A change in the arrangement of components to create a new product.

• A. Architectural innovation
• B. Act of insight
• C. Configurational innovation
• D. Design protection

Answer: (C)

The idea being tested is about how changing the arrangement of existing parts creates something new. When you reorganize components without adding new ones, you’re altering the product’s configuration—the way its parts fit and work together—to produce a new product. This focus on rearranging existing components to change the overall product design is what configurational innovation is all about. It’s different from architectural innovation, which involves broader shifts in the relationships or interfaces among subsystems and may imply changing how the system is integrated at a higher level. The other options don’t fit the scenario: an act of insight isn’t about product structure, and design protection relates to legal rights rather than how a product is innovated.