Technologie und Innovationsmanagement (Subject) / 3.Innovation Strategy (Lesson)

chap.3

This lesson was created by mariadoria.

Learn lesson

This lesson is not released for learning.

back  |  next 1 / 2

• What is a strategy? Strategy means making clear-cut choices about how to compete
• What is Corporate Strategy? Corporate Strategy can be defined as "...the pattern of major objectives, purposes or goals and essential policies and plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be..."
• Strategic Management Strategic Management is a way of approaching business opportunities and challenges aimed at formulating and implementing strategies that promote a superior alignment between the organization and its environment and the achievement of its goals
• What processes is strategy going through? Name the 3 types of strategy over time. Intended Strategy, Realized Strategy, Emergent Strategy
• What is intended strategy? It reflects the plan rationally conceived and conceptualised by management to achieve a predetermined clear goal
• What is realized Strategy? Is the strategy that is eventually implemented. It passes through a multitude of negotiations, agreements and compromises.
• What is emergent strategy? Is the predominant part of the implemented strategy, which is formed from individual decisions Comes from a complex social process in which individual managers interpret and adapt the communicated strategy
• Name the 5 P's of strategy. What do they show? Plan, Ploy, Pattern, Position, Perspective it shows different conceptions of the term strategy Depending on the perspective, strategy can mean different things
• What does the Vision do? it articulates the positions that an organization would like to attain in the distant future Future aspirations that lead to an inspiration to be the best in one's flield of activity
• What are the characteristics of a vison? It creates identity and shared purpose inspires and motivates long-term focus, low complexity, high abstraction
• What is a mission? Describes what an organization is and why it exists Essential purpose of the organization, concerning questions like "What is our business", "Who are out customers?"
• What are the characteristics of a mission? Feasible and reachable precise and clear mid- to long-term focus, medium complexity
• What is a strategy? bundle of decisions, actions and behaviours that aim at achieving long-term success Align (1) Strengths & weaknesses, (2) opportunities & threats, (3) objectives& value, and (4) stakeholder expectations
• What are the characteristics of a strategy? Highly complex Mid- to long-term focus Low abstraction
• Two schools of thought have different views on competitive advantage. Name them and the focus that they have Market-based view: Capability of companies to identify market opportunities, Focus on market-relevant characteristics Resource-based view: A company's strategic resources, skills and competences are the foundation for competitive advantage, Focus in the internal perspective
• Explain the market-based view to competitive advantage (Competitive advantage principle, market positions, paradigm, main author, Difficulties/Critique) Privileged market positions (barriers to competition) arising from the structure of the market Competition within industry leads to asymmetries (industry position) Market Structure-conduct-performance Porter -Static view -Focusing on (short-term) industry competition -Neglecting resources/firm idiosyncrasies, complementarities and path dependencies
• Name Porter's five-forces, what does the model do? - Threat of potential Entrants, Treat of substitutes - Bargaining Power of Suppliers, Bargaining Power of Buyers - Degree of existing rivalry the model helps to determine a market's attractiveness Market determines company success, Firms can influence the environment for their benefit
• Describe the resource-based view to competitive advantage (Competitive advantage principle, resource conditions, Paradigm, authors, Difficulties/Critique) Distinctive, valuable firm-level resources that competitors are unable to reproduce Valuable, Rare, inimitable, Non-substitutable (VRIN) Recource-Conduct-Performance Wernerfelt, Barney Ignoring factors surrounding resources (e.g., markets) Potentially tautological framework (e.g. if value is defined as giving competitive advantage)
• Explain the concept of dynamic capabilities it expands the resource-based view Resting on distinctive processes (ways of coordinating and combining) shaped by the firm's asset positions (such as the firm's portfolio of difficult to trade knowledge assets and complementary assets), and the evolution path(s) it has adopted or inherited Integrate, build, and reconfigure internal and external competences to adress rapidly changing environments Teece, Winter Potentially tautological framework (same argument as with Resource-Bases View)
• What is the connection between Innovation Strategy and Firm Strategy Innovation Strategy is derived from Firm Strategy
• What is innovation Strategy and what relevant Questions are part of it? (4) Innovation Strategy is a part of overall business strategy that determines when and where innovation is required to meet the aims of the organization and lays out in broad terms what is to be done about it Where is innovation needed and which dimension of innovation is needed? When to enter a market? How much change ist required? How high is the aspired level of newness? Which distinctive competencies and capabilities are necessary to establish and maintain competitive advantage? Should we build the competencies ourselves or partner with others? How should innovation be organized and managed to meet changing environmental conditions?
• What are the core components of an Innovation Strategy? Product Market Strategy and Technology Strategy Both strategies result in a self-reinforcing cycle. Product-market strategy and technology strategy are linked via platforms on the company's core products
• What does the product market Strategy consist of? the market segments and target customers to be addresses The product policy guidelines The timing of the product launch
• Technology Strategy The required technologies The allocation of resources regarding these technologies, including make-or-buy decisions The timing of technology development (technology roadmaps)
• What do the product market strategy and the technology strategy result in? Both Strategies result in a self-reinforcing cycle. Product-market strategy and technology strategy are linked via platforms or the company's core products
• What is the S-Curve model is a conceptial foundation for... ...technological development
• Decribe the basic concept of the S-Curve Technology S-curve models are based on the idea of technology life cycles (birth, growth, decline of technologies) S-Curve is a graphical design that demonstrates the performance of a technolgy relative to its cumulative R&D investments Slope describes R&D productivity, i.e. the increase of performance of a technology by an additional use of R&D resources Shape is due to slow introduction phase and natural performance limits
• What Assumptions are made for the S-Curve model? At any time, technologies can reach their natural performance limits at least in a certain application area Totally new technologies arise and will substitute the current technologies
• Where can the S-Curve model help? It can help to time transitions
• What are the strengths of the S-Curve Approach? The Technology S-Curve is a centerpiece in thinking about technology and innovation strategy Inductively derived theory of the potential for technological improvement Useful insights at an aggregate, industry level about the potential of the technology
• What are the weaknesses of the S-Curve Approach? Selection of Technologies to be integrated in the analysis Determination of the performance scale Estimation of the cumulated R&D investments of the analyzed technologies Big uncertainty regarding the further development course and performance limits of the analyzed technologies Not all technologies follow s-curved patterns
• Describe the refinement of the definition of the degree of innovation regarding the 4 dimensions: Technology, Organization, Market, Environment A radical innovation has high novelty in all four dimensions Technology: Newness of the technological principle (change in s-curve), changes in the architecture, and/or leaps in technical performance Organization: Required changes in the organization (processes, competences, structure, culture, strategy), lacking internal resource fit Market: New customer value, creation of new markets, increase in adoption risk, and/or change value chain Environment: Required changes in the environment (infrastructure, norms, values, legislation) lacking external resource fit
• What do you know about the relationship between Innovativeness and success it is not so clear Reasons for more success through innovation: Higher customer benefit through new functionality Differentiation from the competition Temporary monopoly Reasons for less success through innovation High risk of technical and market failure High complexity and high costs Understanding and adaptation problems with customers Lack of synergies with existing capabilities
• When do empirical results show consistent results regarding innovation? What are the individual dimensions that have partial effects? Empirical results are consistent when aggregated according to the innovativeness dimensions Overall, cumulative evidence suggest a positive effect The market dimension has a strong positive effect the organizational dimension has a negative effect: organizational consequences of innovation are often not accounted for Surprisingly, the innovativeness on the technology dimension has no direct effect the environment dimension also has a negative effect
• What are the empirical results regarding the degree of technological innovation? The degree of technological innovation has an indirect effect on success because it positively influences the other three dimensions; the overall influence is therefore zero, because positive and negative indirect effects are equally strong the cumulated influence is inverted U-shaped (there is an optimal degree of innovativeness)
• What implications regarding Innovativeness can you give? Innovativeness is a central strategic variable Systematic evaluation of the degree of innovativeness before and during the project is essential Organizational and environmental dimensions must be taken into account in project evaluations A sense of proportion in selecting innovation projects is necessary- no innovation for the sake of innovation Classic project and success criteria are rather unsuitable for innovative projects and can lead to early project termination Conscious selection of a small number of highly innovative projects in combination with incremental projects - portfolio in combination with incremental projects - portfolio approach to innovation is necessary
• Explain the Innovator's dilemma The logical, competent decisions of management that are critical to the success of their companies are also the reason why they lose their positions of leadership Very often new, so-called "disruptive technologies" do not give benefits to important mainstream customers - they are only valueable for very different newstream customers. However, management is assessed in terms of customer satisfaction of existing and very important mainstream customers
• What are sustaining technologies? Sustaining technologies improve the performance of established Products along the dimensions of performance that mainstream customers in major market have historically valued Although incremental innovations are typically sustaining, a radically new technology with completely new customer benefits can also be sustaining
• What are disruptive technologies? Disruptive technologies are innovations that first result in lower product performance in estabilshed value networks but have new performance attributes Leading firm's most profitable customers generally do not want, and initially cannot use, products based on disruptive technologies Products based on disruptive technologies are typically cheaper, simpler, smaller, and more convenient to use Disruptive technologies typically are first commercialized in emerging or insignificant markets
• Disruptive Innovations originate in two types of markets. Name them. Low-end market and new market
• What is the Low-end market Incumbents: High margins, well-known and profitable customers Ever improving products Adjusted processes Disrupters: Poorly defined customers "Good enough" products
• What are new markets? Turn non-consumers into concumers E.g. new challengers in the photocopying industry provided affordable solutions to individuals (former non-consumers) New value network
• What Reactions for incumbents are possible? Absorb the disruptive technology in the main business Focus on existing business/technology and strengthen it Ignore the disruptive technology and do nothing Build a separate organization for the disruptive technology
• What is Christensen's Recommendation regarding disruptive technologies? Absorb the disruptive technology by building a separated organizational function Strengthen the core business and relationships with customers by building sustaining innovations A separate organizational to focus on growth opportunities of disruptive technologies. (separated from the core business) Re-integration to the main organization after success and growth
• What critique on Christensen's Recommendation do you know? Organizational separation does not have a significant impact on innovation success in case of radical innovation Separation also has disadvantages: higher visibility of new unit (easy to terminate) Redundancy (no use of synergies with main organization) Internal competition and conflicts with main organization Resource intensive
• What two timing strategies do you know? The pioneers Perspective The followers Perspective
• What are the first Mover advantages? Establish barriers to imitation Reap early profits Leadership reputation with customers & users Create switching costs Lock-in key suppliers Define industry standards Pre-empt scarce resources (see next slide) Capitalize non-linear effects of s-curves, learning curves and diffusion curve (see following slides)
• What are the first mover disadvantages? Incur pioneering costs, from which followers can also benefit Experience greatest demand uncertainty Experience difficulties of unproven technologies ("bugs") Cope with changing customer/ user needs Make irreversible specific capital investments Cope with unexpected low-cost imitation
• Pioneers can preempt scarce and valuable resources. Name the 6 resources from the lecture. Geographic space Communication space Technical knowledge space Cultural Space Legal Space Distribution space
• What is geographic space? Prime physical locations with access to local resources: natural resources, traffic flows, financial flows, consumption flows, local knowledge-flows, political decision-making flows, etc.

back  |  next 1 / 2