Industry Dynamics of Technological Innovation

2 Sources of Innovation

25, 35, 36, 44

Overview

• Source of Innovation as a System 16

Creativity

• def 18-19

Translating Creativity into Innovation

• R&D by firms
  • R 25
    • Basic Research
    • Applied Research
  • D 26
  • ‘Valley of death’ 28-32
  • Science push / Demand pull 33
• Firm linkages w/ customers, Suppliers, Competitors ‘n Complementors
  • Complementors 35
  • Internal / External sourcing of innovation 36
• Universities and Govnt-funded Research 37-42

Innovation in Collborative Networks

• Collab 44
• Technology Clusters 45-46

———————————————————–

3 Types and Patterns of Innovation

4, 28, 30, 35, 38, 39-42, 44-46, 52, 53

Types of innovation

• Overview 4
• technology trajectory 4
• Dimensions to categorize innovations
  • Product v. Process 5-7
  • Radical v. Incremental 8-13
  • Competence-Enhancing v. Competence-Destorying 14
  • Architectual v. Component 13, 15
  • Technological – Non Technological – Social 16
  • Sustaining v. Disruptive 19
    • Open v. Close 21-27
• Innovation type matrix 18

Technology S-Curves

• def 28-34
• Double S-Curves 35-38
• Technology Diffusion 39-40
• Slower shift towards new technology 41-43
• S-curves as a prescriptive tool
  • def 44
  • Limits 45-46

Technology Cycles 50-53

———————————————————–

4 Standard Battles and Design Dominance

10, 21-23, 28, 29-31, 39-41, 71-74

Case Discussion (Mobile Payment) 5-11

Why dominant Designs are Selected

• Dominant design 17-18
• Why
  • Increasing returns to adoption 21-28
    • Learning effects 22
    • Learning curves 23-26
    • Learning rate 27
    • Prior Learning and Absorptive Capacity 28
  • Network externalities 29-38
    • def 29-30
    • Installed base 31-35
    • Complementary goods 35-38
  • Govnt regulation 39
  • Path dependence 40-41
• Winner-Take-All markets 42-46
  • good for consumers? 71-74

Multiple Dimensions of Value 47-74

• overview 50-51
• types
  • Technologie’s stand-alone value 52-56
    • Buyer utility map 53-56
  • Network externality value 57-59
• Components of value 60-65
• Competing for design dominance in markets with network externalities 67-70

Strategies in Standards Battles 75-

• Types of standards battles 76
• Key strategies 77
• Once you’ve won 78-79
• Rear-guard actions 80
• Lessons from Practice 81-82

———————————————————–

5 Timing of Entry

Overview 5-7

• Self-reinforcing Advantages 5
• First movers, Early followers, Late entrants 6 ### Pros and Cons of First-Movers and Followers 8-31
• First mover advantages
  • Brand loyalty and technological leadership 10
  • Monopoly rents 11
  • Preemption of scarce assets 12-13
  • Exploiting buyer switching costs 14-15
  • Reaping increasing returns advantages 16-17
• First mover disadvantages
  • Incumbent inertia 19-20
  • R&D expense 21-22
  • Undeveloped supply and distribution channels 23
  • Immature enabling tehcnologies and complements 24-26
  • Uncertainty of customer requiremnets 27-29
• Follower advantages 30
• U-shape relationship 31

Factors Influencing Optimal Timing of Entry 32-45

• How certain are customer prefs 34
• How much improvement does the innovation provide 35
• Does the innovation require enabling technologies, and are they sufficiently mature 36
• Do complementary goods influence the value 37
• Threat of competitive entry 38-40
• others 41-45

Strategies to Improve Timing Options 46-54

• Complex matter 49
• a matter of choice by the firm 50
• Parallel development process 51
• Summary 52-53

———————————————————–

Formulating Technological Innovation Strategy

6 Defining the Organizations Strategic Direction

Overview 4-5

• ambitious
• assess its current position
• define its strategic direction
• an evaluation of the firm’s capabilities
• suntainable competitive advantage

Assessing the Firm’s Current Position 6-41

• PEST
• Porter’s 5 force model
  • The degree of existing rivalry 12-14
  • Threat of potential entrants 15-17
  • Bargaining power of suppliers 18-20
  • Bargaining power of buyers 21
  • Threat of substitutes 22-24
  • Threat of complements 25
  • Relationships between 5 forces 26
• Stakeholder analysis
  • Stakeholder 27-28
  • Staleholder analysis 29
    • Internal analysis model 30-33
    • How to be competitive 38-40

Identifying Core Competencies and Capabilities 42-56

• Core competencies
  • def 43-47
  • Steps to develop 48-50, 53
  • Sources 54
  • Core rigidities 55

Strategic Intent 57-60

• def 58

Resources Gap-Actions 61-66

• Identifying the resource and capability gap 62
• The balanced scoreboard 63-66

———————————————————–

7 Choosing Innovation Projects

R&D intensity, DEA

Overview 3-4

The Development Budget 5-9

• R&D intensity 6
• Financing new technology centures 9

Quantitative Methods for Choosing Projects 10-28

• DCF methods 11
  • NPV 13-16
  • IRR 17-20
  • Strengths and weaknesses 21
• Real options method 12
  • def 22-24
  • Examples of real call options 25
  • The value of a call option 26-27
  • Limitations of real option models 28

Qualitative Methods for Choosing Projects 29-47

• def 30
• Screening questions 32
  • Role of customer 33
  • Role of capabilities 34
  • Project timing and cost 35
  • Illustrative factors for project selection 36-40
• Mapping R&D portfolio
  • how to map 41-43, 45
  • why map 44
• Q-sort 46-47

Combining Quantitative and Qualitative Information 48-64

• Conjoint analysis
  • def 50-51
  • steps 52
  • example 53-54
• DEA
  • def 55-56
  • how 57
  • example 58
  • advantage 59
• Scoring models 61-63

———————————————————–

8 Collaboration Strategies

10, 12, 21, 22, 24, 25, 39-47

Overview 3-5

Reasons for Going Solo 6-8

Advantages of Collaborating 9-16

• Advantages 10-11
• Joint venture 12-14
• Reasons for fail 15
• Conditions for success 16

Types of Collaborative Arrangements 17-30

• Strategic alliance 21-23
• Joint venture 24
• Licensing 25-26
• Outsourcing 27-29
• Collective research org 30

Choosing a Mode of Collaboration 31-38

• Summary 32
• Pros and cons of
  • Solo 33
  • Strategic alliance 34
  • Joint venture 35
  • Licensing 36
  • Outsourcing 37
  • Collective research org 38

Choosing and Monitoring Partners 39-47

• Resource fit 41
• Strategic fit 42
• Impact on internal S and W 43
• Impact on O and T 46
• Impact on stratigic direction 44
• Types of governance mechanisms 47

———————————————————–

9 Protecting Innovation

Overview 4-5

Appropriability 6-8

• Appropriability, tacit knowledge, socially complex knowledge 6-8

Patents, Trademarks, Copyrights and Trade Secrets 9-31

• Overview 10-14
• Patents 15-19
• Patent law 20-22
• Trademarks 23-26
• Copyrights 26-27
• Trade Secrets 28-31

The Effectiveness and Use of Protecion Mechanism 32-44

• effect vary 33
• hard for patent and TS 34
• sometimes disclose for better good 35
• dilemma of disclose 36
• solution is to disclose part of it 37
• Wholly proprietary systems and Wholly open systems 38-40
• exmaple 41
• advantage of protection 42
• advantage of diffusion 43
• factors influencing advantage 44

———————————————————–

Implementing Technological Innovation Strategy

10 Organizing for Innovation

Overview 4-7

Size and Structural Dimensions of the Firm 8-19

• pros of big firm 9-11
• cons of big firm 12-13
• Icarus paradox 14
• why small can be better 15-18

Structual Dimensions of the Firm 20-37

• Formalization 20-21
• Standardization 22
• Centralization 23
• Structure of R&D activities 24-26
• Mechanistic v. Organic 28-30
• Ambidextrous organization 32-35
• Skunk works 36-37

Modularity and “Loosely-coupled” Organizations 38-45

Managing Innovation Across Borders 46-58

• problem 47-48
• Center-for-global strategy 49-50
• Local-for-local strategy 51-52
• Locally leveraged strategy 53-54
• Globally linked strategy 55-58

Organizational Culture for Innovation 59-61

———————————————————–

13 Crafting a Development Strategy

Overview 5-7

Launch Timing 8-13

• business seasonal effects 10
• cannibalization 11-12

Licensing and Compatibility 14-19

• issues of diffusion 15-17
• backward compatibility 17

Pricing 20-29

• skim the market 23
• penetration pricing 24-28
• 3 pricing strategies 29

Distribution 30-36

• selling direct v. ysing intermediaries 31-33
• factors for determining types of intermediaries 34
• strategies for accelerating distribution 35-36

Marketing 37-49

• ad 38-41
• promotions and publicity and public relations 42
• tailoring the marketing plan to intended adopters 43-45
• chasm in the diffusion of innovation 46
• usig marketing to shape perceptions and expectations 47-49