A comprehensive set of multiple-choice questions and answers covering key concepts in business innovation and product development. topics include the innovation funnel, entrepreneurial processes, ideo's product development methodology, opportunity identification, and the importance of customer focus. the questions test understanding of various models and frameworks used in new product development and business innovation strategies. The detailed answers offer valuable insights for students studying business administration.
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BA 458 EXAM QUESTIONS WITH ACCURATE
ANSWERS
Which pair of processes is considered most similar? 1: Business Model Development and Total Quality Management 2: The New Product Development Process and Conjoint Analysis 3: The innovation Funnel and the Entrepreneurial Process 4: Job-To-Be-Done (JBTD) and the Product-Innovation-Charter (PIC) - ANSWER 3: The Innovation Funnel and the Entrepreneurial Process which of the following phases will have the most potential products? 1: opportunity identification 2: opportunity selection 3: Launch 4: development - ANSWER 1: opportunity identification A verbal and/or prototype expression that tells what is going to be changed and how the customer stands to gain or lose is best described as a ___________. - ANSWER product concept The objective of ________ is for a company to access the global R&D community, even beyond the confines of its own industry, in order to accelerate its speed of research and innovation. - ANSWER open innovation The IDEO method of product development begins with - ANSWER understanding the market, client, technology, and constraints. Which of the following is NOT part of the IDEO approach to investigating how clients and products might interact in real settings? 1: pay particular attention to the things that bug you or customers in a situation. 2: embrace the crazy user. 3: focus on quantitative data collection in order to treat customers like statistics. 4: see products in motion by thinking verbs and not nouns. - ANSWER 3: focus on quantitative data collection in order to treat customers like statistics.
An entrepreneur is someone who _______ a business venture and assumes the ________ for it. - ANSWER organizes; risk According to IDEO, which of the following is not needed for strong team performance? 1: something to shoot for and be proud of 2: individuals given the chance to pick what groups they work for. 3: tangible goals 4: higher causes - ANSWER 4: higher causes A goal of product development is to design and deliver __________ for well-defined _______ markets. - ANSWER value; target Which of these is NOT one of the five steps in opportunity identification? 1: determine high priority outcomes 2: identify and clearly state the JTBD 3: list the JTBD's outcome expectations 4: create and assess a solution matrix - ANSWER 4: create and asssess a solution matrix One possibility for choosing high priority outcomes is to use a Likert-type approach and ask customers about the importance of the JTBD and ________________. - ANSWER satisfaction with current solutions Sir Tim Berners Lee is an example of a lead user whose quest for a solution led to the creation of the ______________. - ANSWER World wide web A Market Opportunity is a set of potential _________ with a common set of __________ that can be addressed by a technology or _________ in a profitable manner. - ANSWER customers; needs ;product IDEO believes that hot groups are promoted by - ANSWER putting group goals above individual interests _____________ is a technique which uses maps of the market to determine how various products are perceived by how they are positioned on the market map. - ANSWER Gap analysis Customer attribute ratings are used to produce ________ gap maps - ANSWER AR perceptual In AR perceptual gap mapping, individual respondents can be grouped together into benefit segments based on their preferences through the use of ______________. - ANSWER cluster analysis
According to the 2013 Global Entrepreneurship Monitor study, ________________ %of Americans are actively engaged in starting a business or are the owner/manager of a business that is less than three years old. - ANSWER 12.7%
entrepreneurship is the art of turning an idea into________________ - ANSWER a business
what are the general types of entrepreneurship? (3 kinds) - ANSWER 1: classical entre.
2: corporate entre.
3: social entre.
the entrepreneurial process involves all the elements of the business process. t/f - ANSWER true
a new product includes - ANSWER repositionings cost reductions improvements and revisions to existing products
most new product activity is devoted to - ANSWER improving existing products
the new product development process (NPD) steps are - ANSWER idea generation
market potential concept testing design and development beta testing launch
_______________________is a formal process that divides the product development process into specific stages. - ANSWER stagegate
why do most product launches fail? - ANSWER lack of preparation
IDEO method is - ANSWER understand observe visualize evaluate and refine implement
the four drivers of NPD performance is - ANSWER customer focused front end loaded clear strategy portfolio management
_________________________________________ is a phased process that takes the new product idea through concept development, evaluation, development, launch, and post-launch - ANSWER new product process
__________________________________________ is A strategy for new products that ensures that the team develops products in line with company objectives and market opportunities. - ANSWER product innovation charter
Session 1: What is Business Innovation - ANSWER Business innovation is the development and implementation of creative initiatives in any dimension(s) of the business system to create new value. New technology alone is not sufficient. New technology and new products need an innovative business model
Session 1: BA 458 Definition of Innovation - ANSWER Innovation is the introduction of something new that reduces the pain, solves a problem, creates value. Value is determined by adoption. (Adoption = "has impact")
Session 1: Misconceptions about Innovation - ANSWER Misconceptions: 1) Only a select group of people should drive a company's innovation activities 2) Innovation is all about "big bangs"--It's ok to play "small ball"
Session 1: innovation continuum - ANSWER runs from incremental process improvements to radically new business designs. (close Adjacencies->midrange->distant)
Session 1: Newness of Products - ANSWER Low Newness to Company & Low New to World: Product Line Ext. Low Newness to Company & High New to World: Product Improvement High Newness to Company & Low New to World: "Me Too" Products High Newness to Company & High New to World: Breakthorough
Session 1: Innovation Funnel Graphic - ANSWER The different product innovation processes relate to different stages of the "innovation funnel" - the progression from a broad set of innovation ideas to actual implementation and commercialization.
Session 1: StageGate - ANSWER (insert Graphics) Stage-Gate® is a formal process that divides the product development process into specific stages. After each stage, specifically agreed results (e.g. a prototype, a market survey, or a testing plan) are delivered. Gates: Go/No-go decisions
Gates are meetings where a designated management group (the gatekeepers) make a business decision about whether a project should continue or stop.
Stages: Stage-Gate® divides the process into specific stages. After each stage, specifically agreed results (e.g. a prototype, a market survey, or a testing plan) are delivered. All stages cut across the organization, i.e. they include development within product design, marketing and manufacturing. The first stages are the least expensive. Although the subsequent stages are increasingly costly, they provide an increasingly sounder basis on which to assess whether it makes sense to continue or stop the project.
Idea-> Concept->Business Case->Development->Market Testing->Commericalization (Associated screens and reviews)
Session 1: New Products - ANSWER Failure Rate depends on Industry (ie not crowded, concentrated, fragmented),Companies that maintain their commitment to new products are rewarded with revenue and profits! - But be careful of the rabbit hole.
Session 2: Stagegate Go/No Go - ANSWER Gates are meetings where a designated management group (the gatekeepers) decide whether a project should continue or stop. The project manager and his/her team present the results of the stage just completed. The gatekeepers assess the results on the basis of the criteria agreed which must clarify:
whether the work has been performed, the results agreed are present, and the quality of the work is up to par; whether the project is still commercially attractive;
Lack of good NPD processes Poor NPD execution Failure to understand customers
Failure to launch
Session 2: Why Most Product Launches Fail - ANSWER Biggest problem: lack of preparation Companies are so focused on designing and manufacturing new products that they postpone the hard work of getting ready to market them until too late in the game. Beware of the sales/market forecast "Hockey Stick".
Other Reasons: Product falls short of claims and gets bashed, Company can't support fast growth, New item exists in "product limbo", Product defines a new category and requires substantial consumer education — but doesn't get it, Product is revolutionary, but there's no market for it
Developing and delivering new products that are differentiated, solve major customer problems, and offer a compelling value proposition
Begins with a thorough understanding of the customers' unmet and unarticulated needs through direct customer interaction. The customer or user must be an integral part of the entire development process but beware of leakage
Session 2: Keys to NPD Success- Customer Focus Key Principles - ANSWER Must understand customer value Focus on their unspoken, unarticulated and often hidden needs
Go beyond wants, requests and specifications
Must be face to face - touching real customers The entire project team At multiple customer sites
Must have constant customer interaction, testing & validation of the product as its evolves from idea to concept to final product
Session 2: Keys to NPD Success #2 - ANSWER 2 - Front End Loaded Doing the right up-front homework What homework? And how much homework is enough? Get the market research right!!! Reduces time - doesn't add time! Sharpens product definition Gets the product specs right Confirms product design early in the process Minimizes last minute changes and panic
Stages 0-2 in Stagegate
Session 2: Recognizing Opportunities - ANSWER Three primary ways to identify an opportunity Observing trends Economic, Social, Technological, Political, Regulatory Solving a problem Finding gaps in the marketplace
available previously. New products or services that enter at the bottom of the market and overtime move up and displace established market leaders.
Game / World Changing Innovation - New-to-the world products beyond the existing base of products or services.
Session 3: Brainstorming & ways to kill a brainstorm - ANSWER Trial and error, brainstorming new ideas
Some ideas fail, but the more options you have the more likely you are to succeed
The Boss Gets To Speak First: sets the bar and limits the brainstorm Everybody Gets A Turn: holds people back, wrecks "vibe" Experts Only Please: invite everyone, different perspectives Do It Off Site: distractions...you want the buzz in the office not at the beach No Silly Stuff: no such thing as a dumb idea Write Down Everything: note-taking can hold you back
Session 3: Adoption of Innovation - ANSWER An innovation is any good, service, or idea that someone perceives as new, no matter how long its history. The innovation diffusion process is "the spread of a new idea from its source of invention or creation to its ultimate users or adopters." In other words, it is the process by which consumers adopt innovations. Adoption is an individual's decision to become a regular user of a product.
Steps include: Awareness Interest Evaluation
Trial Adoption
Session 3: Diffusion of Innovation - ANSWER Innovators (2.5), Early Adopters(13.5), CHASM Early Majority(34), Late Majority (34), Laggards (16)
Session 3: Diffusion of Innovation--Types of People - ANSWER Innovators: first 2.5% (Visionary, imaginative, idealistic, often technology enthusiasts, Venturesome and enjoy playing with new products and mastering their intricacies, Willing and able to take risks)
Early adopters: next 13.5% (Opinion leaders who carefully search for new technologies, Love gaining an advantage over their peers - social prestige is a big driver (no pun intended), Economically successful, confident, socially respected, informed, like talking
a LOT, Even more influential as opinion leaders)
Early majority: next 34% (More risk averse, Want proven benefits, Followers, cost sensitive, risk averse, hate complexity, love to hear "user friendly", Waiting to hear about favorable experiences)
Late majority next 34% (Conservative pragmatists who hate risk and are uncomfortable with new ideas, Rely on consistent messages received via word of mouth, Often older and more conservative, Have a fear of not fitting in)
Laggards or non-adopters last 16% (Most risk averse - skeptical of new products, Bound to tradition and resist the innovation until the status quo is no longer defensible, Often cannot afford risk or don't understand it (lower income/education status))
Session 3: New Products from the Customer Point of View: - ANSWER When planning new products, companies often start by segmenting their markets and positioning their products accordingly.
Segmentation usually involves dividing the market into product categories
Session 3: Jobs to be Done, Opportunity Justification, Solution Resumes - ANSWER Defining target outcomes is an important element of NPD opportunity identification.
Steps: Identify and clearly state the Job To Be Done List the JTBD's outcome expectations Create outcome statements Determine high priority outcomes Create a solution résumé for your NPD idea
Job Statements usually take this form:
Understanding your customer's JTBD is important but not enough. NPD starts with understanding the problem to be solved and your product's JTBD(s). But you also need to define the outcomes that will determine success. Innovation is measured by impact.
Outcome expectations give a clear view of what the customer does and doesn't want and what the provider does and doesn't want.
Session 4: Universal Design - ANSWER "the concept of designing all products and the built environment to be aesthetic and usable to the greatest extent possible by everyone, regardless of their age, ability, or status in life."
Equitable Use (The design is useful to people with varied abilities.) Flexibility in Use (The design accommodates a wide variety of preferences) Simple and Intuitive to use
Perceptible Information (The design communicates the required information to the user) Tolerance for Error (The design minimizes adverse consequences of inappropriate use.) Low Physical Effort (The design can be used efficiently by anyone with minimal fatigue.) Size and Space for Approach and Use (The product is easy to reach, manipulate, and use)
Session 4: Customer Insights and Understanding - ANSWER A deep understanding of customer needs and frustrations that can become the basis for a business opportunity
Comes from working harder, looking further, and using better tools and techniques to arrive at a special understanding
Beyond the obvious interpretations of facts and observations
Seeing what everyone has seen, but thinking what nobody has thought!
Session 4: Min. Valuable Product - ANSWER A strategy used for fast market testing of a product or product feature Quickly puts a product or product feature in front of customers to test consumer response and then adapt it to what customers really want Targeted at avoiding building products that customers do not want Seeks to maximize the information learned about the customer per dollar spent
An MVP has three key characteristics: It has enough value that people are willing to use it or try it or buy it It demonstrates enough future benefit to retain early adopters It provides a feedback loop to guide future development
Typically prepared by senior management to provide guidance to strategic business units about the role of innovation in the company
Session 4: Purposes and Elements of PIC - ANSWER Purpose: Focus and integrate team effort Enable delegation and continuity Establish the size and range of the "sandbox"
Elements: Background: "Why did we develop this strategy?" Focus or Area: technology and market drivers that fit and have good potential Goals and Objectives: profit, growth, market status
Session 5: Pains and Gains - ANSWER Customer Segment (Gains, Pains, Customer Jobs) <-> Value Proposition (Gain Creators, Pain Reducers, Product and Services)
Session 5: Value Proposition - ANSWER A value proposition is a promise of value to be delivered with a convincing argument about why you can deliver on that promise. Until you can firmly offer a solid reason for why customers should buy from or hire you over everyone else, you'll compete on price. As you develop a strategy for your business you must create the value proposition of "why us" and build all of your marketing messages, products, services, processes and follow-up communication around supporting that proposition.
Session 5: Valur Proposition typicaly include - ANSWER Customer context What customers & scenarios is your new product best designed for?
Promise
Why is this product important to your customers? What benefits do your customers receive from your new products? Are you saving customers' time or money? Are you making their lives easier, more productive, or more efficient?
Differentiation How is your product better than alternatives? What are the differentiating points? What is your product's competitive advantage? What are the unique, rare, and hard to imitate qualities that give your product/service an advantage over other products?
Support for claims Why should the customer believe your claims?
Cost What is the total cost of using your product?
Effort What do customers need to do to make your product useful?
Risk What could go wrong with your product?
Session 5: Ideas and Concepts - ANSWER Concepts: A concept is a more specific version of the product idea.
Concepts allow companies to determine what the product will look like, including special features, styles or dimensions. (mock-ups, prototypes, etc.)
Companies create different versions of concepts before narrowing their plan down to one specific product.
