isom1380 module 1

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isom1380 module 1
2013-03-19 23:15:59
isom1380 midterm

isom1380 midterm
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  1. ex. of society shaping development of technology and innovation
    • tax credit for green cars
    • opening up of spectrum leads to wireless LAN

  2. creative destruction
    • replace old tech with new tech
    • good at extracting great ideas 
    • essential to capitalism
    • innovation is key to creative destruction
  3. source of innovation opportunities
    • invention leading to multiple innovation
    • The government provides subsidies that pass off the cost of innovation
    • Create new products to solve problems created by regulations
    • Social and demographic trends alter preference and create demands
  4. invention leading to multiple innovation
    laser tech--> CD, CD players, app in medical field
  5. invention may not immediately lead to innovation-reason and ex.
    • lack complementary tech
    • high cost
    • eg. xerography 1937, xeroxphotocopier 1949
  6. Create new products to solve problems created by regulations
    • opening up of new spectrum lead to wireless LAN
    • new baby pushers to meet safety requirements
  7. Social and demographic trends alter preference and create demands
    people spend more time online-->Facebook, MySpace
  8. positive impact of innovation
    • facebook, twitter
    • medicine
    • yahoo, google
  9. negative impact of innovation
    • multitasking fatigue
    • environmental disaster
    • security and privacy issues
  10. why is the relationship between effort and performance is typically S-shaped
    ¤Initially performance improvements per unit of effort are small

    ¤Once key drivers of performance are identified rapid improvement follows

    ¤Diminishing returns as physical limits reached
  11. managerial use of s-curves
    make R&D investment decisions
  12. limitations of S-curves
    ¤Technology trajectory of new technology hard to predict

    ¤Cost disadvantage

    ¤Complementary products need to be in place
  13. explain feature s of the s-curve in terms of risk, return, competition, leverage
    • high, high, none, research/collaboration
    • medium, high, growing players, speed of commercialization/network
    • low, low, price drive, price/reach/services
  14. radical innovation-features
    Fundamentally new way of solving a problem

    Small % of innovations

    Enormous impact

    High risk-high return developments

    jump from one s-curve to another s-curve, eg. in hard DD industry, change in use of materials from ferrite-oxide head to thin film head to magneto-resistive head
  15. incremental innovation-features
    Small improvement to existing technologies

    Large % of innovations

    Build on prior developments

    Usually done by established firms

    movement along the s-curve
  16. product innovation of light bulbs
    change in the design of the light bulb
  17. process innovation in light bulb
    Manufactured with specialized equipment, eg high capacity vacuum pumps, less step in the process
  18. explain Abernathy-utterback model in terms of innovation process and market entry, give examples
    • process
    • fluid-uncertainty, rapid rate of product change, radical; transitional-market accepts product innovation, dominant design emerges; specific-products highly defined, competition focus on quality/cost ratio, incremental

    • entry
    • fluid-favors small firms, high entry and low exit, operate in small scale cuz technical uncertainty; transitional-firms exit after dominant design emerge; specific-favours established firms
  19. conditions for abernathy-utterback model
    • hold best in assembled manufacturing where customers have homogeneous taste
    • less well on non-manufactured products/products based on non-assembled components, eg. integrated circuits
    • does not hold for service industries
  20. reverse product cycle model-features and ex. of banking and insurance
    incremental process-increase efficiency on delivery of existing services; radical process-tech applied to improve quality of service; radical product-tech help create new/transformed service

    computerized insurance policies and audit-reduce labour intensiveness; front office automation, eg. computerized management accouting; online banking
  21. why did gasoline car but not electric car emerge as dominant design?
    • small edge-portable power for car more feasible
    • development of complementary products
  22. relevance of innovation to us
    • kondratiev cycle-society is most prosperous upon the arrival of new technology(huge impact on society and business)
    • capitalist economics development arises from the destruction of existing industry; innovation is the key to creative destruction; cassette tape to CD to MP3