223 Questions
What is the main focus of 'The Innovator's Dilemma'?
Why well-managed companies may still lose market dominance
What is one way to resolve the paradox faced by well-managed companies?
Concluding that these firms were never well managed
What are the criteria for an innovation to be considered disruptive, as mentioned in the text?
Targeting non-consumers to create new markets
What is the role of quality in the adoption of a disruptive technology, according to the text?
The quality must surpass mainstream standards for adoption
What is the intended audience for 'The Innovator's Dilemma'?
A wide range of managers, consultants, and academics in various businesses
How does the text describe the product that entrants targeting low-end segments introduce?
Of lower quality than demanded by incumbents' most demanding consumers
What role does decision-making in successful organizations play in 'The Innovator's Dilemma'?
It contributes to eventual failure despite being well-managed
What are the two types of management controls discussed in the text?
Process and output controls
Why is it important to implement gates with discipline according to the text?
To prevent confusion and ambiguity
What does gate conditionality refer to in the context of project development?
Proceeding based on meeting criteria
How does project inflexibility impact post-approval learning failure?
It increases learning failure
What is market turbulence defined as in the text?
Degree of uncertainty in the market
How does gate conditionality influence the impact of strictness, objectiveness, and frequency on project inflexibility?
It weakens the impact
What is technological turbulence defined as in the text?
Frequency of technological changes
What characterizes exploitation in an organization?
Efficiency and execution
Which type of learning is associated with explorative learning?
Single-loop learning
What does exploration in an organization require?
Variation and experimentation
Which best describes the operating style of exploitation?
Uniform and restricted
What is required for explorations according to the text?
Variation and experimentation
Which type of learning questions the assumption that loyal customers and investors are always right?
Double-loop learning
What kind of structure is associated with exploration in an organization?
"Organic structure (entrepreneurial)"
Which aspect is emphasized in exploitation despite changes in business conditions?
"Efficiency"
What is the primary reason managers should view ICV as an integrated and continuous part of the company's strategic direction?
To support profitable growth objectives
How can ICV activity be seen as an important indicator for a company's future opportunities?
By analyzing the insights it provides
What does an 'all-out ICV drive' biasing the process often lead to?
Costly mistakes
What is a Stage-Gate evaluation primarily designed to do?
Control the new product development process
What do gates serve as in the Stage-Gate evaluation system?
A control point
How does properly managing ICV help avoid pitfalls according to the text?
By viewing ICV as integrated and continuous
What negative consequence may occur if ICV is desperately needed according to the text?
'Costly mistakes' may happen
How do managers benefit from seeing ICV as a source of insights?
'Strategic direction' can be informed
What is the impact of project inflexibility on post-approval learning failure?
It strengthens the impact of post-approval learning failure
What is the effect of post-approval learning failure on the market performance of novel products?
It adversely affects market performance
What difficulties do managers face when trying to innovate successfully, according to the text?
Underestimation of investment returns
What is one of the errors associated with using Discounted Cash Flow (DCF) and Net Present Value (NPV) to evaluate investment opportunities?
It underestimates real returns
Which financial tools are misapplied against successful innovation, according to the text?
Stage gate method, DCF, and NPV
What assumption does the Discounted Cash Flow (DCF) model make about an investor's preference for money over time?
Investors are indifferent to having money now or later
Which error occurs when using Discounted Cash Flow (DCF) to evaluate investments in innovation?
'Not investing will maintain the present health of the company' assumption
'Innovation Killers: How Financial Tools Destroy Your Capacity to Do New Things' was authored by whom?
Christensen, Kaufman, & Shih
What is one explanation given in the text for why successful organizations eventually fail?
The decision-making process sows the seeds of failure
What is a key criterion for an innovation to be considered disruptive?
It does not initially meet the standards of the incumbent's demanding consumers
What is required for a disruptive technology to gain acceptance among mainstream customers?
Adjustment of quality to meet mainstream standards over time
How does the text define a disruptive innovation?
An innovation that represents a business model innovation and starts at low-end footholds
What is the primary focus of 'The Innovator's Dilemma' according to the text?
Aiding managers in understanding how successful organizations eventually fail
Which type of firms does 'The Innovator's Dilemma' primarily address?
'Low-tech' or 'high-tech' companies in evolving or changing environments
Why might firms like Digital, IBM, Apple, Sears, Xerox, and Bucyrus Erie be perceived as not well managed according to the text?
They lose market dominance despite being well-managed
What is emphasized as a necessary aspect for an innovation to be disruptive?
'Turning non-consumers into consumers' through new markets
What is a key criteria for measuring the success of an intrapreneurial boot camp?
Tangible business outcomes resulting from the boot camp
What is one expected learning outcome for participants in an intrapreneurial boot camp?
Acquiring new skills and knowledge to think more creatively
What aspect of employee engagement should a program aiming to foster innovation focus on?
Promoting a culture of collaboration and innovation
How can the success of an intrapreneurial boot camp contribute to an organization's strategic goals?
By driving innovation and developing employees' skills
What is a crucial factor in designing a successful intrapreneurial boot camp?
Clearly defining goals and objectives
Which is an essential characteristic of a sustainable innovation program within an organization?
'Long-term' culture of innovation with ongoing support
What should an intrapreneurial boot camp primarily focus on achieving in terms of outcomes?
Achieving measurable outcomes supporting strategic priorities
What is a crucial aspect of employee motivation in the context of an intrapreneurial boot camp?
Fostering innovation, collaboration, and learning
What is one of the risks associated with focusing excessively on short-term results and moving on, according to the text?
Career advancement opportunities
Which of the following is NOT a reason for the consolidation of 'orphan' ICV projects into a new ventures group, as mentioned in the text?
Imitation of other companies (a management fad)
What is a potential consequence of an ICV drive that biases the process towards certain ventures?
Expensive failures
Why does ICV remain a key capability for established companies seeking to achieve renewal and growth, according to the text?
To avoid expensive failures from diversifying acquisitions
What may occur if ICV's role in corporate strategy is no longer viewed as important?
Reorganization and resource rationalizations
What happens when an organization tries to apply planning and marketing techniques developed for sustaining technologies to disruptive ones?
It is akin to flapping wings and is ineffective.
In what scenario does ICV activity serve as an important indicator for a company's future opportunities?
When there is market turbulence
How do an organization's capabilities in one context define its disabilities in another context?
By making certain processes and values ineffective in a different context.
What is one of the challenges managers face when trying to sustain corporate commitment over long periods according to the text?
Weakness of will
What often happens when companies focus on developing competitively superior products without considering their mainstream customers?
They create a vacuum at lower price points.
Why is it challenging for many companies to realize the speed at which they are moving up-market?
Because they over-satisfy the needs of their original customers.
How do companies create opportunities for competitors using disruptive technologies, according to the text?
By staying focused on existing customer needs.
What is the consequence of not measuring how mainstream customers use products, according to the text?
Entry point for competitors using disruptive technologies
How can companies catch the changing basis of competition in the markets they serve?
By carefully measuring how mainstream customers use their products
What happens when companies move rapidly towards high-performance, high-margin markets?
They create opportunities for competitors with disruptive technologies.
What is a key disadvantage of emphasizing Earnings Per Share (EPS) as the primary indicator of value creation?
It encourages investing in projects with immediate payoffs only.
How does Discovery-driven planning differ from stage gate planning?
It uses an assumption checklist to guide project planning.
What was the primary aim of reinstating boot camps at Alcatel-Lucent in 2014 according to the text?
To enhance innovation and replace old products with new ones.
How does the text view the use of fixed and sunk costs in evaluating future investments for incumbent firms?
As unfairly disadvantaging incumbent firms.
What does the text imply about focusing on the competitive lifetime of an asset?
It hinders innovation and adaptive responses.
In the context of the text, what is a key purpose of having a rigorous Discovery-driven planning process?
To use assumptions as a basis for continuing project plans.
What does the text suggest about using boot camps as a strategy for fostering innovation?
'Boot camps' refer to intensive innovation programs that can drive change.
How does the appointment of a new CEO at Alcatel-Lucent lead to a change in strategy related to boot camps?
It brought back boot camps with a focus on innovation and new products.
What is the primary focus of competition in regimes of low appropriability according to the text?
Cost and differentiation
When do sales of all versions of a new technology typically peak according to the text?
After the emergence of a dominant design
What happens if there is an accelerated rate of variation in the pace of innovation according to the text?
Less technical advance during periods of incremental change
What does building ambidexterity into an organization refer to according to the text?
Simultaneously executing today's strategy and developing tomorrow's
What do regimes of low appropriability lack, leading to a shift in competition according to the text?
Intellectual property protection
In what types of periods does variation primarily occur according to the text?
Both technological discontinuities and eras of ferment
What is the result of competence-enhancing discontinuities in a product class?
Order-of-magnitude increase in the efficiency of producing a given product
How do competence-enhancing discontinuities impact the barriers to entry in a product class?
Increase them
What effect do competence-destroying discontinuities have on barriers to entry?
Decrease them
Technological discontinuities drive sharp decreases in __________.
Price-performance or input-output ratios
What happens to the entry-to-exit ratio when new firms enter previously impenetrable markets due to competence-destroying discontinuities?
Increases
Which characteristic is likely to be higher after a technological discontinuity?
Environmental munificence
How do competence-enhancing discontinuities influence the minimum scale requirement for a company?
Increase it
What is one critical characteristic of organizational environments mentioned in the text?
Environmental munificence
What is the impact of low social support and high performance management in an organizational context?
Burnout context
Which aspect should low-performance contexts prioritize according to the text?
Performance management over social support
What lesson should organizations learn regarding building an ambidextrous environment from the text?
Focus on a few levers affecting many employees
What is the 'erosion effect' as described in the text?
Lower hierarchical employees rate organization's ambidextrous characteristics lower
How does the text suggest viewing contextual and structural ambidexterity?
As complements
What is the advised approach for structural separation in an organization?
Temporary means for new initiatives
Why is consistency and quality of communication important according to the text?
To mitigate 'erosion effect'
What is the ultimate goal regarding structural separation in an organization?
'Reintegration with mainstream organization asap'
What does market turbulence refer to in the context of the text?
The instability and uncertainty in a firm's marketplace
How does gate conditionality benefit project teams according to the text?
It allows for meeting criteria at a later stage, providing more freedom for changes
What is the primary impact of project inflexibility on team learning according to the text?
Overlooking knowledge gaps and reduced motivation
How does the text describe the role of technology turbulence in industries?
The frequency of technology changes within an industry
In what scenario do project specifications become difficult to change once presented at the gate?
When they are used as objective criteria for all projects
What is one consequence of focusing excessively on short-term results and neglecting innovation according to the text?
Reduced learning opportunities for the team
How does effective learning take place, according to the text?
perceived knowledge gap, motivation to acquire new knowledge, and cognitive freedom to process new input
What initiates an era of intense technical variation and selection according to the text?
Technological discontinuities
When does the era of ferment typically follow?
After incremental technical progress
What leads to increased interdependence and enhanced competence according to the text?
Incremental change
What characterizes the era of ferment according to the text?
Substantial variation and selection pressures
What follows the era of ferment in technological change?
Incremental technical progress
During which period do existing practitioners often increase the innovativeness and efficiency of the existing technological order?
After a competence-destroying discontinuity
What characterizes the selection processes during the era of ferment according to the text?
Competition between technical regimes and design competition
Which phase is typically longer after a competence-destroying discontinuity?
The era of ferment
Why do managers often choose to buy back company stock instead of investing excess cash in potentially disruptive products?
To improve short-term EPS and stock prices
What is one drawback mentioned in the text regarding the decision criteria for innovation?
They do not consider projected revenue or profits
How do equity prices typically respond to upside earnings surprises in the short term?
Increase
What is one factor contributing to the focus on EPS growth, according to the text?
Risk of overtures from outsiders when stock prices are high
What is the underlying problem associated with managers' bias against investments compromising near-term EPS?
Reduced cash flow for future investments
Why are equity prices influenced by upside earnings surprises in the short term, according to the text?
To align with others' perception of success
What initiates competence-destroying discontinuities according to the text?
New firms
What drives technological progress once a dominant design emerges?
Individual genius
How is technology defined in the text?
Tools, devices, and knowledge that mediate between inputs and outputs
What characterizes the rate of product variation when a new product class opens?
Becomes substantial
What type of innovations drive technological progress over successive discontinuities?
Incremental improvements
What signals the end of the period of technological ferment according to the text?
Dominance of a particular design
What is the primary purpose of a Stage-Gate evaluation in product development?
To allow only projects meeting screening criteria to proceed
Why do managers become enthusiastic about using the stage-gate control system?
Because it improves speed to market and resource allocation efficiency
What do process controls in product development management primarily focus on?
Directing task performance methods and procedures
Why might product development teams be concerned about meeting gate criteria?
To secure funding for new projects
What is the main benefit of using a Stage-Gate evaluation over traditional project management approaches?
Improved efficiency and resource allocation
How does process management contribute to organizational routines in product development?
By stabilizing routines and tightening linkages among them
Why do product development teams strive to meet rigorous gate criteria?
To ensure efficient resource allocation
What do process discontinuities result in?
An order-of-magnitude increase in the efficiency of producing a given product
What is a critical characteristic of organizational environments associated with uncertainty?
The extent to which future states of the environment can be anticipated or accurately predicted
Competence-enhancing discontinuities consolidate leadership in a product class leading to:
Fewer entries relative to exits
What do competence-destroying discontinuities break according to the text?
Existing order within a product class
What is one important dimension of competitive conditions mentioned in the text?
Degree of order within a product class only
What happens after a technological discontinuity according to the text?
Demand and environmental munificence increase
What do competence-enhancing discontinuities result in for barriers to entry in a product class?
Increasing the barriers to entry
What is the primary focus of Discovery-driven planning as described in the text?
Rapidly testing assumptions at low cost
What is the key difference between traditional project planning and Discovery-driven planning mentioned in the text?
Discovery-driven planning outlines assumptions before numbers
How does the text suggest project teams can overcome the hurdle rate in securing funding?
Tweaking numbers to be more favorable
What is the purpose of rank-ordering items on the assumptions checklist in Discovery-driven planning?
To prioritize deal killers and easily testable assumptions
How does the text describe the action to be taken if critical assumptions are found to be invalid?
Killing the project if no plausible assumptions support it
What is the main focus of successful implementation of Discovery-driven planning according to the text?
Quickly and at low cost testing critical assumptions
'Discovery-driven planning reverses the sequence of some steps in the stage-gate process.' How is this reversal beneficial according to the text?
It prioritizes testing critical assumptions early in project stages
What do competence-enhancing discontinuities result in for barriers to entry in a product class?
Increase barriers to entry
What is the primary impact of competence-destroying discontinuities on barriers to entry?
Lower barriers to entry
What is a critical characteristic of organizational environments associated with uncertainty?
Predictability
What drives sharp decreases in price-performance or input-output ratios?
Technology discontinuities
What occurs if ICV's role in corporate strategy is no longer viewed as important?
Increase in interfirm sales variability
What initiates competence-destroying discontinuities according to the text?
Break the existing order
What follows an era of intense technical variation and selection in the cyclical model of technological change?
Incremental technical progress
What happens to sales after a dominant design emerges according to the text?
They peak
What does the text suggest about discontinuities becoming dominant designs?
Discontinuities never become dominant designs
What characterizes the era of ferment in the cyclical model of technological change?
Competition between technical regimes and within new regimes
How are dominant designs selected in the sociocultural evolutionary process of technological change?
By social, political, and organizational dynamics
What is the impact of a competence-destroying discontinuity on the length of the era of ferment?
It prolongs the era of ferment
How do existing practitioners typically respond to new technologies during the era of ferment?
Increase innovativeness and efficiency of existing technological order
What leads to increased interdependence and enhanced competence according to the text?
Incremental change
What characterizes a product discontinuity as mentioned in the text?
It introduces sharp price-performance improvements.
How are process discontinuities reflected according to the text?
They cause radical improvements in industry-specific dimensions.
What kind of changes are associated with major changes in skills, distinctive competence, and production processes?
Competence-destroying changes
How are product discontinuities different from process discontinuities?
Product discontinuities involve process substitution.
What keeps existing firms committed to outmoded technology?
Political constraints
What do competence-destroying discontinuities necessitate according to the text?
The development and production of the product require new skills and knowledge
What is reflected by process discontinuities as mentioned in the text?
New way of making a given product
What do major technological innovations render older technologies compared to the new technology?
'No increase in scale, efficiency, or design can make them competitive'
If a company wants to capture unanticipated opportunities in the new economy, what should they focus on?
Crafting a few simple rules to guide strategic processes
What is the key factor that dictates the processes a company chooses according to the text?
Opportunities and constraints
What are the 5 types of simple rules mentioned in the text?
How-to rules, Boundary rules, Priority rules, Resource allocation, Timing rules
What should simple rules NOT be according to the text?
Broad and vague
In chaotic markets, what does the text recommend companies do?
Jump into chaotic markets and probe for opportunities
What does the text suggest is crucial for companies to succeed in the new economy?
Capturing unanticipated opportunities
Why should companies have fewer rules in changing markets?
To increase efficiency
Where do simple rules typically originate from?
Experience and mistakes
What is a potential risk when managers become too tentative in pursuing uncertain opportunities?
Quick retreat from opportunities
How does gate conditionality impact project inflexibility in the Stage-Gate evaluation system?
Mitigates inflexibility by allowing partial criteria fulfillment
What does project inflexibility lead to according to the text?
Learning failure
Why might strictly enforced and objective evaluation criteria make projects more inflexible?
To restrict project flexibility
What is the outcome of repeated application of strictly enforced and objective evaluation criteria for projects?
More inflexibility
How do simple rules in companies relate to predictability and focused opportunities?
Aid in providing guidance
What typically follows a period of incremental technical progress?
A single dominant design
Why do dominant designs sometimes lack behind the industry's technical frontier?
Because they are unreliable
What characterizes the era of ferment in technological change?
Substantial variation and selection pressures
How are dominant designs selected in technological change?
By social and organizational dynamics
What tends to happen during the era of ferment following a competence-destroying discontinuity compared to a competence-enhancing discontinuity?
Longer era of ferment
What is a key factor that leads to increased interdependence and enhanced competence in technological change?
Social, political, and organizational dynamics
What happens when existing practitioners respond to new technologies during the era of ferment?
Enhanced efficiency of existing technological order
How do dominant designs differ from technological discontinuities in their impact on an industry?
They fail to become the best in technical terms initially
What is the primary purpose of stage-gate evaluation in the context of product development?
To allow projects meeting criteria to proceed while eliminating bad projects
What are the two types of management controls mentioned in the text?
Process and output controls
Why do product development teams become enthusiastic about using stage-gate control according to the text?
Because it improves speed to market and allocates resources efficiently
What is a characteristic of rigorous gate criteria as mentioned in the text?
Consistency in application
What is the focus of process management techniques as discussed in the text?
Improving efficiency and reducing variation
How do process controls direct according to the text?
By specifying output goals and standards
Why do senior management and product development team representatives hold meetings according to the text?
To enable projects meeting criteria to advance while eliminating bad projects
'Gate conditionality' in the context of project development refers to:
'Gate-conditional' project approvals
What is a key attribute of organizational context in facilitating individual ambidexterity?
Stretch
Which behavior is NOT mentioned as part of an individual's ambidextrous behaviors in the text?
Seeking permission before acting
What role do top managers play in shaping organizational context?
Defining incentives and controls
Which term describes the simultaneous pursuit of alignment and adoptability at the organizational level?
Contextual ambidexterity
What is emphasized as a crucial aspect for individuals to exhibit ambidexterity?
Taking initiative beyond job confines
What is the primary focus of top managers in reinforcing organizational context according to the text?
Shaping systems and controls
How do employees contribute to reinforcing organizational context?
Through behaviors and attitudes aligned with company goals
What is a key factor that defines contextual ambidexterity at the organizational level?
'Stretch' - employees' orientation towards adaptability and alignment
Why do managers often choose to buy back company stock instead of making investments that may compromise near-term EPS?
Buying back stock restricts the flow of cash available for disruptive products and business models.
What short-term measures do managers prioritize due to concerns about their reputations?
Quarterly earnings
Why do investors tend to overlook rational measures of long-term performance according to the text?
Investors are incentivized by upside earnings surprises in the short term.
What negative consequence arises when decisions are made based solely on projected revenues/profits and risks?
Lack of consideration for disruptive innovation potential
What key issue arises when disruptive plans are compared with incremental plans according to the text?
Disruptive plans are typically undervalued.
What problem does the text identify with decision criteria based solely on projected revenues/profits and risks?
'Stage-gate' innovation becomes less effective
How does the focus on stock price and short-term performance measures impact CEOs' decision-making according to the text?
CEOs are influenced by external perceptions of success tied to stock price and short-term performance measures.
What characteristic of equity prices over the short term makes it challenging for investors to focus on long-term performance?
'Upside earnings surprises' driving positive reactions
What does the text suggest about the importance of refining and updating knowledge in product development?
It is crucial to prevent errors and ensure the product's relevance in the market.
What negative consequence does mismatch lead to within a team?
Increased frustration which worsens attention to new information
What common error does the text mention when comparing the base case of not investing against cash flows from innovation?
Parmenides’ Fallacy
Why does the text warn against using Discounted Cash Flow (DCF) and Net Present Value (NPV) for evaluating investment opportunities in innovation?
Because it underestimates real returns and benefits.
What concept is associated with measuring whether a company's present health will persist indefinitely into the future if an investment is not made?
Parmenides’ Fallacy
Innovative products with high novelty involve a great deal of which type of learning activities?
Exploratory learning activities
What does the text indicate about the relationship between learning in subsequent stages of product development and obtaining all necessary input in the initial stages?
Learning in subsequent stages becomes more critical when all input is obtained initially.
What negative outcome does the text suggest if a project team fails to refine and update its knowledge throughout the development process?
Product becoming inappropriate for the market
Learn about the significance of managing Integrated Corporate Valuation (ICV) effectively to avoid pitfalls and align with the company's strategic direction. Discover why ICV should be viewed as a continuous and integrated part of the organization.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
