Revision Session

• A number of technologies are embodied &

encapsulated in ________________

– Technology Portfolio
– Disembodied Technology
– Basic Technology
2. Hardware, Software, Brain ware and support
net are the four basic components of:
• Technology Transfer
• Technology absorption
• Technology Diffusion
• Technology Dependence
• Technology absorbed without changing the
parameters of acquired technology is called ­
________
• Technology absorption
• Technology adaptation
• Technology adoption
• Technology acquisition
Process innovation refers to:

• the development of a new service.

• the development of a new product.
• the implementation of a new or improved production method.
• the development of new products or services.
• Innovation can help to provide a temporary
competitive advantage when:

– barriers to entry are high.

– barriers to imitation are low and intellectual
property rights are difficult to enforce.
– there are few other competitors.
– barriers to entry are low.
• To promote proactive approaches to the
management of technology and innovation
managers should do all except :
Designate clear technology leaders
Assess objectively where your firm is on technology
leaders.
Set realistic priorities
Focus their search and assessment processes only on the
largest units of the firm
• Dynamics of diffusion refers to
– The S-curve of diffusion.
– Adoption over time.
– A rapid growth phase.
– A slow growth phase.
• An exclusive right to sell any new and useful
process, machine, or product for a set number
of years is called a
• Trademark
• Copyright
• Patent
• Brand
• Resistance to change can be -
– Overt or implicit
– Immediate or deferred
– Individual or group
– All above
• The statement of an organization's aspirations
can be found in the organization's:
– Mission statement
– Strategic objectives
– Actions
– Vision statement
• The period in which technology can change
and in which firms can introduce entirely new
products is the
A) short run
B) very short run
C) long run
D) very long run
Technological progress is a three-step process of

A) creation, pricing, and marketing

B) invention, innovation, and diffusion

C) manufacturing, venturing, and promotion

D) start-ups, imitation, and creative destruction

• The first discovery of a product or process
through the use of imagination, ingenious
thinking, and experimentation and the first
proof that it will work is
• A) process innovation
• B) product innovation
• C) creative destruction
• D) invention
• An exclusive right to sell any new and useful
process, machine, or product for a set number
of years is called a
• A) trademark
• B) copyright
• C) patent
• D) brand
• The major difference between entrepreneurs and
other innovators is
• A) innovators work in teams, but entrepreneurs do
not
• B) innovators manage start-ups, but entrepreneurs
do not
• C) entrepreneurs bear personal financial risk, but
innovators do not
• D) entrepreneurs invent new products and
processes, but innovators do not
• Product innovation tends to increase the
profits of firms primarily by
• A) decreasing the firm's average costs
• B) increasing the firm's total revenue
C) increasing the success of R&D spending
• ne legal protection for taking the lead in
innovation is
• A) venture capital
• B) trademarks
• C) trade secrets
• D) mergers
• Bounded rationality is one of the constraints
in initiating the change, which is:
– Internal to an organization
– External to an organization
– Inferior to an organization
– Exterior to an organization
• Which statement would best describe the concept of creative
destruction as used by economist Joseph Schumpeter?
• A) Innovation would lead to monopoly power and thus destroy
the economy.
• B) The creation of new products and production methods would
destroy the market for existing products.
• C) Invention would create new products, but diffusion would
destroy many potentially good ideas.
• D) Firms are being creative with learning by doing, but this spirit
is destroyed by the inability of firms to finance R&D expenditures.
• The technology change in the manufacturing
process of a company’s products to make the
process more efficient is the result of a
competitor lowering its price. Therefore, it
was an ________________
– External force of change
– Internal force of change
– Marketplace force of change
– Economic force of change
• The resistance of employees in an
organization against flexibility, growth, and
diversification can be overcome by
developing_____________.
A. Entrepreneurship
B. Managerial domain
C. Intrapreneurship
D. Administrative domain
Which of the following is not a recommended approach to encourage
creativity? 
a. tolerating failures.
 b. offering recognition for good effort and performance.
 c. restricting on-the-job interaction in order encourage individual
excellence.
 d. encouraging experimentation among employees.
• The Concept “ Creativity’ is inclusive of Ability, P
rocess, Attitude 
• a. True     b. False 
• Brainstorming: A small group process designed to free participants from stereotypical thinking
by having them uncritically express ideas, no matter how seemingly bizarre, and in which
evaluation and judgement are deferred until the end of the process.
• creativity: The ability to create new and useful ideas.
• differentiation: The ability to provide superior value to a buyer or user in ways that are different
from competitors. These advantages may be in terms of the availability of the service or product,
its special features, its quality, or the after-sale service.
• excursion exercise: A technique designed to take participants' minds away from the problem at
hand in order for them to approach possible solutions from different and unexpected directions.
• fluency exercise: An exercise that is designed to open participants' minds to new ideas.
• innovation: The generation of a new idea, and its implementation into a new product, process,
or service.
• shake-up exercise: A technique designed to break down barriers among participants and to
develop a sense of cooperation and community among them.
• technology: The totality of the means people employ to accomplish desired tasks.
• technology forecasting: Predicting the direction and impact of a new technology.
• technology transfer: A transfer of knowledge from a concept or even a prototype to some more
tangible application. Also used to describe the situation in which the source of a concept or
innovation makes it available to another person, unit, or organization.
• value chain analysis: A system designed to analyze the sources of competitive advantage.
• What is the role of technology forecasting in
innovation?

• It helps in understanding the future application of

existing technology.
• It helps in understanding the development of new
technologies.
• It helps in understanding the market of a technology.
• All of the above
• What determines the speed and extent that
an Innovation is diffused? (select all that
apply)
– Observability
– Complexity
– Compatibility
– Complexity
– Trialability
• Which of the following statement is correct in
relation to ‘Creativity’?
– Creativity is not a process
– Creativity is not ability to create out of nothing but
the ability to generate new ideas by combining,
changing, or reapplying existing ideas.
– Creativity does not require passion and
commitment.
– All of above
 • The primary goal during the brainstorming
process is to  

a. come up with as many ideas as possible.

b. analyze each idea as it is presented. 

c. rate each idea in relation to one another. 

d. come up with a set number of ideas within a certain time.

• In the six hats technique, what does the red
hat stand for?  
a. Use a negative perspective. Which elements of the
solution won’t work?
b. Look at the situation emotionally. What do your feelings
tell you? 
c.  Use a positive perspective. Which elements of the
solution will work?
d.  Look at the situation objectively. What are the facts?
• What is the difference between sustaining and
disruptive innovation?

– One makes a product better in a way that customers in

unique market potentially value; other creates an entirely
new market

– One makes a product better in a way that customers in

mainstream market already value; other creates an entirely
new market through introduction of a new product that is
better initially
Disruptive technology
Disruptive technology or innovation is all about change, novelty,
difference. Disruptive innovation creates new products and new
markets, and demonstrates a new value for something consumers
didn’t know they needed, wanted or were missing.
Disruptive technology is not created within an existing framework, but
rather identifies new opportunities and changes the conversation
around tech and innovation. Disruption allows smaller organizations
without huge resources to compete with and challenge bigger, more
established companies. Disruptive technology is all about identifying
areas that haven’t been properly explored previously, or niches that
aren’t covered.
A great example of disruptive innovation is Apple in the early 2000s.
Apple combined excellent and ground-breaking new technology in the
form of the iPod, with innovation in the form of iTunes massively
simplifying the ability to download digital music. This changed the way
people interacted with digital and portable music and, obviously,
helped make Apple one of the great tech companies of the 21st
century.
Sustaining technology and innovation is about development and improvement,
working within established markets and with pre-existing products and ideas, but
enhancing, improving performance and making things better.
Sustaining technology is essentially companies improving their products, and
competing with other organizations providing similar services, in a race about who
has the best tech. Some sustaining innovation can be slow, year-on-year
improvement, whilst some can be huge, giant leaps forward. Sustaining innovation
all takes place within pre-existing markets that customers, consumers and users
have demonstrated they value already.
A great example of sustaining innovation is the current smartphone market. Every
year big companies bring out new, improved products, and identify extra features,
new ways of doing things and incremental (or huge) improvements in
performance that give their product the edge.
So sustaining technology largely comes about as a result of listening to the needs of your
current audience, whereas disruptive technology is all about shooting for a new audience, or
persuading existing users that they want something different.
Both are incredibly important for business, and both can have huge benefits.
In general, bigger, more established companies tend to be more successful when it comes to
sustaining innovation. They have the resources, the time, and the existing audience to be able
to rely on more incremental change, and to be more risk-averse.
Smaller, more agile companies, and start-ups however tend to have the advantage when
dealing with disruptive technology. They might struggle to compete with big names in
established markets, or when competing on a pre-existing playing field, but can successfully
challenge them in a new marketplace.
Disruptive technology finds niches that might initially be too small to be of interest to larger
companies, or too risky to justify investment. This gives start-ups the edge in the first instance.
Making a choice between the two is not simple, as there are huge upsides to both approaches,
and negatives to neglecting either. Sustaining innovation is a more long-term, incremental
approach, whereas disruptive technology (although it can take time) can make a huge splash.
Achieving revolutionary innovation within a company, and developing long-term growth, will
likely mean combining both approaches, and paying attention to the opportunities available
both in sustaining innovation and disruptive technology.