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:

Hedging Reserve

A financial reserve established to offset potential losses or gains due to future price or currency fluctuations, often related to commodity or foreign exchange hedging.

Capital Reserve

Funds set aside from a company's profits for future investments or to cover anticipated liabilities or losses.

U.S.GAAP

United States Generally Accepted Accounting Principles, which are the set of accounting standards used for financial reporting in the U.S.

Accrual-Basis

An accounting method that records income and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.