towards maximizing customer value over time
How do smart connected products enhance after-sale service?
By enabling preventive and proactive service strategies
What is the role of the Center of Excellence in organizations transitioning to smart connected products?
Providing key expertise on SCPs
What is a key advantage of developing smart connected products (SCPs) in-house?
Internalizing key skills and retaining control over features and functionality
What is a crucial consideration regarding data for smart connected products?
Determining the approach to transparency in data collection and use
How should companies manage ownership and access to rights to their product data for smart connected products?
Seek joint ownership with partners to foster collaboration
What is a key consideration when deciding whether to disintermediate distribution channels or service networks for smart connected products?
Evaluating the potential impact on customer relationships
What is a potential drawback of a closed system for developing smart connected products?
Significant investment required for a single manufacturer
What data must companies capture, secure, and analyze to maximize the value of their smart connected product offerings?
Data that creates tangible value for functionality
What is a potential benefit of an open system for developing smart connected products?
Enabling end customers to assemble solutions from different companies
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?
The significant investment required for in-house development
Which factor should primarily determine whether a product's functionality is embedded in the physical product or hosted in the cloud?
The need for quick response time or automation
What is a key consideration when deciding whether to pursue an open or closed system for smart connected products (SCPs)?
The level of control desired over the product ecosystem
Which of the following factors would favor hosting a product's functionality in the cloud rather than embedding it in the physical product?
The product requires frequent upgrades and changes
Which of the following statements about network availability, reliability, and security is true?
Embedding software in the product minimizes network dependence and mitigates security risks
Which of the following statements about the location of product use is true, according to the text?
Products operated in remote locations can mitigate dangers and costs by hosting functionality in the cloud
Which of the following statements about the nature of the user interface is true?
Complex user interfaces should be hosted in the cloud to allow for easier updates and changes
Based on the information provided in the text, which of the following statements about upgrading and changing products is true?
Cloud-based applications allow for easier product changes and upgrades compared to embedded functionality
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?
Pursue a closed system approach
How does optimized production through smart, connected products create value for customers according to the text?
By reducing fixed costs and enabling higher output or throughput
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?
Increasing product differentiation and value-added services, moving competition beyond price
How can smart, connected products potentially increase rivalry among existing competitors?
By enabling mass customization and tailoring offerings to specific segments
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?
All of the above are listed as new obstacles to entry in the text
How can smart, connected products potentially reduce the threat of substitute products according to the text?
By offering superior performance, customization and customer value
How can smart, connected products disrupt traditional supplier relationships and bargaining power?
Both A and B are ways mentioned in the text
Which of the following is NOT listed as a new capability or consideration for companies developing smart, connected products?
Transitioning manufacturing operations to high-volume production
How can smart, connected products enable companies to redefine industry boundaries?
By shifting the basis of competition to product systems and integrated solutions
What is the primary focus of Discovery-Driven Planning (DD) compared to Stage-Gate Innovation?
Identifying and managing key assumptions and risks in the early stages
How does Discovery-Driven Planning differ from Stage-Gate Innovation in terms of flexibility?
DD is more flexible, allowing for iteration and learning
According to the information provided, how does Discovery-Driven Planning approach risk management?
It places greater emphasis on risk management by identifying and testing assumptions early
What is the primary difference between Stage-Gate Innovation and Discovery-Driven Planning?
Stage-Gate focuses on managing the entire innovation process, while DD focuses on the early stages
Which statement best describes the approach of Discovery-Driven Planning to innovation?
It recognizes innovation as an uncertain process where initial assumptions may need revision
How does Stage-Gate Innovation approach risk management compared to Discovery-Driven Planning?
Stage-Gate focuses on managing risk primarily at specific decision points
Which statement best describes the flexibility of Discovery-Driven Planning compared to Stage-Gate Innovation?
DD is more flexible, allowing for iteration and learning during the innovation process
How does Discovery-Driven Planning approach the early stages of innovation compared to Stage-Gate Innovation?
DD focuses on identifying and managing key assumptions and risks in the early stages
What was the fundamental shift in how companies generate new ideas and bring them to market?
Adopting an open innovation model utilizing external ideas and pathways
What is the primary focus of innovation investors and benefactors according to the text?
Providing funding and resources for innovation efforts
Which mode of innovation involves companies generating value by commercializing internal ideas through channels outside of their current business?
Open Innovation
What is a key strategy mentioned for fostering intrapreneurship within an organization?
Creating an internal venture capital program
Which of the following is NOT a mode of innovation mentioned in the text?
Disruptive Innovation
What is a potential drawback of a closed system for developing smart connected products?
Limited ability to incorporate external ideas and technologies
What is a key consideration when deciding whether to pursue an open or closed system for smart connected products (SCPs)?
The ability to incorporate external ideas and technologies
What is a crucial consideration regarding data for smart connected products?
Ensuring data security and privacy
What is one way in which smart connected products can increase buyer power, as per Porter's Five Forces analysis?
Enhancing direct cost savings for buyers
How do smart connected products impact the bargaining power of suppliers?
Introducing new suppliers through the physical-to-software shift
What is a potential drawback of SCPs for companies according to the text?
Increasing vulnerability to price pressure
How are smart, connected products transforming the nature of customer relationships?
By broadening the value proposition beyond products
Which factor contributes to the vulnerability of companies to price pressure in the context of SCPs?
Higher upfront software development costs
What is one way in which SCPs can differentiate competition away from price alone?
Enabling segment customization and pricing based on usage data
How do SCPs impact industry boundaries?
By shifting the basis of competition from discrete products to product systems
Why do companies need to build new capabilities when embracing digital technology according to the text?
To adapt to the changing landscape and remain competitive in the digital era
What is a key capability of smart, connected products (SCPs) that enables new product functionality?
All of the above
How do smart, connected products impact the manufacturing process?
All of the above
What is a key shift in customer relationships due to smart, connected products?
All of the above
Which new organizational unit is required to manage the customer experience with smart, connected products?
Customer Success Management
How can smart, connected products improve after-sales service?
All of the above
What is a key product design principle for smart, connected products?
All of the above
Which capability of smart, connected products enables autonomy?
The combination of all three
What is a key shift in organizational focus due to smart, connected products?
All of the above
What is the primary focus of 'Innovation Architects' according to the text?
Developing architectures to partition complexity
What distinguishes 'Innovation Merchants' from other innovators mentioned in the text?
Their activities are commercially driven, focusing on codifying technologies into intellectual property
What is a potential disadvantage of 'Direct-Internal' corporate venturing?
High resource commitments and managerial involvement
What is a key advantage of 'Indirect-External' corporate venturing?
Access to new markets, innovative technologies, and learning
Which form of corporate venturing involves the corporation investing in a venture capital fund designed to encourage internal ventures?
Indirect-Internal
What is a common characteristic of 'Innovation Missionaries' according to the text?
Advance technologies to serve a cause without seeking financial profits
'Direct-External' corporate venturing involves the corporation acquiring equity in which type of firm?
External entrepreneurial firm outside the corporation
What is the primary purpose of Monitoring in smart connected products?
Tracking a product´s condition, operation, and external environment
How does Autonomy in smart connected products primarily improve the product?
Improves safety
What is a potential advantage of the rich flow of monitoring data generated by SCPs?
Enables companies to optimize performance in new ways
Why do companies consider changing their business models with SCPs?
Value grows exponentially as products become more connected
How do SCPs impact industry boundaries?
They shift industry boundaries
What is a key consideration when developing SCPs in-house?
Deciding whether to develop the full set of capabilities internally or outsource
How can smart, connected products potentially reduce the threat of substitute products?
By increasing buyer power
What is the primary benefit of Optimization in smart connected products?
Enables companies to optimize performance in new ways
What should companies decide when considering which set of capabilities and features to pursue for smart connected products?
Decide which features deliver real value
What factor should determine how much functionality is embedded in the physical product versus in the cloud for smart connected products?
Cost
In what type of products should complex user interfaces be hosted according to the text?
In the cloud
Why is embedding software in the product preferred for network availability, reliability, and security?
Minimizes network dependence
In what type of product should full automation be included?
Physical product
What type of product is suitable for hosting functionality in the cloud to mitigate dangers and costs in remote locations?
Products operated in remote locations
Why should cloud-based applications be considered for frequent upgrades?
Easily make product changes and upgrades
What should companies consider when deciding whether to pursue an open or closed system for smart connected products?
Closed system
What are some strategies developed by Alcatel-Lucent to encourage intrapreneurship?
Create an internal venture capital program, build a culture of innovation, encourage risk-taking and experimentation, measure and track progress, empower employees
According to Chesbrough (2003), what is the fundamental shift in how companies generate new ideas in the era of open innovation?
Companies now generate their own ideas and then develop, manufacture, market, distribute, and service them.
What is the concept of Open Innovation as described by Chesbrough (2003)?
Firms commercialize external (as well as internal) ideas by deploying outside (as well as in-house) pathways to the market.
How do companies generate value for the organization through Open Innovation?
By commercializing internal ideas through channels outside of their current business.
What are some modes of innovation mentioned in the text?
Funding innovation through innovation investors and benefactors.
What is the role of an Innovation Investor according to the text?
To supply fuel for innovation, which used to be part of the R&D budget but now includes VC, angel investors, etc.
What are some key takeaways regarding fostering intrapreneurship within an organization?
Create a culture of innovation, encourage risk-taking, measure progress, and empower employees.
How do companies shift towards Open Innovation practices as discussed in the text?
By commercializing both external and internal ideas through various pathways to the market.
What is the primary purpose of SCPs according to the text?
Data storage, analytics, and enabling new product capabilities
How are SCPs influencing the way firms interact with their customers?
Creating continuous and open-ended relationships
What key changes are happening in the work of every function in the value chain due to SCPs?
Reshaping with new product capabilities and data
How are SCPs transforming the value chain in terms of product design principles?
Shift from mechanical to software engineering
What is the impact of SCPs on after-sale service?
Improving efficiency and enabling preventive service
What new expertise and culture are needed by manufacturers of SCPs?
Software expertise and cross-functional coordination
What implications do SCPs have on organizational structure in terms of data management?
Creating dedicated data groups and unified data organizations
What are the key organizational units required for managing SCPs according to the text?
Dev-Ops and Customer Success Management
What are the advantages of developing smart connected products in-house?
Companies internalize key skills and infrastructure, retain control over features and functionality, and may capture FMA.
What data must the company capture, secure, and analyze to maximize the value of its offering?
Firms must consider how each type of data creates tangible value for functionality, and also consider production integrity, security, and privacy risks.
How can the company manage ownership and access to rights to its product data?
Companies may pursue outright ownership of product data or seek joint ownership.
Should the company fully or partially disintermediate distribution channels or service networks?
It depends on the company's strategy and goals.
What are the advantages of developing the technological stack for smart connected products internally?
Internal development allows companies to control and optimize all parts of the system.
What are the benefits of an open system for smart connected products?
It enables end customers to assemble parts from different companies and boosts sales.
What are the risks associated with developing the full set of smart connected product capabilities internally?
It requires significant investment and works best when a single manufacturer has a dominant position.
What factors must firms consider regarding data for smart connected products?
They must consider how each type of data creates tangible value for functionality and production integrity, security, and privacy risks.
What is the main difference between Stage-Gate Innovation and Discovery-Driven Planning?
Flexibility
How does Discovery-Driven Planning differ from Stage-Gate Innovation in terms of risk management?
DD places greater emphasis on identifying and testing assumptions early in the innovation process.
Why does Discovery-Driven Planning emphasize early identification and testing of assumptions?
To adjust plans accordingly.
What is the primary focus of Stage-Gate Innovation compared to Discovery-Driven Planning?
Management of innovation process.
How does Discovery-Driven Planning manage risk compared to Stage-Gate Innovation?
By identifying and testing assumptions early in the innovation process.
What role does flexibility play in the difference between Discovery-Driven Planning and Stage-Gate Innovation?
DD is more flexible than SG, allowing for more iteration and learning during innovation projects.
What is the emphasis of Discovery-Driven Planning regarding risk management during the innovation process?
To identify and test assumptions early.
How does Discovery-Driven Planning approach risk management differently from Stage-Gate Innovation?
By adjusting plans accordingly based on early assumptions testing.
How can smart, connected products impact the bargaining power of buyers according to Porter's Five Forces analysis?
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.
What is a key aspect of the product design principles for smart, connected products?
Hardware standardization through software-based customization.
How do smart, connected products affect the traditional supplier relationships and bargaining power?
Smart, connected products shake up traditional supplier relationships by redistributing bargaining power.
What is the impact of smart, connected products on manufacturing processes?
Smart, connected products lead to higher fixed costs and lower variable costs due to increased upfront costs of software development and complex product design.
How can smart, connected products create a competitive advantage in terms of design?
Smart, connected products offer a whole set of new product principles that focus on hardware standardization through software-based customization.
What are some key considerations regarding data for smart, connected products?
Companies need robust security management, authentication processes, secure data storage, and protection against hackers.
How do smart, connected products reframe the basis of competition according to the text?
Smart, connected products shift the basis of competition from discrete products to product systems consisting of closely related products.
What is the potential impact of smart, connected products on the threat of substitutes in the market?
Smart, connected products can offer superior performance, customization, and customer value, reducing substitution threats and improving industry growth and profitability.
What are some strategies Alcatel-Lucent developed to encourage intrapreneurship?
Create an internal venture capital program, build a culture of innovation, encourage risk-taking and experimentation, measure and track progress, empower employees
According to Chesbrough (2003), what is the fundamental shift in how companies generate new ideas and bring them to the market?
Closed Innovation to Open Innovation
What is Open Innovation as described by Chesbrough (2003)?
Firms commercialize external (as well as internal) ideas by deploying outside (as well as in-house) pathways to the market
What are the modes of innovation discussed in the text?
Funding Innovation, Innovation Investors and Benefactors, Innovation Investor
How do companies generate value for the organization through Open Innovation?
By commercializing internal ideas through channels outside of their current business
What are the key takeaways from the text regarding fostering innovation and entrepreneurship?
Create internal venture capital program, build culture of innovation, encourage risk-taking and experimentation, measure and track progress, empower employees
How does Open Innovation differ from Closed Innovation in terms of idea generation and commercialization?
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.
What is the significance of empowering employees in fostering innovation within an organization?
Empowering employees can lead to increased creativity, idea generation, and a culture of innovation.
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?
Significant investment and control over features, functionality, and product data.
What data must a company capture, secure, and analyze to maximize the value of its smart connected product offering?
Data that creates tangible value for functionality, production integrity, security, and privacy risks.
How does a company manage ownership and access to rights to its product data for smart connected products?
Companies may pursue outright ownership or joint ownership of product data.
Should a company fully or partially disintermediate distribution channels or service networks for smart connected products?
Companies need to decide based on their strategy and goals.
What is the impact of developing smart connected products in-house for a company?
Internalizing key skills and infrastructure, retaining control over features and functionality.
What is a potential obstacle for potential new competitors in an industry with smart, connected products?
Significant investment required to develop SCP capabilities.
How do smart connected products potentially shift the bargaining power of buyers according to Porter's Five Forces analysis?
By increasing rivalry among existing competitors.
What is a key consideration regarding data for smart connected products?
Understanding how each type of data creates tangible value for functionality.
How did KAESER improve its systems and reduce maintenance costs?
By developing a new digital platform
What approach did Danske Bank adopt to transform its business while maintaining traditional banking operations?
Dual-track approach
What were some challenges faced by Danske Bank during its digital transformation journey?
Building new capabilities, changing organizational structure, managing risks
How did Danske Bank manage the challenges associated with introducing new digital services?
By investing in new talent, partnering with fintech startups, leveraging agile development methodologies
What are some key takeaways from the digital transformation journey of Danske Bank?
Adopt dual-track approach, build new digital capabilities, partner with fintech startups, leverage agile development methodologies
How did leveraging agile development methodologies help Danske Bank during its digital transformation?
To manage risks associated with introducing new digital services
What was the strategy adopted by KAESER to remain competitive in the industry?
Embrace digital technologies and Industry 4.0 technologies
How did Danske Bank transform its business model to remain competitive?
By adopting a platform business model
Learn about how Alcatel-Lucent fostered innovation and entrepreneurship within its organization, the challenges faced in the telecommunications industry, and the strategies developed to encourage intrapreneurship. Discover key takeaways such as creating an internal venture capital program, building a culture of innovation, and empowering employees.
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