GIM Exam Prep PDF

**GIM 1** **What constitutes an innovation?** Innovation involves creating value from ideas. It is the combination of invention and commercialization, as defined by Cohen & Levinthal (1990). The broadest definition (ISO 56000:2020) describes it as a \"new or changed entity\" that realizes or redis...

**GIM 1** **What constitutes an innovation?** Innovation involves creating value from ideas. It is the combination of invention and commercialization, as defined by Cohen & Levinthal (1990). The broadest definition (ISO 56000:2020) describes it as a \"new or changed entity\" that realizes or redistributes value, which could be financial, social, experiential, or well-being related. **What is the difference between disruptive and radical innovation?** - **Disruptive Innovation:** Focuses on creating new markets or significantly altering existing ones by introducing products or services that eventually displace established market leaders. It often starts with inferior performance in mainstream markets but provides value in overlooked segments. - **Radical Innovation:** Represents a high degree of novelty and creates entirely new technologies, industries, or infrastructure (Garcia & Calantone, 2002). It reshapes existing frameworks and significantly impacts societal or industry systems. **What is the difference between disruptive and breakthrough innovation?** - **Disruptive Innovation:** Focuses on market disruption and usually emerges from simpler technologies that improve over time. - **Breakthrough Innovation:** Refers to significant technological advancements that solve complex problems and are often patentable but may or may not disrupt existing markets. **What is the 15%/20% rule?** The document does not explicitly mention this, but in innovation contexts, such rules typically encourage employees to spend a percentage of their time on creative projects outside their regular responsibilities, fostering innovation. **What are 'Mavericks' and 'Skunk Works'?** - **Mavericks:** Innovative thinkers who challenge conventional norms and bring new perspectives. - **Skunk Works:** Small, agile teams working on advanced, high-risk projects in an environment free from standard organizational constraints, famously developed by Lockheed Martin. **What is a strategy, and how can 'Innovation Management' become strategic?** A strategy is the long-term direction of an organization and the pattern of resource deployments to achieve objectives. Innovation Management becomes strategic when it integrates innovation into the core business strategy, focusing on long-term growth, competitive advantage, and value creation. **What are the 17 SDGs?** The 17 Sustainable Development Goals (SDGs) set by the UN for 2030 are: 1. No Poverty 2. Zero Hunger 3. Good Health and Well-being 4. Quality Education 5. Gender Equality 6. Clean Water and Sanitation 7. Affordable and Clean Energy 8. Decent Work and Economic Growth 9. Industry, Innovation, and Infrastructure 10. Reduced Inequalities 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action 14. Life Below Water 15. Life on Land 16. Peace, Justice, and Strong Institutions 17. Partnerships for the Goals **What are currently the biggest 5 megatrends in our society?** 1. Shift in Global Economic Power 2. Demographic Change 3. Urbanization 4. Rise of Technology 5. Climate Change and Resource Scarcity **What is Schumpeterian 'creative destruction'?** Schumpeter described creative destruction as the process of innovation-driven economic growth where new industries and technologies replace outdated systems, fundamentally altering market structures. **What characterizes the 'chasm' of innovation diffusion processes?** The \"chasm,\" as explained in the technology adoption lifecycle, represents the critical gap between early adopters and the majority market. Products must transition from niche acceptance to broad market adoption to achieve sustained success. **What are the flaws of 1st and 2nd generation models of NPD?** - **1st Generation (Technology Push):** Fails to address consumer needs, resulting in low predictability and sustainability. - **2nd Generation (Market Pull):** Over-relies on expressed market needs, missing opportunities for radical innovation. **Please explain Cooper's Stage-Gate-Model of NPD!** Cooper's model structures New Product Development into stages (e.g., idea scoping, business case development, testing, and launch), each separated by decision gates to evaluate progress and allocate resources effectively. **Why is 'open innovation' a revolutionary framework?** Open innovation involves leveraging external and internal knowledge sources to drive innovation, reducing risks and time-to-market while fostering collaborations with external partners. **Please explain these 5 megatrends!** 1. **Global Economic Power Shift:** Economic influence moving from developed to emerging economies. 2. **Demographic Change:** Aging populations, lower birth rates, and rising life expectancy. 3. **Urbanization:** Increasing population density in urban areas, causing infrastructural and environmental challenges. 4. **Rise of Technology:** Digital transformation, including AI, IoT, and automation. 5. **Climate Change:** Environmental pressures leading to shifts in consumption, regulations, and innovation in green technologies. **What is the 'Innovator's Dilemma'?** The concept by Christensen highlights how companies fail to adapt to disruptive technologies, focusing too heavily on improving existing products rather than embracing innovation. **Please explain the 'Curse of Past Success'!** Past success creates inertia and resistance to change, as organizations rely on established processes and avoid risk. Overcoming this involves fostering organizational ambidexterity (balancing exploitation and exploration). **Please explain sustainable innovation!** Sustainable innovation integrates environmental, social, and economic considerations into business practices, aligning with UN SDGs to create lasting value and competitive advantage while reducing negative impacts. **GIM 2** **Identify the key drivers of globalization.** 1. Technological advancements, including digital connectivity and automation. 2. Governmental policies supporting trade and global operations. 3. Market demand for diverse and accessible products. 4. Competitive pressures pushing firms to expand internationally. 5. Operational goals emphasizing cost reduction and efficiency improvements. **What are the implications of these drivers for innovation?** - **Accelerated Innovation Cycles:** Global collaboration fosters faster technology development and deployment. - **Glocalization:** The need to balance global standardization with local customization. - **Access to Resources:** Broader access to diverse talent pools, markets, and infrastructure. - **Rising Complexity:** Managing diverse regulatory environments and customer preferences globally. **Why is the decision to conduct R&D in a particular location/subsidiary complex?** R&D site selection requires balancing various trade-offs: - Access to skilled talent. - Proximity to key markets and manufacturing hubs. - Cost considerations, including salaries and infrastructure. - Geopolitical stability and intellectual property protection. - Collaboration opportunities with local universities and research institutions. **What type of factors must be considered for this decision?** 1. **Market Potential:** Size, growth rate, and strategic importance of the market. 2. **Cost Structures:** Labor, infrastructure, and operational costs. 3. **Talent Availability:** Access to skilled personnel in the chosen location. 4. **Regulatory Environment:** Policies affecting intellectual property, taxation, and ease of doing business. 5. **Cultural and Logistical Factors:** Language, cultural fit, and time zone differences. **What are the pros and cons of centralized vs. decentralized R&D?** **Centralized R&D:** - **Pros:** - Easier coordination and control of activities. - Stronger alignment with corporate strategy. - Economies of scale in resource usage. - **Cons:** - Limited responsiveness to local market needs. - Higher vulnerability to geopolitical risks in a single location. **Decentralized R&D:** - **Pros:** - Greater responsiveness to regional market demands. - Encourages diverse perspectives and innovation through local expertise. - **Cons:** - Coordination challenges across multiple sites. - Risk of resource duplication and inefficiencies. **What is the Global Innovation Index (GII) and how is it calculated?** The GII measures countries\' innovation capabilities and performance based on two pillars: 1. **Input Pillar:** Measures the resources invested in innovation (e.g., R&D spending, human capital). 2. **Output Pillar:** Assesses the outcomes of innovation activities (e.g., patents, high-tech exports). Each pillar is composed of sub-indices and indicators that provide a comprehensive innovation profile. **Identify new challenges in a digital world.** 1. **Rapid Technological Changes:** The pace of innovation in areas like blockchain and AI. 2. **Customer Preferences:** Catering to digital-native consumers. 3. **Market Disruption:** Entry of disruptive competitors. 4. **Regulatory Requirements:** Adapting to evolving regulations in cybersecurity and data protection. **How are next-gen technologies superior to current technologies?** Next-gen technologies offer: - Enhanced performance (e.g., faster processing, improved energy efficiency). - Better adaptability through AI and machine learning. - Cost reduction and scalability via cloud computing and automation. - Advanced connectivity and integration, exemplified by IoT systems. **Please explain how dominant designs emerge over time.** Dominant designs arise through a process involving: 1. **Technological Discontinuities:** Innovations that disrupt existing systems. 2. **Ferment Phase:** Period of experimentation with various designs. 3. **Selection:** Market forces identify the most viable design based on performance and customer acceptance. 4. **Retention:** The dominant design achieves widespread adoption and becomes the industry benchmark, leading to incremental improvements thereafter. **What main strategies do firms pursue when it comes to technological market segmentation?** 1. **Push Toward High-End Customers:** Targeting premium segments with advanced technologies. 2. **Stay with Existing Customers:** Serving current markets with consistent upgrades. 3. **Change Market Demand:** Shifting focus to untapped or emerging customer needs, often by creating new market categories. **Why is "being first" not always a good choice for market entry?** 1. **High Risk:** Pioneers face higher uncertainties in consumer acceptance and market size. 2. **Cost Disadvantages:** Initial entrants bear the costs of educating the market and establishing infrastructure. 3. **Follower Advantage:** Followers can learn from pioneers\' mistakes, adopt proven strategies, and outcompete them with superior execution. **Please explain the typology of market entrants by Golder and Tellis.** 1. **Pioneers (First-to-Market):** - Innovators who introduce new products or services. - Often have a short-lived market advantage due to high risks and costs. 2. **Early Followers (Second-to-Market):** - a. **Imitating Followers:** Copy the pioneer's offerings. - b. **Modifying Followers:** Improve upon the pioneer's offerings. - c. **Passing Followers:** Leverage the pioneer's groundwork to build unique strategies. 3. **Late Entrants:** - Enter the market after the risks and uncertainties have subsided. - Often focus on price competitiveness or niche markets.  **GIM 3** **What is a business model?** A business model describes the rationale of how an organization creates, delivers, and captures value. It encompasses various elements, including value propositions, revenue models, and value chains, to explain how businesses operate and achieve profitability (Osterwalder & Pigneur, 2010). **Please explain the magic triangle of business models.** The magic triangle framework addresses three core components: 1. **What (Value Proposition):** What does the business offer to its customers? 2. **How (Value Chain):** How are goods or services delivered efficiently? 3. **Who (Revenue Model):** Who are the target customers, and how is revenue generated? This triangle demonstrates the interdependence of these elements, ensuring that all align to create a sustainable business strategy. **Please explain the business model concept according to Amit and Zott.** Amit and Zott conceptualize business models as a **system of interdependent activities** driven by four design themes: 1. **Novelty-Centered Model:** Innovation-focused, introducing new activities or structures. 2. **Efficiency-Centered Model:** Reduces transaction costs through streamlined processes. 3. **Complementarities-Centered Model:** Combines resources and activities for greater value creation. 4. **Lock-In Model:** Establishes long-term relationships with customers and partners through network effects and switching costs. **What pillars define the business model canvas by Osterwalder and Pigneur?** 1. **Product:** - **Value Proposition:** The core offerings creating value for specific customer segments. 2. **Customer Interface:** - **Customer Segments:** Targeted groups. - **Customer Relationships:** Types of connections established with customers. - **Channels:** How offerings reach customers. 3. **Infrastructure Management:** - **Key Partners:** Collaborative networks. - **Key Activities:** Essential actions to operate the business. - **Key Resources:** Critical assets enabling operations. 4. **Financial Streams:** - **Cost Structure:** All incurred costs. - **Revenue Streams:** Income generated from customer interactions. **Which of the two concepts do you believe is easier to apply, and why?** The **Business Model Canvas** is easier to apply due to its **visual and structured layout**, providing a comprehensive yet simple way to map out a business\'s operations. In contrast, Amit and Zott's concept is more academic and theoretical, requiring a deeper understanding of complex interdependencies. **What determines the quality of teamwork?** Teamwork quality is determined by: 1. **Clear Communication:** Ensuring all team members understand objectives and tasks. 2. **Collaborative Environment:** Encouraging mutual respect and constructive feedback. 3. **Diverse Expertise:** Leveraging varied skills for innovative solutions. 4. **Leadership Practices:** Effective management to navigate intergenerational dynamics (e.g., digital natives vs. immigrants). **How are innovation and creativity related to each other?** - **Creativity:** Generates original and valuable ideas through divergent and convergent thinking. - **Innovation:** Applies these ideas to create tangible value. Creativity is **necessary but not sufficient** for innovation, as the latter also requires execution and resource management. **State (at least) one shortcoming within each paradigm of individual learning.** 1. **Behaviorism:** Focuses on observable actions, ignoring cognitive processes and emotional factors. 2. **Cognitivism:** Emphasizes mental processes but often neglects the role of emotions and environment. 3. **Constructivism:** Requires active participation, which can be challenging in resource-limited or rigid organizational settings. **State (at least) one shortcoming of predominantly explorative vs. exploitative approaches.** 1. **Explorative:** Risks inefficiency by focusing too much on new ideas, leading to scattered efforts and resource waste. 2. **Exploitative:** Overemphasis on refining existing capabilities can cause stagnation and vulnerability to market disruptions. **Please explain organizational knowledge conversion according to Nonaka.** Nonaka's knowledge conversion framework involves transforming tacit (implicit) knowledge into explicit knowledge and vice versa: 1. **Socialization:** Sharing tacit knowledge through shared experiences. 2. **Externalization:** Articulating tacit knowledge into explicit forms, such as documentation. 3. **Combination:** Integrating explicit knowledge from various sources to create new insights. 4. **Internalization:** Learning from explicit knowledge and embedding it back into tacit understanding. **How is digital transformation going to affect organizational ambidexterity?** Digital transformation enhances ambidexterity by: 1. **Streamlining Exploration and Exploitation:** Leveraging AI, data analytics, and automation to balance innovation with efficiency. 2. **Fostering Agility:** Quick adaptation to changing market conditions using digital tools. 3. **Improving Collaboration:** Digital platforms enable seamless information sharing across organizational boundaries, supporting both exploratory and exploitative activities. **GIM 4** **1. How can firms embed innovation?** Firms can embed innovation by focusing on several key strategies: - **Strategic Alignment:** Ensuring innovation initiatives align with the company's overall goals and vision. - **Learning Culture:** Creating an environment that encourages continuous learning and experimentation. - **Employee Empowerment:** Encouraging autonomy, recognizing achievements, and providing the tools and support necessary for innovation. - **Collaboration and Networks:** Promoting internal collaboration and connecting with external partners. - **Protecting Innovation:** Balancing open innovation with intellectual property protection to safeguard competitive advantages. **2. Core tenets of the "Leanovation" framework:** The \"Leanovation\" framework is based on three fundamental principles: 1. **Doing the right thing:** Focusing on strategic priorities and customer needs. 2. **Doing it right:** Implementing efficient processes to ensure quality and consistency. 3. **Doing it better all the time:** Emphasizing continuous improvement through feedback loops, learning routines, and innovation. Key elements include: - **Learning culture:** Encouraging knowledge-sharing and experimentation. - **Innovation mindset:** Balancing exploration (new ideas) and exploitation (refining existing ideas). - **Collaboration:** Leveraging internal and external networks for insights and resources. **3. How can firms "ANIMATE" an inventor culture?** The \"ANIMATE\" model promotes a culture conducive to innovation through seven dimensions: 1. **Agile implementation:** Quick, flexible responses to change. 2. **Nurture and stimulate creativity:** Encouraging employees to think outside the box. 3. **Inspire employees:** Motivating teams with a clear vision and diverse perspectives. 4. **Motivate employees:** Fostering a sense of purpose and encouraging them to go the extra mile. 5. **Align teams:** Ensuring everyone works towards common goals. 6. **Transparency:** Providing clear communication and visibility into processes. 7. **Empowerment:** Giving employees the freedom and resources to innovate. **4. Relationship between structural and human agility for optimal growth:** - **Structural Agility:** Refers to the organization's ability to adapt its structures, processes, and systems quickly to market changes. This includes flexible hierarchies, decentralized decision-making, and agile project management. - **Human Agility:** Involves employees\' ability to adapt, learn, and innovate. It includes fostering an adaptable mindset and providing continuous development opportunities. **Optimal Growth:**\ Achieving optimal growth requires balancing both: - **Structural agility** provides the framework for rapid adaptation. - **Human agility** ensures that employees can leverage this structure effectively. - **Alignment:** Misalignment between the two can lead to frustration (e.g., rigid structures inhibiting agile employees). **5. When do firms benefit the most from "New Work" practices?** Firms benefit the most from \"New Work\" practices when: - **Fostering innovation:** These practices promote creativity and adaptability, essential for dynamic environments. - **Attracting talent:** Modern employees value flexibility, autonomy, and purpose-driven work. - **Enhancing productivity:** Decentralized, flexible work environments can boost efficiency and job satisfaction. - **Adapting to digital transformation:** \"New Work\" practices support remote work, digital tools, and agile methodologies. - **Managing complexity:** For firms operating in complex, rapidly changing markets, \"New Work\" practices provide the agility needed to respond to challenges effectively.