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OIM 210 Exam Two : Questions With Detailed Solutions
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OIM 210 Exam Two : Questions With Detailed Solutions
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OIM 210 Exam Two : Questions With Detailed SolutionsWhat are the two characteristics of disruptive innovations (sometimes
referred to as disruptive technologies)? Right Ans - First, they come to
market with a set of performance attributes that existing customers don't
value. Second, over time the performance attributes improve to the point
where they invade established markets
The acronym VoIP is considered by many to be a disruptive innovation. It
refers to: Right Ans - the technology used in internet telephony
Disruptive innovations are often so damaging because the new technology has
better margins than the incumbent technology being displaced. True or false?
Right Ans - False-The most disruptive technologies also often have worse
margins than the initially dominant incumbent offerings. Since these markets
don't look attractive, big firms don't dedicate resources to developing the
potential technology or nurturing the needs of a new customer base.
Firms that listen to their customers are more likely to be able to counteract
the onslaught of potentially disruptive technologies. T or F? Right Ans -
False-the majority of a firm's current customers don't want the initially poor-
performing new technology.
While no crystal ball exists to identify disruptive technologies with perfect
accuracy, firms that have external conversations with innovative external
groups, as well as improving internal communication with technologies can
help. T or F? Right Ans - True
If you want to have conversations with colleagues, clients, and potential
employers, you'll need to speak their language and understand their
vocabulary. One term you may hear is ____________________. The phrase is often
used to refer to disruptive technology theory and it is also the name of Prof.
Clayton Christensen's book (Christensen is considered the father of Disruptive
Innovation theory). Right Ans - Innovator's Dilemma
The name sometimes is ascribed to disruptive innovation theory is: Right
Ans - The Innovator's Dilemma
,Experts advise firms hedge against disruptive technology by developing a
portfolio of technology options, giving the firm the right (but not the
obligation) to continue and increase funding as a technology shows promise. T
or F? Right Ans - True-Firms identifying potentially disruptive technologies
are wise to create a portfolio of technology options-start-ups or in-house
efforts otherwise isolated from the firm's core business and management
distraction. Options give the firm the right (but not the obligation) to continue
and increase funding as a technology shows promise. It's also important that
these experimental efforts are nurtured in a way that is sufficiently separate
from the parent to offer staff working on the innovation a high degree of
autonomy and protection.
What is the 'creosote bush effect'? Right Ans - Managers can act like the
rival-killing creosote bush, pulling high-quality engineers off emerging
projects if a firm's top offerings need staff or other resources to grow
Intuit has shifted from the disruption caused by the emergence of cloud
computing by shifting to markets for packaged software. T or F? Right Ans -
False-Intuit has been a leader in several packaged software categories,
including personal finance (Quicken), small business (QuickBooks), and tax
prep (TurboTax) software, but has effectively shifted to cloud-based offerings,
some of which are initially free. So-called connected services that either run in
the cloud or enhance existing offerings make up over 65 percent of the firm's
revenues.
ARM chips are generally not as powerful as desktop chips, however Moore's
law is making these chips powerful enough for server tasks, bringing with
them the added benefit of requiring less energy to operate. T or F? Right
Ans - True-ARM chips (once computational weaklings) are now fast enough to
invade the established market for server chips. Chips with ARM logic are far
more power efficient than the chips Intel sells for PCs, laptops, and servers.
The Intel chips were never designed for power efficiency; they evolved from
markets where computers were always plugged in.
This firm's processor designs power the majority of smart phones on the
planet. Right Ans - ARM
ARM has been so successful because its chip designs can run any software
originally designed to run on Intel chips. T or F? Right Ans - False-Unlike
, Intel-compatible rival AMD, ARM chips can't run Intel software, so all of a
firm's old code would need to be rewritten to work on any ARM-powered
servers, laptops, or desktops.
Facebook requires employees to leave their teams for new assignments at
least once every eighteen months. T or F? Right Ans - True-It's common for
many firms to regularly rotate staff (both management and engineering) to
improve idea sharing and innovation. Facebook, for example, requires
employees to leave their teams for new assignments at least once every
eighteen months.
The public ledger that records transactions and ownership of bitcoins is
known as the: Right Ans - Blockchain
Despite the hype, no online retailers accept bitcoin due largely to security
concerns. T or F? Right Ans - False-Overstock.com was one of the first large
online retailers to accept bitcoin. Its profit margins. While not mentioned in
readings, Dell and Zynga are among other well-known firms that were early
adopters of bitcoin.
Bitcoin has the potential for lowering payment transaction fees in a way that
would be attractive to retailers. T or F? Right Ans - True-Much of bitcoin's
appeal comes from the fact that bitcoins are transferred from person to
person like cash, rather than using an intermediary like banks or credit card
companies. Getting rid of card companies cuts out transaction fees, which can
top 3 percent.
Bitcoin has the potential to greatly reduce the costs associated with cross-
border financial transfers. T or F? Right Ans - True-Bitcoin could be a boon
for cross-border remittance and in expanding e-commerce in emerging
markets. A bitcoin transfer would be immediate and could theoretically
eliminate all transaction fees.
The exchange rate for bitcoin has proven to be more stable over in recent
years than many 'real world' currencies, including the U.S. Dollar, the Euro,
and the Japanese Yen. T or F? Right Ans - False-Over a recent twelve month
period, the value of a single bitcoin went from less than $100 to over $1,000
before losing half its value again and then gaining some. Volatility makes
bitcoin less useful as a dollar-like currency, limiting its appeal to speculators
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