Chapter 4 Strategic Innovation

The Gartner Hype Cycle helps leaders to assess the effects of emerging disruptive technologies. The cycle suggests that the Peak of Inflated Expectations is followed by…

• the Slope of Enlightenment

• the Trough of Disillusionment

• a.      the Plateau of Productivity

Today's markets are changing rapidly and often radically. The present is characterized by the VUCA model – Volatility, Uncertainty, Complexity and…

• Ambivalence

• Ambiversion

• Ambiguity

There are four generic competitive processes that can induce the decline of an incumbent firm. Among those four “destructive” competitive forces is Commoditization. Commoditization emerges from…

• ...new players at the periphery, de novo entrants or prior complementors.

• ...complementors in the extant innovation ecosystem who gain power and control.

• ...from established adversaries, or new adversaries that adopt the standard technology.

There are different patterns of strategic innovation and its impact on incumbent firms. Airbnb is a good example for which strategic and digital innovation?

• New ways of value creation, including new resources, skills and partners.

• New bundles of dmensions of customer benefit.

• New revenue structures and loci of differentiation.

The benefits of strategic innovation can…

• ... solely be observed within complex supply chains.

• ... be advantageous also for basic commodities.

• ... be considered an effective tool limited to the strategy departments of publicly traded companies.

The theory of “pipeline” businesses…

• ... is a result of research in digital platform ecosystems.

• ... is dependent on network effects.

• ... is increasingly doubted in light of multi-sided markets.

Which of the followings statements is NOT true? An ecosystem in business…

• ... is characterized by a clearly defined, albeit changing, group of actors with different roles.

• ...originates from the idea of an ecosystem in nature.

• ...encompasses largely dependent economic players.

A company intending to strengthen its digital platform could make use of which of the following strategies?

• Cross-Selling

• Cross-Subsidizing

• Cross-Sensitization

Which of the following represents the highest degree of openness?

• Hierarchical supply chain

• Business ecosystems

• Vertically integrated model

Which of the following statements is not true about digital economy?

• It functions according to the generic logic of engagement, positive spillovers and fair governance.

• The emphasis of scale economies is on the supply side.

• It allows permissionless entry and is open around key control points.