Block 1.

Basics of the Business Innovation Strategy

Unit 3

Innovation Management

Execution of the
Innovation Strategy
 Index
Key Ideas 3
3.1. Introduction and Objectives 3
3.2. Innovation Roadmap 3
3.3. The Ambidextrous Organization 9
3.4. Open Innovation and Innovation Ecosystems 10
3.5. Innovation Laboratories 19
3.6. Bibliographical References 22

In Depth 23

Test 25
 Key Ideas

3.1. Introduction and Objectives

In this unit, we will address the essential aspects of the impact of innovation
strategy in the organization, as well as the methodologies for its execution. We will
look at how companies can sort their innovation objectives and maximize their
returns over different time frames.

The objectives of the unit are threefold:

 To approach the phased execution of innovation strategy, introducing the

concept of innovation roadmap.
 To understand how organizations can combine various types of corporate
objectives linked to their innovation strategy over different levels and time
frames.
 To extend the concept of innovation strategy beyond the boundaries of the
company itself, introducing concepts such as “open innovation” and “innovation
ecosystems”.

3.2. Innovation Roadmap

At this point it is important to define two basic concepts: a roadmap is as the image
of the innovation strategy of the company, and roadmapping, that can be described
as the reason required to define the roadmap.

A roadmap is also a guide or reference map consisting in two axes:

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Unit 3. Key Ideas
 Vertical axis: includes the variables we are going to analyze (market, product or
service and technology).
 Horizontal axis: includes the temporality of the strategy: short, medium, and
long term.

Roadmapping, according to the T-plan methodology (technological development

plan), consists of four phases, the first three of which focus on the variables to be
analyzed set in our roadmap and which are represented in the roadmap on the
vertical axis, while the final phase includes the conclusions of the previous analysis
and designs the roadmap. The roadmapping approach was developed in the 1970s
at Motorola. Its use has now been extended to various innovation and business
strategy applications.

As part of the development of an

innovation strategy, an innovation roadmap
reflects a means of linking the technology
and resources of the company, with new
products and services to be developed.
Besides, it reflects the different paths we
can follow to steer our company towards
Did You Know…
"The roadmap methodology was
commonly used in all aspects of
industry, both to search for
opportunities (Technology Push)
and to satisfy market demand in an
innovative way (Market Pull)"
(Groeneveld, 1997).

the desired innovative position.

Roadmaps are usually represented graphically, although they are accompanied by

extensive supporting documentation of the analysis and conclusions reached. The
use of these techniques helps to develop a common vision of the innovation
strategy among all the people involved in its design.

Each variable to be assessed in the elaboration of the innovation strategy should be

included in the outline of the roadmap and should answer the following questions:

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Unit 3. Key Ideas
 Why do we want to innovate? We usually try to give an innovative solution that
creates value to some market problem or need. To achieve this, we must analyze
and take into consideration all the components of the value chain in which the
company operates.

 What to innovate in? We must decide what products or services to offer and
determine the degree of solution they should provide to the previously detected
needs.

 How do we do it? It is necessary to identify the technology that will be used for
the development of the new products or services, as well as the necessary
resources for it, leaving defined what we will produce ourselves and what we will
outsource.

Stages in the Elaboration of a Roadmap

Preliminary Stage

During this stage, the first steps are taken in the development of the roadmap.
Before the process starts, the involvement of decision-makers within the
organization is necessary.

For the process to be successful, there must be collaboration between and among
the different areas of the organization (marketing, manufacturing, R&D,
engineering, etc.). In this phase, we define what we want to achieve, the planning
period and the level of detail we want the roadmap to provide.

It is also important to decide in which product or service to innovate, and to create

working groups.

This is the longest and most complicated phase due to the amount of information
that needs to be collected and analyzed.

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Unit 3. Key Ideas
Tactical Stage

This stage begins with the results obtained in the previous phase. It is here that the
management of the company must evaluate its current situation both internally and
externally, trying to answer questions such as the following:

 What is the position of our company on the market with respect to our
competitors?
 What are our capabilities, strengths, weaknesses and opportunities?
 What are the market trends, and those of competitors and consumers?
 What kind of organization do we want in the future?
 What should we change in the organization in terms of processes, resources,
etc.?

The answers to these questions will constitute the "What to innovate in" section in
the roadmap.

Strategic Stage

In this stage, we must define the actions that will allow us to achieve the objectives
defined in the previous phase or, in other words, the "How to achieve them" section
of the roadmap.

This phase consists not only in deciding what actions must be carried out, but it also
involves determining the resources needed for its implementation.

Roadmap Construction Stage

At this stage we are already able to present our innovation strategy graphically. The
most used form of representation is the classic structure, with the current situation,
the target situation and timing, specifying the evolution of the different parameters
to be considered.

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Unit 3. Key Ideas
Monitoring Stage, Control and Modifications of the Roadmap

The result of this process is complementary to the global strategic plan of the
company. An innovation roadmap does not start with a blank sheet of paper but is
based on available information and the current and future strategic situation of the
company.

Figure 1. Benefits, Keys and Considerations of Innovation Roadmap. Source: Own work.

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Unit 3. Key Ideas
 Figure 2. Example of the necessary stages for elaborating a roadmap. Source: Enspark Consulting, n.d.

The following figure shows an example of You Might Find This Useful
a roadmap for a technological innovation Itonic’s blog hosts a very solid post
project, where "M" is the different about innovation roadmapping: All
You Need To Know About
markets, "P" is the products or services
Roadmapping in Innovation.
developed, and "T" the technologies https://www.itonics-
used. Interconnecting these three aspects innovation.com/blog/all-you-need-
allows us to obtain new products and to-know-about-roadmapping-
innovation
objectives optimally.

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Unit 3. Key Ideas
 Figure 3. Generic technological roadmap. Source: Rinne, 2004.

3.3. The Ambidextrous Organization

An ambidextrous organization can be efficient in managing the current business

and, at the same time, is adaptable enough to deal with the disruptive changes that
will mark future competitiveness.

The concept of ambidextrous organization is deeply related to that of disruptive

innovation. In short, it establishes two physically segregated sub-organizations
within an organization, whose integration occurs only at the top management level.
Both sub-organizations operate in different businesses: one focuses on the current
business (exploitation, in proper terminology), whose axis of action is an
incremental vision of competition that ensures the survival of the parent
organization in the short term. The second sub-organization focuses on the growth
(exploration) business, imbued with the principles of disruptive innovation and
focused on permanent change and long-term vision. Each of these organizations has
completely distinct objectives, resources, leadership styles, time frames for action,
and strategies (Table 1).

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Unit 3. Key Ideas
Table 1. Differences between business types in ambidextrous organizations. Source: Compiled by the author
based on O’Reilly and Tushman, 2004.

3.4. Open Innovation and Innovation Ecosystems

The traditional innovation model is based on the desire to have everything under
control, trying to develop new inventions internally and making sure they are
protected through different legal means. It tries to incorporate the best employees
in its staff. It is usually represented visually through the innovation funnels that we
studied in previous units.

One of the ends of the funnel is wide, while the other end is narrower. The wide
end receives the ideas and technologies existing in the company and the narrow
end represents the exit point of the final product or service to be offered to the
customer. It constitutes a sequential system that involves the selection of the best
ideas, their development, and the validation of prototypes.

Under the traditional model, we can conclude that the more ideas are
introduced through the wide part of the funnel, the more and better products
or services we will obtain.

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Unit 3. Key Ideas
The main objective of the companies that follow this model is the development of
commercially successful products through ideas generated by expert personnel
belonging to the organization itself. The capacity of these companies to innovate is
limited by the capacity of these professionals.

Currently, innovation is generated in different ways and can be used by different

entities. The open innovation model seeks to innovate through successful ideas
regardless of where they come from. It does not matter if they have been
generated by a group of young people in Silicon Valley, a group of researchers from
a university anywhere in the world, a group of workers from the company itself, or
a group of online users.

The main challenge of this model is to be able to identify, access and incorporate
the knowledge necessary for the development of new products or services with
potential for success.

Identifying knowledge requires a previous analysis of the sector. One of the first
authors to talk about open innovation was Henry Chesbrough, executive director of
the Center for Open Innovation at the University of California, Berkeley. He pointed
out that traditional innovation models limit the development of intellectual capital
and therefore hinder the generation of opportunities.

Open innovation allows companies to use Did You Know…

external resources and to take advantage of According to a report by AT
best practices detected to add value to their Kearney, a consulting firm created
in 1926 that operates in forty
innovation assets, obtaining thus a higher countries and mainly focuses on
return on investment. According to top management consulting, no
company or organization is so large,
Chesbrough, it is a commodity (a product or or so innovative, that it can become
service whose value is very low due to its a leader in innovation without the
collaboration of different allies or
standardization. This term is normally
partners.
associated with raw materials) that can be
bought and sold.

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Unit 3. Key Ideas
The difference between the open innovation model and the traditional model (also
known as "closed innovation") lies in the fact that, in this new way of understanding
innovation in the company, there is no single exit to the funnel, but rather the
process is similar to the shape of a "gruyere cheese" with a large number of pores
that function as exit points before reaching the actual end of the funnel.

These outlets can take different forms: spin-off or licensing.

Go to the In Depth section in order to access examples of spin-offs through the

resource “44 firms highlighted in The Spinoff Prize 2020.”

Table 2. Comparison between the two innovation models. Source: Own work.

Companies that opt for an open innovation model obtain ideas through different
channels, understanding that each of them offers a different and valuable
perspective.

Changing the innovation model of a company requires changes not only in the
innovation process itself but also at a structural level, including the organizational
culture, the business model, the technologies used, or the way intellectual property
is managed. This change brings the company a competitive advantage, allowing it to
be faster than its competitors.

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Unit 3. Key Ideas
In his analysis, Chesbrough points out that companies that have opted for a
traditional innovation model have made great efforts to hire and incorporate into
their workforces the best researchers, the brightest students in the different
thematic fields, all with the aim of being able to generate the best innovations and
protect them to ensure the exploitation of the benefits resulting from their
commercialization.

In the current environment, companies are forced to redefine their business models
by moving towards models where there are several sources of value generation.
The key is the modification of organizational boundaries in such a way that
innovation flows freely between the external and internal environments of the
company.

Figure 4. Key Factors for the Development of an Open Innovation Model. Source: elaborated by the author.

Innovation Management
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Unit 3. Key Ideas
Why should we Implement Open Innovation in our Company?

Using this model makes it possible to Did You Know…

create business models that require
less R&D investment to develop new
products or services, or models that
increase the results from innovation
and at the same time allow access to
new markets.
According to the above-mentioned report by
the consulting firm AT Kearney, open
innovation allows organizations to reduce
costs in the innovation process by
accelerating innovation and the development
of new products and services, thus increasing
profits and market share and increasing the
creativity of the organization itself.

These benefits from the development of an open innovation model in the company
are only attainable if they are accompanied or linked to an appropriate
organizational culture.

The implementation of an open innovation system requires fighting against what is

called NIH syndrome, also known as the "Not Invented Here" syndrome, which
occurs when organizations prefer to reinvent a product rather than use existing
knowledge from outside the organization.

How to Implement an Open Innovation Model in Organizations?

 Leveraging the market. The market is one of the sources of innovation. The
existing relationship between customers and suppliers generates an intense flow
of opinions, specifications, materials, components, software, etc. For example,
open-source development where users develop their own software solutions.
Lead users are also drivers of innovation since they quickly demand
improvements and novelties in products and/or services. Innovation can also
come from analyzing competitors through benchmarking, trying to imitate what
the best of them are doing, or through suppliers who make available to
companies the latest innovations in machinery, management models, software,
etc. This is the case of the Eclipse Foundation, in which users, suppliers and

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Unit 3. Key Ideas
 competitors collaborate in the generation of a common software development
platform.

 Research. Universities, research institutes, technology centers, etc., are a way of

developing and acquiring technology. Normally this is carried out by large
entities with significant resources that collaborate with this type of institutions,
although there are more and more SMEs that develop projects in this way due to
the impossibility of having their own R&D departments.

 Adoption of standards and regulations. Despite having to be adopted as a norm,

they can be used as a source of innovation.

 Leveraging intellectual property. Appropriating and capturing the value created

through the development of patents and the assignment and use of licenses.

 Taking care of employees. An organization cannot be innovative if its employees

are not innovative.

 Introducing knowledge in a company.

• Earning-by-hiring: term that refers to "stealing" talent from competitors.
• Innovation scouts: professionals hired to observe the environment and
identify innovations or business opportunities. For example, BT Group has
introduced scouts in India, China, Japan and Silicon Valley to monitor new
technologies produced by universities and startups.

 Getting around. Participating in conferences or technology fairs that represent a

way of observing the environment. For example, the innovation ecosystem
developed by Tata, the Indian automobile giant, has generated an international
network made up of universities, venture capital companies and technology
startups, with which it holds various events and activities to observe their
progress in research. These events have given rise to joint research projects and
startups. On the other hand, the Springwise company offers a scouting service

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Unit 3. Key Ideas
 for the most innovative and potentially successful business ideas through a
network of more than 8,000 observers in some seventy countries.

 Collaborating. A very widespread cooperative trend is crowdsourcing or, in other

words, collaboration by different users on the same project.

Indicators of the Level of Open Innovation within an Organization

These indicators are tools for comparing the degree of openness of the innovation
processes in organizations.

 External innovation: this indicator reflects the degree to which the company
uses existing external knowledge. This includes, on the one hand, recourse to
external sources of knowledge for the development of new products and, on the
other hand, the option of acquiring external knowledge for the development of
internal activities.

 Search level: open innovation turns the company into a structure much more
absorbent of external ideas.

 Protection level: companies faced with the challenge of implementing an open

innovation strategy must establish an optimal level of protection for their
innovations in order to ensure the positive economic return that they may
generate.

Degree of collaboration

There is another series of indicators to measure the level of open innovation in

companies, these have been described in a publication of the Organization for
Economic Cooperation and Development (OECD) and consist of the following:

 Type of financing, either public or private.

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Unit 3. Key Ideas
 Funding from external organizations.
 Number of companies collaborating in innovation activities.
 Percentage of organizations collaborating with public and private research
centers.
 Number of organizations collaborating with other foreign organizations in
innovation activities.
 Number of patents developed in collaboration.
 Number of licenses purchased by the organizations.

Example of Open Innovation at Samsung

Open innovation comprises two main dimensions: the internalization of external

ideas and the externalization of internal ideas in the form of innovation projects.

By collaborating with startups, Samsung aims to benefit from the variety of

innovations that smaller companies have already come up with. These companies
often have products that can complement or be integrated to Samsung’s own
products, creating value for both parties.

On the other hand, the kind of companies that aim for new innovations requiring
high initial investments are typically better invested in or just acquired.

So, the main learning point from the Samsung case is that different kinds of
companies at different stages of their lifespan offer different kinds of possibilities.
You should identify these and figure out the methods that best match the different
kinds of opportunities.

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Unit 3. Key Ideas
Innovation Ecosystems

An innovation ecosystem is the evolving set of agents, activities, products/services,

and relationships that are important for the innovative performance of a business.
There are two types of relationships in an innovation ecosystem: collaborative and
competitive. Both are essential from the point of view of technological
development (e.g., Tesla and Panasonic's joint venture for the development of
electric batteries) and economic development of the innovation ecosystem in two
ways:

They trigger a reaction of interaction and recombination of innovation that spreads

to other agents of the ecosystem.

They diversify the relationships between products, services and agents to the point
that they define new standards that act as barriers to entry (e.g., Apple's closed
ecosystem).

One of the main players in the mobile telecommunications ecosystem was Nokia,
an active contributor to telecommunications standards and the largest cell phone
manufacturer in the world during the first decade of the 2000s. However, after the
introduction of the iPhone by Apple, Nokia quickly lost its edge, prompting CEO
Steve Elop to acknowledge: "Our competitors are not stealing market share with
their devices; they are taking our market share with their entire ecosystem".

Foremost, among these competitors was Apple. With its development of the iPod
music player, Apple had successfully positioned itself as a systems’ integrator and
managed to build an ecosystem of complementary technologies and players,
including content providers (record companies/music publishers). Applying the
same strategy in mobile telecommunications and smartphones, proved to be
extremely successful. By tightly controlling the smartphone hardware and operating
system with a proprietary IP strategy while opening to a plethora of complementary
innovators in applications and content, Apple managed to balance collaboration

Innovation Management
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Unit 3. Key Ideas
and both competition between itself and complementary players (e.g., in terms of
how to sell content), and competition between different complementary players
(e.g., between different gaming applications).

The innovation ecosystem of Apple

allowed for successful add-ons to reap
sufficient, and sometimes huge, benefits
from their innovations (e.g., King with
Candy Crash Saga), while at the same
time allowing for competition between
app providers. The combination of these
factors led to a dynamic innovation
ecosystem in which complementary
innovators were continuously providing
new value to customers.
Did You Know…
Competitive and collaborative
relationships between agents in an
innovation ecosystem are the subject of
study in the field of game theory. A
particularly interesting type of
innovation ecosystem in that sense is
that of startups in each business. You
can find more information on this
subject at
https://medium.com/futursticvc/the
-evolutionary-game-theory-of-a-
startup-ecosystem-and-why-it-
matters-for-founders-b402c0069a1c.

3.5. Innovation Laboratories

An innovation laboratory is a physical space and a set of rules for individuals,

private companies, and civil society organizations to participate in problem solving.

Innovation labs allow companies to incorporate innovation into the DNA of the
organization.

To develop it successfully, it is necessary to have a culture that fosters innovation,

that is, based on experimentation and continuous evaluation of failures, identifying
them as potential learning opportunities.

Failures usually lead to novel solutions. Thus, risks could be virtually removed if the
pertinent research and preparatory work is carried out before an implementation.

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Unit 3. Key Ideas
 An innovation lab has value because it represents a new formula for
generating solutions.

The rapid evolution of technology brings along new opportunities that lower the
barriers for the creation of new solutions among the members of the network that
develops them, also called co-creators.

Projects generated in an innovation laboratory require less investment and

are more sustainable.

These spaces respect creativity and empower young people by providing them with
mentoring and relationships with partners to help them develop their own ideas. In
other words, they provide a space for diverse partners and resources to work
together. Projects are acquired and developed on the basis of previous successes
and failures.

Figure 3. Partners in an Innovation Lab. Source: elaborated by the author.

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Unit 3. Key Ideas
Here are some examples:

Amazon Lab126: Amazon committed to innovation by setting up labs in

different locations: Cupertino, Boston, Seattle and Sunnyvale. As a result
of this initiative, devices such as the Kindle, Echo, Fire, etc. were born.

Capital One Labs: these laboratories are located in Washington, New

York and San Francisco. Since 2012, they have been applying a strategy
that places the customer at the center of innovation processes, based
on the use of new methodologies such as design thinking, in order to
promote new service ideas that may set them apart from their
competitors. In addition, this system allows them to capture innovative
talent and recruit anything that seems different or unusual.

In Depth

Knowledge management as a source of competitive advantage

The text The Knowledge Creating Company, by Nonaka and Takeuchi

explains how Japanese organizations have created their own innovation
model, the source of which is knowledge creation and management:

"In 1985, workers in the operations area of the Japanese Matsushita

Electric Company in Osaka were working on the design of a new
breadmaker. (…) After several unsuccessful attempts to get it to knead
bread, the workers involved in the project analyzed this problem in
detail, but could not come up with a solution. (…) One of the employees,
namely a software developer (Isuko Tanaka), proposed learning and
improving the model used by the best bread kneader. (…) The Osaka
International Hotel was known for making the best bread in all of Osaka.
Tanaka trained with the chief baker and analyzed his kneading
technique, concluding that the problem lay in the way the dough was
stretched. (…) After a period of trial and error, the employee managed
to determine the product specifications. The result was an original
"rolled dough" method and a product that in its first year set the sales
record for a new household appliance" (Nonaka & Takeuchi, 1995).

Related subjects: open innovation / innovation process

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Unit 3. Key Ideas
3.6. Bibliographical References

Desouza, K. (2017). Intrapreneurship: Managing Ideas Within Your Organization.

Rotman-Utp Publishing.

Enspark Consulting. (n.d.). Innovation Roadmap. Retrieved November 17, 2021,

from http://ensparkconsulting.com/innovation-roadmap/

Granstrand, O., Holgersson M. (2020). Innovation ecosystems: a conceptual review

and a new definition. Technovation.

Nonaka, I., Takeuchi, H. (1995). The Knowledge Creating Company: How Japanese
Companies Create the Dinamics of Innovation. Oxford University Press.

O’Reilly, C., Tushman, M. (2004, April). The Ambidextrous Organization. Harvard

Business Review.

Rinne, M. (2004). Technology Roadmaps: Infrastructure for Innovation.

Technological Forecasting and Social Change, 71(1-2), p. 67-80.

Tseng, C., & Tseng, C. C. (2019). Corporate entrepreneurship as a strategic approach

for internal innovation performance. Asia Pacific Journal of Innovation and
Entrepreneurship, 13(1), 108–120. https://doi.org/10.1108/apjie-08-2018-0047

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Unit 3. Key Ideas
 In Depth
Knowledge management

Razzaq, S., Shujahat, M., Hussain, S., Nawaz, F., Wang, M., Ali, M., & Tehseen, S. (2019).
Knowledge management, organizational commitment and knowledge-worker
performance: The neglected role of knowledge management in the public sector.
Business Process Management Journal, 25(5), 923-947.
http://dx.doi.org/10.1108%2FBPMJ-03-2018-0079

What is the secret to the success of Japanese automakers? The answer lies in their
ability to create knowledge and use it to develop successful products and
technologies.

Corporate performance and intrapreneurship

Augusto Felício, J., Rodrigues, R., Caldeirinha, V. R. & Caldeirinha, V. R. (2012,

November). The effect of intrapreneurship on corporate performance. Management
Decision, 50(10), 1717-1738. https://doi.org/10.1108/00251741211279567

Companies activate their internal talent to direct it to innovation activities and

projects. To do so, they establish internal idea generation mechanisms and a
process for their selection.

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Unit 3. In Depth
44 firms highlighted in The Spinoff Prize 2020

OUTLOOK. (2020, June 30). 44 firms highlighted in The Spinoff Prize 2020. Nature.
https://www.nature.com/articles/d41586-020-01904-6

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Unit 3. In Depth
 Test
1. The implementation of an open innovation model does not:
A. Require taking advantage of market opportunities.
B. Require taking care of employees.
C. Require a research approach.
D. Require having the best people on staff.

2. Indicate the correct option:

A. Closed innovation focuses on finding successful ideas regardless of where
they come from: whether from inside or outside the company.
B. Closed innovation is about developing innovations by working and
leveraging R&D within the company with the best professionals.
C. An innovation lab is an example of the implementation of an open
innovation model.
D. Options B and C are correct.

3. Are the following statements true or false?

Statement A: The creation of value in a company is exclusively related to a good
management of the financial and operations areas.
Statement B: Innovation laboratories are physical spaces in companies where
ideas can be generated and their potential for success tested.
A. Statement A is false, and B is true.
B. Both statements are false.
C. Both statements are true.
D. Statement A is true, and B is false.

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Unit 3. Test
4. Mark the correct option:
Statement A: Innovation is focused on the target market.
Statement B: Innovation is focused on the target market, but new markets can
be developed.
A. Statement A refers to a characteristic of open innovation and statement B
refers to a characteristic of closed innovation.
B. Statement A refers to a characteristic of open innovation and statement B
refers to a characteristic of process innovation.
C. Statement A refers to a characteristic of closed innovation and statement B
refers to a characteristic of open innovation.
D. Statement A refers to a characteristic of process innovation and statement
B refers to a characteristic of closed innovation.

5. The following can be potential partners in an innovation laboratory:

A. Local, regional, or state authorities.
B. Company employees.
C. Citizens.
D. All of the above are true.

6. Point out which of the following statements responds to metrics for measuring
open innovation in companies according to the OECD.
A. Type of financing, either public or private.
B. Funding from external organizations.
C. Number of companies collaborating in innovation activities.
D. All the previous statements are true.

7. The difference between an exploration and an exploitation business is:

A. The exploration business has a more short-term vision.
B. The exploitation business has a risk-based approach.
C. The exploitation business is based on incremental innovation and a growth
approach, while the exploration business is based on disruptive innovation
and a cost-benefit approach.

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Unit 3. Test
 D. The exploitation business is based on incremental innovation and a growth
approach, while the exploration business is based on disruptive innovation
and a cost-benefit approach.

8. Identify the correct option:

Statement A: We see the Balanced Scorecard as a graphically represented
roadmap indicating where we are and where we want to go in terms of
innovation in the company.
Statement B: We see the roadmap as a tool for analyzing the results of
implementing a strategy in which innovation is included.
A. Both statements are true.
B. Statement A is true, and Statement B is false.
C. Both statements are false.
D. Statement A is false, and Statement B is true.

9. An innovation ecosystem:
A. Is a concept exclusive to highly technological environments.
B. Is a concept synonymous with open innovation.
C. A and B are true.
D. It is the evolving set of agents, activities, products/services and
relationships that are important to the innovative performance of a business.

10. The ambidextrous organization manages its innovation strategy:

A. By differentiating between a short-term and a long-term vision, although
the entire organization works equally on both.
B. By creating a single team that works on incremental innovation, and
another dedicated to disruptive innovation. Both teams coexist and work side
by side to achieve the objectives.
C. By segregating the part of the organization working on disruptive
innovation (exploratory business) from the part working on incremental
innovation (exploitation business).

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Unit 3. Test
D. By entrusting the innovation aspect of the organization to a single team,
referred to as an ambidextrous R&D team.

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Unit 3. Test