Chapter 6: Innovation

1. What best defines innovation according to the chapter?

• Making products cheaper for consumers

• Improving employee satisfaction

• Transforming creativity into actuality

• Copying successful business models

Who introduced the concept of innovation as “doing things differently in the realm of economic life”?

• Peter Drucker

• Joseph Schumpeter

• Elon Musk

• Steve Jobs

Innovation is important for society and organizations because it...

• Enables progress and competitiveness

• Minimizes competition

• Increases employee stress

• Delays product development

What is the national flower of Malaysia?

• Rafflesia

• Hibiscus

• Orchid

• Lotus

What is one reason businesses innovate to stay relevant?

• To hire more staff

• To avoid legal compliance

• To reduce product quality

• To remain competitive in the market

What is incremental innovation?

• Innovation that changes the whole industry

• Continuous improvement of existing products or services

• Radical development of new technologies

• System-wide economic disruption

Which of the following is an example of architectural innovation?

• Using existing technology to reach new markets or consumers

• Replacing all current systems

• Making no changes to existing models

• Offering employee bonuses for creativity

Which type of innovation destroys or replaces existing business models completely?

• Architectural innovation

• Disruptive innovation

• Incremental innovation

• Radical innovation

Which state in Malaysia is known as the “Rice Bowl” of the country?

• Kedah

• Pahang

• Kelantan

• Perak

Bluebird Song Coffee is a café that offers coffee and snacks while featuring local artwork and rotating seasonal menus. Just down the road, Dice and Caffeine Café allows customers to play board games in a gaming-themed environment. Both serve coffee, but they attract different customer experiences and goals.

Which type of innovation is most closely demonstrated by these two businesses?

• Radical innovation

• Disruptive innovation

• Architectural innovation

• Systems innovation