In the Context of Managing Innovation, Identify a Difference Between

question 53

Multiple Choice

In the context of managing innovation, identify a difference between the experiential approach and the compression approach.

• A) The experiential approach is used to manage innovation in highly certain environments, whereas the compression approach is used to manage innovation in highly uncertain environments.
• B) The experiential approach is used during periods of incremental change, whereas the compression approach is used during periods of discontinuous change.
• C) The general strategy in the experiential approach is to build something new, different, and substantially better, whereas the general strategy in the compression approach is to reduce the time and steps to make small, consistent improvements in performance and functionality.
• D) The goal of the experiential approach is incremental improvements in the performance and function of the existing dominant design, whereas the goal of the compression approach is the establishment of a new dominant design.

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Definitions:

Marginal Decision Making

The process of evaluating the benefits and costs of small (or marginal) adjustments to an existing course of action.

Economic Concept

A theoretical construct that represents ideas or theories within economics to explain various aspects of the economy, such as supply and demand, inflation, or growth.

Marginal Analysis

A method used in economics and decision-making that examines the costs and benefits of making small (marginal) adjustments to the quantity of a good or service.

Economic Terms

Vocabulary and phrases specific to the study and practice of economics, encompassing theories, models, and real-world financial practices.