READING PASSAGE 3
You should spend about 20 minutes on Questions 27-40, which
are based on Reading Passage 3 on pages 10 and 11.
Innovation in Business
Innovation describes the way that we develop new ideas,
products, and approaches, and it is one of the most vital human endeavors. Over
the history of humanity, innovation has made life better in so many different
ways. It is part of human nature to recognize the benefits of innovation;
however, the majority of us have little comprehension of the processes that
actually lead to innovation occurring. This is a frequent topic for discussion
in journals and university lecture theatres. However, in company boardrooms
across New Zealand, the term is heard far too frequently, and more caution
should be applied. Certainly, a recent international survey showed that the
idea of innovation is so broad as to appear almost meaningless, with different
sectors of the business world—or different divisions inside the same
business—often defining innovation in their own way.
While there is an obvious attraction to the new, innovation
is not always about large-scale research and development projects or
revolutionary business models; it can be on a small, highly localized scale and
involve a step-by-step approach. The famous case study of the drinks company
Lucozade shows it can be as simple as adding a screw top to a bottle. This
carefully managed change in packaging shifted the public perception of the
product from a medicine to a sports drink, and Lucozade profited handsomely,
clearly showing their approach was successful. So what steps can businesses
take to keep ahead in the innovation game?
There seems to be a widespread belief that the world's best
ideas are sudden and intuitive. Thomas Edison supposedly invented the light
bulb with a sudden moment of clarity, but in fact, the book Edison: His Life
and Inventions shows that Edison's own inspiration usually resulted from
laborious experimentation, rather than a moment of genius. Thus, business
managers are at risk of overestimating the pace of development while
underestimating the amount of perseverance needed. This is why we must reject
the false assumption that innovation is just a moment of brilliance waiting to
strike.
No exploration of innovation is complete without mention of
Steve Jobs, the late chief executive officer (CEO) of Apple. No one
encapsulated the creative essence of Silicon Valley, the home of many global
tech companies, better than Jobs, but he has also been accused of arrogance.
Jobs' managerial approach often imitated his co-workers but, in part, it was
the fuel for his visionary innovations. He felt it his duty to make society a
better place, but his egotistical behavior could have undesirable consequences,
too. Jobs' former employees have suggested this type of demanding behavior
affects sickness rates and group morale, which in turn may squash creativity
and innovation.
In his 2011 TED (Technology, Entertainment, Design) Talk,
economist Tim Harford made this statement: "Show me a successful
complex system, and I will show you a system that has evolved through trial and
error." It sounds like common sense, and some commentators have
claimed Harford's TED Talk was not persuasive because it was stating the
obvious. But he responds that a trial-and-error approach is not all that
obvious, because society expects all problems to have a quick and simple
solution. Harford is right to point out that both consumers and investors
expect consistent and clear breakthroughs. But the value of step-by-step
innovation is often underrated, and failure may, in fact, be crucial to
eventual success.
Former chief solutions officer at Yahoo, Tim Sanders,
believes that innovation is only "little ideas that combine with other
little ideas that improve themselves into game-changing ideas." This
snowballing effect has similarities to the phenomenon that author and
broadcaster Steven Johnson calls the "hummingbird effect" of
innovation. This points out that progress in a specific area or discipline can
end up triggering small but significant developments elsewhere entirely. A good
case to cite in support of this universal truth would be Gutenberg's printing
press, which was revolutionary in itself for making books accessible to the
masses. However, the press also affected an unrelated industry by causing a
rise in demand for reading glasses.
This highlights the wider idea of connectivity, which is an
essential component of innovation. When Kode Biotech won a recent innovation
award, CEO Steve Henry had this to say: "Most people think innovation
is invention, but they don't understand that innovation is the conversion of
invention into something useful." This is particularly true when it
comes to Kode's highly specialized use of nanotechnology. Henry says that Kode
cannot chase all the opportunities it has created. Instead, Kode's approach is
to collaborate with similar nanotechnology businesses, which take its
innovations and develop them into commodities that can be sold in the
marketplace.
Innovation can be hectic and disorganized, but that is the
way that radical new ideas sometimes come about. But, for established
businesses, the disorderly nature of innovation can seem discouraging.
Previously Unavailable, a specialist innovation consultancy, says that while
84% of businesses consider innovation critical to their future, only 6% are
satisfied with their innovation efforts. Previously Unavailable uses a process
called Black Box, which was developed following a study at Harvard Business
School. Black Box was formed to overcome the barriers that prevent innovation
in larger organizations. Using this unique system, Previously Unavailable will
lease a team of innovation experts on a short-term basis to client
organizations to assist with conceiving, developing, and launching new products
and business innovations. It seems probable that this sort of innovation
consultancy will become increasingly common, just as businesses already employ
specialist consultants for legal, financial, or marketing services.
Questions 27-30
Do the following statements agree with the claims of the
writer in Reading Passage 3?
In boxes 27-30 on your answer sheet, write:
- YES
if the statement agrees with the claims of the writer
- NO
if the statement contradicts the claims of the writer
- NOT
GIVEN if it is impossible to say what the writer thinks about this
27. Most people understand how innovation happens.
28. The word "innovation" is overused in business in New
Zealand.
29. There are many interpretations of what innovation means in business,
according to one global study.
30. Research and development projects have a higher priority today than
in the past.
Questions 31-35
Choose the correct letter, A, B, C, or D.
Write the correct letter in boxes 31-35 on your answer sheet.
31. What is the writer doing in the third paragraph?
A. Criticizing the conclusions of one publication
B. Praising the contribution of a famous inventor
C. Dismissing one common idea about innovation
D. Suggesting that innovation changes over time
32. What is the writer's main point in the fourth
paragraph?
A. Each industry will innovate in its own way.
B. There are pros and cons to strong leaders.
C. Some individuals are more innovative than others.
D. Leadership requires building teams that work together.
33. The writer refers to Gutenberg's printing press in
order to:
A. Compare how two different innovations developed.
B. Illustrate an exception to his point about innovation.
C. Show why one approach to innovation was correct.
D. Give an example of a general rule about innovation.
34. What is the writer's main point in the seventh
paragraph?
A. Companies should cooperate to turn ideas into products.
B. A company tends to make profits from its own innovations.
C. Science and business can often have common goals.
D. Competition between businesses produces innovation.
35. According to the writer, companies like
Previously Unavailable:
A. Have published valuable research about innovation.
B. Help companies recruit people with skills in innovation.
C. Run university courses teaching innovation skills.
D. Can be hired to give businesses advice about innovation.
Questions 36-40
Complete each sentence with the correct ending, A-G,
below. Write the correct letter, A-G, in boxes 36-40 on your answer
sheet.
36. A book about the life and work of Thomas Edison
suggests that
37. People who have worked for CEOs like Steve Jobs claim that
38. Critics of Harford's 2011 TED Talk argue that
39. Steven Johnson's hummingbird effect proposes that
40. Kode Biotech CEO Steve Henry believes that
A. Innovators do not get enough credit for their own
ideas.
B. Innovation may influence a completely different field.
C. Expressing what everyone already knows is pointless.
D. Innovation can be enhanced through collaboration with similar
companies.
E. Innovation requires a great deal of hard work.
F. Copying ideas that already exist is not true innovation.
G. Certain personality types can limit innovation.
✅ Questions 27–30
(YES / NO / NOT GIVEN)
-
Most people understand how innovation happens.
➡️ NO
(“…the majority of us have little comprehension of the processes that actually lead to innovation occurring…”) -
The word "innovation" is overused in business in New Zealand.
➡️ YES
(“…in company boardrooms across New Zealand, the term is heard far too frequently, and more caution should be applied…”) -
There are many interpretations of what innovation means in business, according to one global study.
➡️ YES
(“…a recent international survey showed that the idea of innovation is so broad as to appear almost meaningless, with different sectors…defining innovation in their own way…”) -
Research and development projects have a higher priority today than in the past.
➡️ NOT GIVEN
(There’s no comparison to “the past.”)
✅ Questions 31–35
(Choose A, B, C, or D)
-
What is the writer doing in the third paragraph?
➡️ C. Dismissing one common idea about innovation
(“…we must reject the false assumption that innovation is just a moment of brilliance…”) -
What is the writer's main point in the fourth paragraph?
➡️ B. There are pros and cons to strong leaders
(Discusses Jobs’ visionary nature but also negative effects on morale.) -
The writer refers to Gutenberg's printing press in order to:
➡️ D. Give an example of a general rule about innovation
(“…progress in a specific area…can end up triggering…developments elsewhere…”) -
What is the writer's main point in the seventh paragraph?
➡️ A. Companies should cooperate to turn ideas into products
(“…Kode’s approach is to collaborate with similar nanotechnology businesses…”) -
According to the writer, companies like Previously Unavailable:
➡️ D. Can be hired to give businesses advice about innovation
(“…lease a team of innovation experts…to assist with conceiving, developing, and launching new products…”)
✅ Questions 36–40
(Match each sentence to A–G)
-
A book about the life and work of Thomas Edison suggests that
➡️ E. Innovation requires a great deal of hard work
(“…Edison’s own inspiration usually resulted from laborious experimentation…”) -
People who have worked for CEOs like Steve Jobs claim that
➡️ G. Certain personality types can limit innovation
(“…his egotistical behavior…may squash creativity and innovation…”) -
Critics of Harford's 2011 TED Talk argue that
➡️ C. Expressing what everyone already knows is pointless
(“…claimed Harford’s TED Talk was not persuasive because it was stating the obvious…”) -
Steven Johnson's hummingbird effect proposes that
➡️ B. Innovation may influence a completely different field
(“…progress…can end up triggering…developments elsewhere entirely…”) -
Kode Biotech CEO Steve Henry believes that
➡️ D. Innovation can be enhanced through collaboration with similar companies
(“…Kode’s approach is to collaborate with similar nanotechnology businesses…”)
📌 Summary Table:
| Question | Answer |
|---|---|
| 27 | NO |
| 28 | YES |
| 29 | YES |
| 30 | NOT GIVEN |
| 31 | C |
| 32 | B |
| 33 | D |
| 34 | A |
| 35 | D |
| 36 | E |
| 37 | G |
| 38 | C |
| 39 | B |
| 40 | D |
PASSWORD: 5JULYPASSAGE
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