CSM Innovation & Business Development Flashcards

What is the primary goal of disruptive innovation?

Answer: Creating simpler, more affordable solutions that displace established competitors

Disruptive innovation introduces simpler, affordable solutions that initially target overlooked segments before eventually displacing incumbent competitors.

Which framework helps organizations evaluate whether to build, buy, or partner when pursuing new business opportunities?

Answer: Make-or-Buy-or-Ally framework

The Make-or-Buy-or-Ally framework guides strategic decisions about whether to develop capabilities internally, acquire them, or form partnerships.

What does 'blue ocean strategy' describe?

Answer: Creating uncontested market space by making competition irrelevant

Blue ocean strategy focuses on creating new market demand in uncontested space rather than fighting over existing demand in competitive 'red ocean' markets.

In business development, a 'value proposition' is best described as:

Answer: A clear statement of how a product solves customer problems and delivers benefits

A value proposition articulates the unique benefits a product or service delivers to customers and why they should choose it over alternatives.

What is the primary purpose of a 'stage-gate process' in new product development?

Answer: To provide structured checkpoints where projects are evaluated before advancing

A stage-gate process divides product development into stages separated by gates where management evaluates progress and decides whether to continue, redirect, or kill the project.

Which metric best indicates the health of an organization's innovation pipeline?

Answer: Number of patent filings and new product revenue as a percentage of total revenue

Patents filed and new product revenue as a share of total revenue together indicate both the generation of novel ideas and the commercial success of innovation efforts.