Operations Management and R&D

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What is a characteristic of supplier-dominated firms?

They are capable of producing high volumes at low cost.

They purchase technologies in the form of products and match these to customer needs. (correct)

They have a strong R&D department.

They are usually found in high-growth industries.

Which type of firms are typically found in the high-growth industries of the twentieth century?

Housebuilding firms

Supplier-dominated firms

Science-based firms (correct)

Scale-intensive firms

What is a strength of supplier-dominated firms?

Their ability to manipulate science and technology.

Their ability to offer a product with a reliable service. (correct)

Their ability to produce high volumes at low cost.

Their capabilities in engineering, design, and manufacturing.

What is the foundation for the growth and success of science-based firms?

The manipulation of science and technology. Signup and view all the answers

What is a characteristic of scale-intensive firms?

They are capable of producing high volumes at low cost. Signup and view all the answers

Which type of firms tend to be large and include corporations such as Bayer and Sony?

Science-based firms Signup and view all the answers

What is at the heart of scale-intensive firms?

Process technologies Signup and view all the answers

Is it possible for a firm to belong to more than one category?

Yes Signup and view all the answers

What is the main benefit of ERP systems?

Reduction of data collection and processing duplication efforts Signup and view all the answers

What can help sustain innovation in an organisation?

Established management principles Signup and view all the answers

What is the name of the business software that has become one of the most successful products in the world?

Enterprise Resource Planning (ERP) Signup and view all the answers

What is the result of ERP systems on business processes?

Efficiency and effectiveness Signup and view all the answers

What is the main challenge faced by organisations that innovate successfully?

Sustaining innovation Signup and view all the answers

What is the role of ERP systems in innovation?

To hinder innovation Signup and view all the answers

What is the result of the integration of business functions by ERP systems?

Reduction of duplication efforts Signup and view all the answers

What is the main principle of ERP systems?

Standardisation and integration Signup and view all the answers

Which factor contributes to the flow of information into a firm?

Extensive external linkages Signup and view all the answers

Why is patience important for innovative firms?

It allows ideas to germinate and develop Signup and view all the answers

What is likely to happen in a company that frequently changes its investment in technology development?

Discouragement of creativity Signup and view all the answers

What is almost obvious regarding firms investing in R&D?

Increase in total innovative output Signup and view all the answers

What defines an incremental innovation?

Building upon existing component and architectural knowledge Signup and view all the answers

What does accepting risks involve?

Considering risky opportunities carefully Signup and view all the answers

Which type of innovation leaves architectural knowledge unchanged?

Modular innovation Signup and view all the answers

What is a barrier to innovation within an organizational structure?

Interdepartmental conflict Signup and view all the answers

What impact does architectural innovation have?

Great impact upon the linkage of components Signup and view all the answers

How can innovative firms attract good scientists?

By demonstrating a long-term commitment to resources Signup and view all the answers

What does the vertical axis in Figure 4.4 classify?

Project style Signup and view all the answers

What can happen to creative people in a company with a disruptive environment?

Search for a more suitable company Signup and view all the answers

What is captured by the horizontal axis in Figure 4.4?

Technological uncertainty Signup and view all the answers

What does the traditional distinction within innovation management differentiate?

Research projects and development projects Signup and view all the answers

What is one focus of project management models in the new product development literature?

Explicitly focusing on the new product development process Signup and view all the answers

What does Figure 4.3 illustrate?

Matrix of complexity of architectural/component knowledge Signup and view all the answers

What is the most obvious way forward for balancing production and development?

Separating production from research and development Signup and view all the answers

What does 'exploitation' focus on in an organization?

Efficiency and variance reduction Signup and view all the answers

What is meant by 'exploration' in the context of an organization's strategy?

Search, discovery, and autonomy Signup and view all the answers

What is ambidexterity in a business context?

Doing both exploitation and exploration Signup and view all the answers

What are dynamic capabilities in a business?

The ability to be ambidextrous Signup and view all the answers

How does incremental innovation affect an organization?

It reinforces established capabilities Signup and view all the answers

What challenge does radical innovation pose to organizations?

Encountering new problems requiring new skills Signup and view all the answers

What is one potential constraint on innovation as an organization learns and increases efficiency?

Shifting to simply meeting existing customer needs Signup and view all the answers