DBA Innovation, Entrepreneurship, and Digital Transformation 1 — Questions and Answers
Question 1: What is 'disruptive innovation' as defined by Clayton Christensen?
- Any innovation that improves an existing product
- An innovation that initially targets overlooked segments with simpler, cheaper solutions before eventually displacing established players (Correct answer)
- A radical technological breakthrough requiring massive R&D investment
- Government-mandated changes to industry practices
Correct answer: An innovation that initially targets overlooked segments with simpler, cheaper solutions before eventually displacing established players
Christensen's disruption theory describes how innovations that start at the low end or in new markets gradually move upmarket and displace incumbents who over-serve mainstream customers.
Question 2: In the context of US entrepreneurship, what does 'minimum viable product' (MVP) mean?
- The legally minimum product quality required by US regulations
- The simplest version of a product that allows a startup to test its value proposition with real customers (Correct answer)
- A product with all planned features delivered on minimum budget
- The lowest-cost product in a company's portfolio
Correct answer: The simplest version of a product that allows a startup to test its value proposition with real customers
The MVP concept (from lean startup methodology) involves launching the simplest version of a product to learn from real customer feedback before investing in full development.
Question 3: What is 'digital transformation' in an organizational context?
- Digitizing paper documents for storage
- The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value (Correct answer)
- Upgrading IT infrastructure to the latest software
- Training employees to use email and spreadsheets
Correct answer: The integration of digital technology into all areas of a business, fundamentally changing how it operates and delivers value
Digital transformation involves using digital technologies to create new — or modify existing — business processes, culture, and customer experiences to meet changing business and market requirements.
Question 4: Which framework helps organizations assess their readiness for digital transformation by examining people, process, and technology dimensions?
- Porter's Value Chain
- McKinsey Digital Quotient (DQ) (Correct answer)
- Balanced Scorecard
- BCG Growth-Share Matrix
Correct answer: McKinsey Digital Quotient (DQ)
McKinsey's Digital Quotient assesses digital transformation maturity across strategy, culture, capabilities, and organizational dimensions.
Question 5: What is the 'business model canvas' developed by Osterwalder and Pigneur?
- A financial reporting template for startups
- A visual strategic management tool describing how an organization creates, delivers, and captures value (Correct answer)
- A product design blueprint for software development
- A canvas used for advertising campaign planning
Correct answer: A visual strategic management tool describing how an organization creates, delivers, and captures value
The Business Model Canvas maps nine building blocks — customer segments, value propositions, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure.
Question 6: In corporate innovation management, what is 'open innovation' as described by Henry Chesbrough?
- Making all R&D results publicly available for free
- A paradigm where firms use external ideas and paths to market alongside internal R&D (Correct answer)
- Removing all IP protections to encourage collaboration
- Publishing source code under open-source licenses
Correct answer: A paradigm where firms use external ideas and paths to market alongside internal R&D
Open innovation leverages external sources of knowledge — customers, startups, universities, suppliers — in addition to internal R&D to accelerate innovation and reduce costs.
DBA Innovation, Entrepreneurship, and Digital Transformation 1
What is 'disruptive innovation' as defined by Clayton Christensen?