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Questions and Answers
Kodak managers easily adapted to the new business environment of digital imaging.
Kodak managers easily adapted to the new business environment of digital imaging.
False
Novo Nordisk was the first company to introduce insulin pens to the market.
Novo Nordisk was the first company to introduce insulin pens to the market.
True
Eli Lilly's HUMULIN was recognized as a disruptive product in the insulin market upon its release.
Eli Lilly's HUMULIN was recognized as a disruptive product in the insulin market upon its release.
False
Eli Lilly's main issues with insulin during the 1920s included impurity and human resistance.
Eli Lilly's main issues with insulin during the 1920s included impurity and human resistance.
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By the 1980s, Eli Lilly was no longer seen as a monopolist in the insulin market.
By the 1980s, Eli Lilly was no longer seen as a monopolist in the insulin market.
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Tesla's market capitalization is lower than that of its competitors such as GM and Ford.
Tesla's market capitalization is lower than that of its competitors such as GM and Ford.
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Tesla's financial statements report massive net losses, currently around $900M.
Tesla's financial statements report massive net losses, currently around $900M.
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Barnes & Noble was acquired by B.Dalton in 1985 for $300 million.
Barnes & Noble was acquired by B.Dalton in 1985 for $300 million.
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Tesla's business model includes a no haggle policy where prices are negotiable.
Tesla's business model includes a no haggle policy where prices are negotiable.
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Tesla shares its patents for free in order to facilitate innovation in sustainable transportation.
Tesla shares its patents for free in order to facilitate innovation in sustainable transportation.
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Barnes & Noble had sales of $2.45 billion in 1996.
Barnes & Noble had sales of $2.45 billion in 1996.
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The electrification and autonomy of vehicles are two major trends that Tesla has leveraged.
The electrification and autonomy of vehicles are two major trends that Tesla has leveraged.
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The first Barnes & Noble superstore was opened in Los Angeles in 1975.
The first Barnes & Noble superstore was opened in Los Angeles in 1975.
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Superstores had a lower price structure and offered significant discounts on books.
Superstores had a lower price structure and offered significant discounts on books.
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Tesla requires significant maintenance for its vehicles compared to traditional cars.
Tesla requires significant maintenance for its vehicles compared to traditional cars.
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Barnes & Noble's revenues were primarily driven by its mail-order book business.
Barnes & Noble's revenues were primarily driven by its mail-order book business.
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Tesla allocates a significant portion of its budget to marketing expenses.
Tesla allocates a significant portion of its budget to marketing expenses.
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Barnes & Noble adopted a diversification strategy by including seasonal calendar kiosks.
Barnes & Noble adopted a diversification strategy by including seasonal calendar kiosks.
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Tesla has incorporated 4G Wi-Fi to allow its vehicles to self-learn from other vehicles.
Tesla has incorporated 4G Wi-Fi to allow its vehicles to self-learn from other vehicles.
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The introduction of superstores had minimal impact on Barnes & Noble's market presence.
The introduction of superstores had minimal impact on Barnes & Noble's market presence.
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Barnes & Noble centralized procurement to leverage scale economies.
Barnes & Noble centralized procurement to leverage scale economies.
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Competence destroying changes often benefit established firms.
Competence destroying changes often benefit established firms.
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First movers have a disadvantage over incumbents during competence destroying changes.
First movers have a disadvantage over incumbents during competence destroying changes.
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The automotive industry has low entry barriers compared to other sectors.
The automotive industry has low entry barriers compared to other sectors.
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Standards in industries can emerge quickly in rapidly evolving markets.
Standards in industries can emerge quickly in rapidly evolving markets.
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The electric car market has already reached a mature stage with high sales figures.
The electric car market has already reached a mature stage with high sales figures.
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Technological standards can only be identified after they have definitively established themselves in the market.
Technological standards can only be identified after they have definitively established themselves in the market.
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Companies like Amazon transitioned from IT to e-commerce by leveraging existing competencies.
Companies like Amazon transitioned from IT to e-commerce by leveraging existing competencies.
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Discontinuities in technology have no effect on market share within an industry.
Discontinuities in technology have no effect on market share within an industry.
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Incumbent companies can only develop disruptive innovations through their marketing departments.
Incumbent companies can only develop disruptive innovations through their marketing departments.
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Disruptive innovations are defined prior to their launch in relation to market performance attributes.
Disruptive innovations are defined prior to their launch in relation to market performance attributes.
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Early adopters of innovations in the disk drive industry often embraced the new architectures.
Early adopters of innovations in the disk drive industry often embraced the new architectures.
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A detailed understanding of user needs is crucial for the development of new technologies.
A detailed understanding of user needs is crucial for the development of new technologies.
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Incumbents took the new disk drive models off the shelves to combat emerging competition.
Incumbents took the new disk drive models off the shelves to combat emerging competition.
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Marketing departments are primarily driven by the needs of emerging technology innovators.
Marketing departments are primarily driven by the needs of emerging technology innovators.
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The coordination between R&D and marketing functions is essential for managing disruptive innovations.
The coordination between R&D and marketing functions is essential for managing disruptive innovations.
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Sustaining innovations are developed purely based on technological advancements without customer feedback.
Sustaining innovations are developed purely based on technological advancements without customer feedback.
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Effective treatment of diabetes typically requires minimal behavioral change by patients.
Effective treatment of diabetes typically requires minimal behavioral change by patients.
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Lilly viewed their success in the diabetes care business as primarily dependent on traditional pharmaceutical strategies.
Lilly viewed their success in the diabetes care business as primarily dependent on traditional pharmaceutical strategies.
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The portable blood glucose meter developed by Miles Laboratories was designed to be used exclusively in laboratories.
The portable blood glucose meter developed by Miles Laboratories was designed to be used exclusively in laboratories.
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Data generated from blood glucose tests can be analyzed and compared to a larger patient population.
Data generated from blood glucose tests can be analyzed and compared to a larger patient population.
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Novo Nordisk's insulin pen was introduced later than Lilly's insulin pen in the market.
Novo Nordisk's insulin pen was introduced later than Lilly's insulin pen in the market.
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CDS was founded by Lilly to provide patients with diabetes-related education and resources.
CDS was founded by Lilly to provide patients with diabetes-related education and resources.
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Crowding within doctors' schedules was one of the main reasons why the diabetes treatment business became ineffective in the 1980s.
Crowding within doctors' schedules was one of the main reasons why the diabetes treatment business became ineffective in the 1980s.
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Patients with chronic diseases do not play a significant role in determining their own therapy.
Patients with chronic diseases do not play a significant role in determining their own therapy.
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Study Notes
Technology and Innovation Strategy
- Class participation: 20%
- Hackathon competition: 30%
- Written exam: 50%
What is Technology
- Technology is creating useful and enjoyable products and services.
- It encompasses machinery, tools, and knowledge.
- Product technology is embedded in final products/services.
- Process technology mediates between inputs and outputs.
- It's both practical (know-how) and theoretical (know-why).
- Technology is a broad concept involving tools, material processes, and techniques applied to human activity.
- It is situated between science and economics.
- Science provides general behavioral principles.
- Economics relates to practical life decisions.
- Research and Development (R&D) is vital to technology.
- Current R&D is highly collaborative.
The Importance of Technology
- Technology is crucial for value creation.
- Entrepreneurs transform inventions into innovations.
- Innovation drives growth and entrepreneurship in a country.
- Technology is a key driver for economic growth.
Pharmaceutical Industry
- Merck and Pfizer are major players in a fragmented market.
- The industry is growth-oriented due to aging populations and rising incomes.
- High entry barriers due to research and development (R&D) costs and patent protection.
- Major blockbusters, R&D is substantial.
- Uncertainty in research.
- Marketing and sales are crucial for pharma companies.
- Knowledge and capabilities gained in one area can often be applied to others.
Video Game Industry
- Dynastic succession (companies dominate for many years)
- Superior graphics and realistic action are important.
- Consumers are often focused on easy-to-use consoles.
- Companies are trying to generate other revenue streams beyond game sales.
- Competition is prevalent in this industry.
- Compatibility between consoles and games is an important aspect.
- Companies are in the middle of competing over how much to charge their customers.
- Some are focusing on cost and others on value.
Bookselling Industry
- The market is cyclical, concentrated on weekends and in the final quarter of the year.
- Traditional bookselling frequently relies on consignment models.
- Return rates and price competition have been major problems.
- Superstores have been a significant factor as the new standard in the market.
- Amazon's online approach disrupted the industry.
- Amazon focused on efficient logistics, large selection, and low prices.
Automotive Industry (Tesla)
- The automotive industry has high entry barriers due to massive investments in production and distribution.
- Tesla's business model is unique → direct sales model for consumers, no reliance on dealerships, open-source, no-haggle price policy.
- The company utilizes technology and software heavily, for the car.
- Tesla uses its brand image and customer base as key differentiators, and to increase its revenues.
Movies Industry (Disney/Pixar)
- Disney originally focused on distribution and merchandise, but then they made significant changes.
- Pixar's approach was different, using technology to their advantage, to create unique films.
- Strong leadership (Katzenberg vs Eisner) influences the company strategy.
- Pixar's culture of focusing on quality and story was a major asset.
- High reliance on mergers and acquisitions (M&A)
- Acquisition is valuable because of the complementary and synergistic benefits it creates.
Technology Industry (Facebook/WhatsApp)
- Facebook acquired WhatsApp for $22B.
- WhatsApp is a very successful messaging platform.
- Facebook decided to let WhatsApp operate independently in the beginning.
- Facebook was able to leverage a profitable platform on mobile phones.
- Major challenge in integrating into Facebook's ecosystem.
Toy Industry (Lego)
- Lego is characterized by fluctuating demand.
- Products have short lifecycles.
- The market is very concentrated (Mattel, Hasbro).
- Lego's business model is based on a distinctive brick system.
- The company changed its leadership and structure during a period of crisis.
- The company realized that they needed to focus more on core operations and less diversification .
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Description
Test your knowledge on significant changes in the business landscape, focusing on companies like Kodak, Novo Nordisk, and Tesla. Explore how these organizations adapted to digital innovation, market challenges, and disruptive products. This quiz covers historical and contemporary business practices.
