Discussion Questions
September 6, 2012
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management Engineering
POSTECH
Discussion Questions (1/4)
■ Chapter 1. Introduction
1. Why is innovation so important for firms to compete in many industries?
Factors making innovation important
– Globalization
– Needs for differentiation
– Shorter life cycle
Innovation enables firms to
– Introduce more product and service-variations, enabling better market segmentation and
penetration
– Improve existing products and services so that they provide better utility to customers
– Improve production processes so that products and services can be delivered faster and at
better prices
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Discussion Questions (2/4)
■ Chapter 1. Introduction
2. What are some of the advantages of technological innovation? Disadvantages?
Society
Advantages
Disadvantages
•
•
Increasing GDP
Increasing standard of life
•
•
•
Pollution
Environment destruction
Antibiotic-resistant strains
of bacteria and viruses
Moral dilemmas
•
Technology
•
•
Basis for the new
technologies
Increasing knowledge
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Market
•
•
Meeting customers’ needs
More diversified market
•
Environment where it is
hard for small companies
to survive
Discussion Questions (3/4)
■ Chapter 1. Introduction
3. Why do you think so many innovation projects fail to generate an economic return?
– Technical uncertainty
• Will the project result in a technically feasible product or service?
– Market uncertainty
• What features will customer prefer and what will they be willing to pay for them?
– Overestimating potential return
– Underestimating uncertainty
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Discussion Questions (4/4)
■ Chapter 1. Introduction
4. What factors do you think enable an organization to pioneer an innovation?
– Advanced information technologies (Technical support)
– Technology management strategies
– Innovative leader
– Organization’s culture open to new approaches
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