Unit 10

Question 1

What does “evolution” mean in technology?

Answer 1

Evolution means gradual change over time due to:
- New ideas
- Competition
- Environmental pressure

Question 2

Darwin & Natural Selection

Answer 2

Natural selection = organisms with useful traits survive & reproduce.
Weak traits disappear over time.

Key words:
survival of the fittest, scarce resources, competition, adaption

Question 3

Punctuated Equilibrium (Stephen Jay Gould)

Answer 3

Long periods of stability, followed by sudden radical change.

Nokia Example:
Nokia was stable & dominant.
iPhone disrupted the market.
Nokia failed to adapt → lost relevance.

Question 4

Innovation
-> Sustaining vs. Disruptive Innovation

Answer 4

Innovation is introducing something new that becomes established & changes a system until a new equilibrium is reached.

Sustaining: improves existing systems, e.g. annual iPhone update -> no altering of markets

Disruptive: replaces or destroys old systems, e.g. Uber -> redefines markets

Question 5

Idea vs. Invention vs. Innovation

Answer 5

Idea = mental image of something new (-> creativity)

Invention = I realise the idea via prototype

Innovation = invention becomes mainstream & generates value

Question 6

3 dimensions of digital innovation

P,C,E

Answer 6

Plentiful
Connecting
Evolving

Question 7

Plentiful

Answer 7

Plentiful = digital technologies produce large amounts of data that are:
Transparent
Accurate
Up-to-date

Question 8

Connecting

Answer 8

Connecting = digital technologies link people, systems & organizations that were previously separate.

Question 9

Evolving

Answer 9

Evolving = digital innovations are never finished.

They are constantly:
Updated
Redefined
Co-created by users & firms

Question 10

4 Risks of Digital Innovation

Answer 10

Market Concentration = platforms = promote dominant firms = smaller competition gets pushed out

Job displacement

Ehthic data privacy, algorithmic bias & digital surveillance.

Digital divides: Unequal access to digital technologies can exacerbate existing inequalities.

Question 11

Creative destruction describes the process by which innovation disrupts established markets and organizations, leading to the decline of old structures and the emergence of new ones.

Answer 11

In the digital economy, this dynamic is accelerated. A disruptive innovation can quickly undermine even dominant firms, forcing them to either adapt or disappear. The rise of streaming services like Netflix and the simultaneous decline of physical DVD rentals (Blockbuster) provides a well-known example.

Question 12

Creative Destruction

Answer 12

Innovation disrupts existing markets

new destroys old → creates new

🧠 Trigger: streaming → Blockbuster collapse

Question 13

What is business model innovation?

Answer 13

new ways to create, deliver & capture value, (=disruptive innovation).

Question 14

What is business model transformation?

Eselsbrücke:
Innovation = NEW model → disrupts
Transformation = CHANGE old model → sustains

Answer 14

change of an existing business model to stay competitive (= sustaining innovation)

🧠 adapt or die
=> adjustment of existing market
=> competitive

Question 15

Who typically drives business model innovation vs. transformation?

Answer 15

Innovation: Start-ups (e.g. Airbnb, Uber, YouTube)

Transformation: Established firms (e.g. Microsoft → cloud, Adobe → subscriptions)