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Foundations of Innovation
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Foundations of Innovation
Foundations of Innovation
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1
Question
What is the core definition of innovation in business contexts?
Answer
The successful implementation of creative ideas that generate value through new or improved products, processes, or services.
2
Question
Provide an example of innovation highlighting its value creation aspect.
Answer
Tesla's electric vehicles exemplify innovation by combining battery tech with software updates to disrupt traditional automakers.
3
Question
What is creative destruction according to Schumpeter?
Answer
The process by which innovation displaces old technologies, firms, and economic structures, driving capitalism forward.
4
Question
How does creative destruction apply to Kodak's failure?
Answer
Digital photography destroyed Kodak's film business despite their invention of the digital camera.
5
Question
Who is Joseph Schumpeter and what is his key contribution to innovation theory?
Answer
Austrian economist who emphasized entrepreneurship and creative destruction as engines of economic growth.
6
Question
What is the linear model of innovation?
Answer
A sequential process: basic research → applied research → development → production → diffusion (technology push).
7
Question
What characterizes the dominant design phase in innovation models?
Answer
After initial variation, a single design becomes the industry standard, shifting focus to efficiency.
8
Question
Describe the coupling model of innovation.
Answer
Innovation involves tightly or loosely coupled components; shifts from fluid to specific coupling over time.
9
Question
What is the interactive or chain-linked model of innovation?
Answer
Non-linear model with feedback loops between research, development, and market; knowledge flows both ways (Kline-Rosenberg).
10
Question
Define architectural innovation in innovation models.
Answer
Changes how components interact (architecture) while core components remain the same.
11
Question
What is innovation diffusion?
Answer
The process by which innovations spread through social systems over time.
12
Question
Describe the bell curve in innovation diffusion adoption rates.
Answer
Adoption rate follows a normal distribution: innovators (2.5%), early adopters (13.5%), early majority (34%), late majority (34%), laggards (16%).
13
Question
What is the S-curve in cumulative innovation diffusion?
Answer
Cumulative adoption grows slowly at first, accelerates, then tapers off, forming an S-shape.
14
Question
How does the S-curve differ from the bell curve in innovation diffusion?
Answer
Bell curve shows adoption rate (incremental new users); S-curve shows cumulative adoption over time.
15
Question
What are the types of adopters in Rogers' diffusion model?
Answer
Innovators (venturesome), early adopters (respected), early majority (deliberate), late majority (skeptical), laggards (traditional).
16
Question
What is 'Crossing the Chasm' in innovation adoption?
Answer
Geoffrey Moore's concept: the gap between early adopters (visionaries) and early majority (pragmatists) requiring a distinct strategy.
17
Question
What is the S-curve in technology innovation?
Answer
Performance improves slowly, then rapidly, then plateaus as a function of cumulative R&D effort.
18
Question
What happened in the Kodak case study?
Answer
Kodak invented the digital camera in 1975 but clung to film profits, leading to bankruptcy in 2012.
19
Question
What type of innovation was Kodak's digital camera failure?
Answer
Disruptive innovation that Kodak created but failed to pursue due to focus on sustaining film technology.
20
Question
What is the key lesson from Kodak and digital photography?
Answer
Incumbents must cannibalize their core business to embrace disruptive innovations.
21
Question
What is Moore’s Law?
Answer
Observation by Gordon Moore: number of transistors on a chip doubles every two years, driving exponential computing power growth.
22
Question
What are Porter’s five forces?
Answer
Framework analyzing industry attractiveness: rivalry, new entrants, substitutes, buyer power, supplier power.
23
Question
How does Blue Ocean Strategy differ from Porter’s five forces?
Answer
Porter focuses on competing in red oceans (existing markets); Blue Ocean creates uncontested new market space.
24
Question
What is the 6W method for innovation?
Answer
Framework asking Who, What, When, Where, Why, and hoW to structure innovation projects.
25
Question
What are dynamic capabilities?
Answer
Firm's ability to integrate, build, and reconfigure internal/external competences to address rapidly changing environments (Teece).
26
Question
What is Blue Ocean Strategy?
Answer
Creating new demand in uncontested market space rather than fighting over existing demand (Kim & Mauborgne).
27
Question
What is strategic intent?
Answer
Ambitious, stretching goals that focus organization on winning in the long term (Hamel & Prahalad).
28
Question
What is the Balanced Scorecard?
Answer
Strategic performance management tool measuring financial, customer, internal processes, and learning/growth perspectives (Kaplan-Norton).
29
Question
What are utility curves in innovation?
Answer
Graphical representation of customer preference value for product attributes; higher utility preferred.
30
Question
What is conjoint analysis?
Answer
Market research technique measuring customer value for product features by analyzing trade-offs in hypothetical scenarios.