Technology and Innovation Strategy Quiz

Study Notes

Technology is about creating useful and enjoyable things (production).
It includes machinery, tools, and knowledge.
Product technology is embedded in final products/services.
Process technology mediates between inputs and outputs.
Technology is both practical (know-how) and theoretical (know-why).
It's about practical knowledge, skills, and tools used to develop and deliver products and services.
Technology encompasses a broader field than just Information Technology (IT).

Technology sits between science and economics.
Science provides general rules, while economics focuses on practical application and decision-making.

Technology is crucial for creating value.
Entrepreneurs transform inventions into innovation.
Imitation leads to further inventions and innovation cycles.
Entrepreneurial activity drives growth for a country.
Technology is the engine of economic growth.
Technological advancements, particularly digital technology, have a self-sustaining growth effect.

The pharmaceutical industry is characterized by fragmentation and consolidation.
The industry is growth-oriented, driven by increasing life expectancy and incomes.
Major markets are North America, Europe, and China.
High entry barriers due to significant R&D costs and patent protection.
Major players strive to maintain or gain market share.
Drug development is a long and uncertain process.
Knowledge and capabilities accumulated in one therapeutic area can be leveraged in other areas.
Development of new drugs is crucial for the industry's growth.

The video game industry has evolved from arcade games to home consoles.
Dynastic succession (evolving throughout the years) is a defining characteristic.
Console features (e.g. graphics, input), price, and timely distribution are very important determinants of success.
The target market is primarily children and teenagers.

The US book industry is around $26 billion.
The market trend is towards giant "superstores."
Amazon's online model gained popularity due to lower prices and wider accessibility.

The automobile industry has high entry barriers.
Tesla is a major player in the electric car market.
Tesla's business model emphasizes direct sales, open innovation, and digital resources.

Kodak's success stemmed from its black and white and color film products.
Kodak failed to adapt to the digital era effectively due to a hesitation to change.
The rise of digital photography was a major disruption.
Kodak's diversification initiatives to maintain leadership were unsuccessful.
Business transformation took too long.

Facebook's acquisition of WhatsApp was a significant move.
WhatsApp's strengths lie in its simplicity, focus, and accessibility.
The goal for Facebook is to allow users to connect and engage without needing a smartphone.

The toy industry features cyclical fluctuations in demand.
Lego's success is driven by its combination of strong brand recognition and consistency in the production of products.
Lego's initial success came with its distinctive brick-building system that was hard to copy.
Lego's failure to adapt led to increased competition creating a need to adapt or change to successfully compete in later years.

Eli Lilly's success was initially based on its insulin (Humulin) which was quickly adopted as a standard.
Novo Nordisk introduced insulin pens. This is a far more convenient way to administer the drug hence this disrupted the market effectively.
An effective treatment of diabetes requires a shift in consumer lifestyle and behavior.
Lilly was late to adopt user-friendly methods of product delivery.