Đề thi & Đáp án IELTS Recent Actual Test – Reading passage 3 – A Comparative Study of Innovative Practices in Business
A. BÀI ĐỌC
A Comparative Study of Innovative Practices in Business
Results of interviews with corporate executives and senior innovation officers in four of the largest publicly-traded companies and one government agency in the Chicago-area, provide some insights into how businesses approach innovation.
The dictionary defines innovation as ‘the introduction of something new’. Regardless of the type of innovation – whether it be product, process, or service – it results in significant change. This change could be as simple as ‘changing the way we do something routine,’ a breakthrough which provides a substantial benefit to the customer, or one that dramatically increases the revenue or profitability of the company.
Participants interested in breakthrough innovation believe ‘if innovation doesn’t deliver bottom-line results, it is just creativity’. Indeed, the very definition of innovation for Afuah (2003) is ‘invention plus commercialization.’ The relationship of innovation to financial performance was well demonstrated by Kirn and Mauborgne (1997). In manufacturing environments, they found that while 86% of product launches involved some small improvements to existing models – that is, incremental changes – they accounted for only 62% of total revenues and 39% of total profits. The remaining 14% of launches – the real breakthrough innovations – generated 38% of total revenues and a huge 61% of total profits.
Innovation may offer one significant way that companies can gain advantage. Utterback’s (1994) concept of ‘dominant design’ provides insight into how an innovation can create a temporary monopoly situation that will weaken competitive forces; however, when an innovative product or service is launched, rivals typically begin to copy it (once patents run out). Hence, it is necessary for the company to continuously seek further ways to innovate.
Every innovation process has its strengths and weaknesses, but it seems that when a company sets up a systematized innovation process it communicates the importance of innovation to the entire organization. In these companies, more resources are devoted to development. The best companies have learned to systematize the process (Hargadorn & Sutton, 2000).
The primary disadvantage to having a structured innovation process is speed to market – the more structure, the longer the lead time is from idea to product. The only company that described its process as ‘quick’ did not have such a process. Employees were empowered to solve problems and create new products for the customer by responding to demand. While this benefits customers, the company stated it lacks systems to share learning with other segments of the organization. A potential disadvantage of this approach, according to Utterback, is that evolutionary change can be missed when companies are too focused on pleasing customers.
The most challenging aspect of any innovation is determining marketability. No company said it lacked creative ideas or creative people, but many ideas require significant resources to test, develop, and launch. Millions of dollars are at stake, so an element of risk-taking is required.
Taking risks is generally defined as being able to drive new ideas forward in the face of adversity. Publicly-traded companies have a major dilemma. To guarantee a leadership position, they have to stay on the leading-edge of innovation. This requires a long-term approach and a high tolerance for risk. Investors, especially in a down economy, want short-term results. As investors’ tolerance for risk decreases, so does the company’s ability to take the significant financial risk necessary to create breakthrough change; however, most recognize that investing in innovation is the ‘right thing to do’.
One company actively pursues a rather unusual strategy of ‘acquiring’ innovation by purchasing other smaller companies or partnering with specialized companies. This enables the acquiring company to bring a product to market more quickly and gives the smaller company access to funds it might not otherwise have.
How can a company involve all its employees in the innovation process? It may be as simple as requesting new ideas. A brainstorming session during a staff meeting need only take 30 minutes. Another system is to use existing ‘suggestion box’ processes. Involving employees in idea-generation can reap some large benefits at a very low cost. Only modest monetary rewards are necessary for successful innovation ideas, especially since many companies have found that employees place high value on recognition.
In most organizations, teams are extensively used to evaluate ideas, but rarely to generate them. Companies need to learn how to construct teams for the purpose of innovation. A team member should be selected based on their tendency to be more creative or more risk-taking. This could markedly increase innovation output. According to Hargadorn and Sutton, using teams to capture and share ideas is one method of keeping ideas alive – a key step in the innovation process. Good ideas need to be nurtured by teams and incorporated into the information and communication systems of the company.
In conclusion, innovation can be difficult to structure. It is the authors’ perception that even the most innovative companies in the sample underinvest in market research during the concept refining phase.
Risk could be reduced considerably by adoption of this strategy, but, of course, it could not be eliminated.
Most of the ‘problems’ cited by participants were due to a low tolerance for risk – by employees (what they would or would not say), and by committees (being afraid to invest money without knowing the return on investment). Raising the risk tolerance would reduce the amount of analysis required to bring a new idea to market, thus shortening the cycle time of new product/service development. According to psychologists Kahn and Hirshorn, people come alive when they feel safe. It is threat and anxiety that inhibit them. It would follow that in order for people in organizations to take risks, lack of success must be tolerated. The organizations that manage risk most effectively transform those risks into challenges and opportunities.
B. BÀI TẬP
Question 27-33
Look at the following theories and the list of experts below. Match each theory with the correct expert A – E.
Write the correct letter A – E in boxes 27 — 33 on your answer sheet.
NB You may use any letter more than once.
List of experts
A Afuah
B Kirn and Mauborgne
C Utterback
D Hargardorn and Sutton
E Kahn and Hirshorn
Questions 34-40: Complete each sentence with the correct ending A-I below.
A. can be to develop a sympathetic manufacturing environment.
B. must put time and money into innovation.
C. can be a very cost-effective way of achieving innovation.
D. may require a more sophisticated communication system.
E. may give rise to a lengthy period between initial concept and launch.
F. could be attributed to an unwillingness to accept risk.
G. can be to work out the saleability of a future product.
H. would be to put more money into the analysis of customer demand.
I. might involve collaboration with another company with particular expertise.
Điểm số của bạn là % - đúng / câu
C. GIẢI THÍCH ĐÁP ÁN
Questions 27-33: dạng Matching Features Cách làm:
| |
27 A business cannot rely on the success of one good innovation. Khi một sản phẩm hoặc dịch vụ mới được công bố, các đối thủ sẽ bắt đầu sao chép sản phẩm đó ngay khi bằng độc quyền sáng chế (patents) hết hạn. Cho nên các công ty cần phải tiếp tục tìm ra những cách thức mới để cải tiến (necessary to seek further ways to innovate) = Một doanh nghiệp không thể chỉ dựa vào thành công của 1 sáng chế mới (cannot rely on the success of one renovation) => Đáp án C. Utterback | Innovation may offer one significant way that companies can gain advantage. Utterback’s (1994) concept of ‘dominant design’ provides insight into how an innovation can create a temporary monopoly situation that will weaken competitive forces; however, when an innovative product or service is launched, rivals typically begin to copy it (once patents run out). Hence, it is necessary for the company to continuously seek further ways to innovate. |
28 A group approach is an effective way of generating innovation. Việc sử dụng các nhóm (using teams) để lưu giữ và chia sẻ các ý tưởng (capture and share ideas) là một cách để đảm bảo sự tồn tại của các ý tưởng – chìa khóa trong quá trình cải tiến sáng tạo (keeping ideas alive – a key step in the innovation process) = Phương pháp tiếp cận theo nhóm (a group approach) là một cách hiệu quả để thúc đẩy sự cải tiến sáng tạo (generating innovation). => Đáp án D. Hangardorn and Sutton | According to Hargadorn and Sutton, using teams to capture and share ideas is one method of keeping ideas alive – a key step in the innovation process. Good ideas need to be nurtured by teams and incorporated into the information and communication systems of the company. |
29 Employees are more creative in a culture that accepts failure. Kahn và Hirshorn so sánh công nhân sẽ trở nên sáng tạo khi các công ty thông cảm với việc họ chưa thành công như việc con người chỉ sống khi họ cảm thấy an toàn (Cấu trúc It would follow that chỉ sự tương đồng) => Đáp án là E. Kahn and Hirshorn | According to psychologists Kahn and Hirshorn, people come alive when they feel safe. It is threat and anxiety that inhibit them. It would follow that in order for people in organizations to take risks, lack of success must be tolerated. The organizations that manage risk most effectively transform those risks into challenges and opportunities. |
30 Radical innovations will provide greater income than minor changes. Những cải tiến mang tính đột phá (real breakthrough innovations) mang lại 61% trên tổng số lợi nhuận, trong khi những thay đổi nhỏ (incremental changes) chỉ mang lại 39% trên tổng số lợi nhuận = Những cải tiến mang tính triệt để (radical innovations) mang lại nhiều lợi nhuận (income) hơn những thay đổi nhỏ (minor changes) => Đáp án là B. Kirn and Mauborgne | The relationship of innovation to financial performance was well demonstrated by Kirn and Mauborgne (1997). In manufacturing environments, they found that while 86% of product launches involved some small improvements to existing models – that is, incremental changes – they accounted for only 62% of total revenues and 39% of total profits. The remaining 14% of launches – the real breakthrough innovations – generated 38% of total revenues and a huge 61% of total profits. |
31 Business with a structured approach to innovation are more likely to succeed Những công ty tốt nhất (the best companies) đã học được cách hệ thống hóa quá trình cải tiến (systemize the process) = Các doanh nghiệp với cách tiếp cận cải tiến một cách hệ thống (a structured approach to innovation) có khả năng thành công cao hơn (more likely to success) => Đáp án là D. Hangardorn and Sutton | Every innovation process has its strengths and weaknesses, but it seems that when a company sets up a systematized innovation process it communicates the importance of innovation to the entire organization. In these companies, more resources are devoted to development. The best companies have learned to systematize the process (Hargadorn & Sutton, 2000). |
32 Innovation consists of a new idea combined with business potential. Đổi mới sáng tạo (innovation) = phát minh mới (invention = new idea) + giá trị thương mại (commercialization = business potential) => Đáp án là A. Afuah | Participants interested in breakthrough innovation believe ‘if innovation doesn’t deliver bottom-line results, it is just creativity’. Indeed, the very definition of innovation for Afuah (2003) is ‘invention plus commercialization.’ |
33 A business that concentrates on corresponding to clients’ needs may overlook the need for the wider development. Thay đổi mang tính cách mạng (evolutionary change) có thể bị bỏ lỡ nếu các công ty quá tập trung vào việc làm hài lòng khách hàng (pleasing customers) = Doanh nghiệp tập trung vào đáp ứng nhu cầu của khách hàng (corresponding to clients’ needs) có thể bỏ qua (overlook) nhu cầu phát triển rộng hơn (wider development) => Đáp án là C. Utterback | A potential disadvantage of this approach, according to Utterback, is that evolutionary change can be missed when companies are too focused on pleasing customers. |
Questions 34-40: dạng Matching Sentence Endings Cách làm:
| |
34 Unfortunately the development of an organised innovation process. => Đáp án là E. May give rise to a lengthy period between initial concept and launch Một quá trình cải tiến thống nhất (organised innovation process = structured innovation process =) kéo dài thời gian (give rise to a lengthy period = the longer the lead time) để biến ý tưởng thành hiện thực (between initial concept to launch = from idea to product) | The primary disadvantage to having a structured innovation process is speed to market – the more structure, the longer the lead time is from idea to product. The only company that described its process as ‘quick’ did not have such a process. |
35 One of the most difficult issues in innovation. => Đáp án là G. Can be to work out the saleability of a future product. Vấn đề khó khăn nhất của bất cứ sự cải tiến nào là quyết định xem sản phẩm đó có bán được ngoài thị trường không (marketability = saleability) | The most challenging aspect of any innovation is determining marketability. No company said it lacked creative ideas or creative people, but many ideas require significant resources to test, develop, and launch. Millions of dollars are at stake, so an element of risk – taking is required. |
36 A company wanting to maintain a leading position in business. B. Must put time and money into innovation. Để giữ vững vị trí dẫn đầu (guarantee a leadership position = maintain a leading position) các công ty phải đầu tư cải tiến (investing in innovation is the right thing to do = must put time and money into innovation) | To guarantee a leadership position, they have to stay on the leading – edge of innovation. This requires a long-term approach and high tolerance for risk. Investors, especially in a down economy, want short-term results. As investors’ tolerance for risk decreases, so does the company’s ability to take the significant financial risk necessary to create breakthrough change; however, most recognize that investing in innovation is the ‘right thing to do’. |
37 A different approach to achieving innovation. => Đáp án là I. Might involve collaboration with another company with particular expertise. Một chiến lược khác mà các công ty sử dụng là mua lại các công ty con hoặc hợp tác với các công ty (purchasing other smaller companies + partnering = involve collaboration with other company) chuyên biệt trong một lĩnh vực nào đó | One company actively pursues a rather unusual strategy of ‘acquiring’ innovation by purchasing other smaller companies or partnering with specialized companies. This enables the acquiring company to bring a product to market more quickly and gives the smaller company access to funds it might not otherwise have. |
38 Getting staff to come up with new ideas. C. Can be a very cost-effective way of achieving innovation. Để nhân viên tham gia vào quá trình sáng tạo ý tưởng là một biện pháp có chi phí thấp nhưng mang lại hiệu quả cao (reap some large benefits at a very low cost = cost-effective way) | Involving employees in idea-generation can reap some large benefits at a very low cost. Only modest monetary rewards are necessary for successful innovation ideas, especially since many companies have found that employees place high value on recognition. |
39 A recommendation for companies already committed to innovation. => Đáp án là H. Would be to put more money into the analysis of customer demand. Quan điểm của tác giả (author’s perception) = lời khuyên (recommendation). Các công ty đã có những cải tiến sáng tạo rồi còn đang chưa đầu tư đủ vào nghiên cứu thị trường (underinvest in market research) = Cần đầu tư nhiều tiền hơn vào phân tích nhu cầu khách hàng (put more money into the analysis of customer demand) | It is the author’s perception that even the most innovative companies in the sample underinvest in market research during the concept refining phase. |
40 Problems experienced by companies participating in the study. => Đáp án là F. Could be attributed to an unwillingness to accept risk. Vấn đề mà các công ty tham gia nghiên cứu gặp phải là khả năng chấp nhận rủi ro kém (low tolerance for risk = unwillingness to accept risk) | Most of the ‘problems’ cited by participants were due to a low tolerance for risk – by employees (what they would or would not say), and by committees (being afraid to invest money without knowing the return on investment). |
