CPI Innovation Strategy & Implementation 2

Question 1

Which portfolio management approach balances incremental improvements with breakthrough innovations in an organization's innovation strategy?

Accepted Answer

The 70-20-10 innovation portfolio model

Answer

The 70-20-10 model allocates roughly 70% to core improvements, 20% to adjacent opportunities, and 10% to transformational bets, balancing risk and growth.

Question 2

What is the primary purpose of an innovation thesis in a corporate innovation strategy?

Accepted Answer

To articulate where and why the organization will place innovation bets

Answer

An innovation thesis defines the strategic logic, opportunity spaces, and criteria guiding which innovation bets an organization will pursue.

Question 3

When executing an open innovation strategy, what is the key risk organizations must manage?

Accepted Answer

Protecting core IP while leveraging external knowledge

Answer

Open innovation exposes proprietary knowledge to external partners, so robust IP agreements and clear boundary-setting are essential risk controls.

Question 4

In the context of innovation implementation, what does 'minimum viable product' (MVP) primarily help organizations achieve?

Accepted Answer

Early market learning with minimal resource investment

Answer

An MVP is designed to test core assumptions with real users at low cost before committing to full-scale development.

Question 5

Which innovation governance structure gives business units the most autonomy while maintaining strategic alignment?

Accepted Answer

Federated model with a central coordinating function

Answer

A federated model distributes innovation activity across units while a central function ensures strategic coherence, shared resources, and knowledge transfer.

(CPI) Certified Professional Innovator Practice Test

(CPI) Certified Professional Innovator Practice Test

CPI Innovation Strategy & Implementation 2