CME Innovation & Entrepreneurship Flashcards

Clayton Christensen's theory of 'disruptive innovation' describes innovations that:

Answer: Initially serve niche or underserved markets before displacing incumbents

Disruptive innovations start by serving overlooked customer segments with simpler, cheaper solutions, eventually moving upmarket to displace established competitors.

Which business model canvas component describes the value a company delivers to its customers?

Answer: Value Proposition

The Value Proposition describes the bundle of products and services that create value for a specific customer segment, solving their problems or fulfilling needs.

In entrepreneurship, what does the 'lean startup' methodology primarily emphasize?

Answer: Rapid experimentation, validated learning, and iterative product releases

The lean startup methodology, developed by Eric Ries, emphasizes build-measure-learn cycles to validate business assumptions quickly with minimal resource waste.

What is a 'Minimum Viable Product' (MVP) in the context of innovation management?

Answer: A product with enough features to attract early adopters and validate key assumptions

An MVP is a product with just enough features to satisfy early customers and provide feedback for future development, minimizing wasted effort.

Which innovation type improves existing products or services within an established market without changing the fundamental business model?

Answer: Incremental Innovation

Incremental innovation involves making continuous, minor improvements to existing products, services, or processes without fundamentally changing the core business model.

In the context of corporate innovation, what is an 'intrapreneurship' program designed to do?

Answer: Encourage employees to develop entrepreneurial ideas within the organization

Intrapreneurship programs empower employees to act like entrepreneurs within a larger organization, fostering innovation without the full risk of starting a new venture.