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IM Week 4: Strategy and Innovation Management (Refer to key elements of…

- - - - i. Excessive focus on competitors and satisfying customer needs
      - ii. Difficulties in appraising the current environment
      - iii, Problems in determining a possible course of action.
  - - - i. Make deliberate steps (or changes) towards the stated objective
      - ii. Measure and evaluate the effects of the steps (or changes)
      - iii. Adjust (if necessary) the objective and decide on the next step (change)
  - - - National context
      - Appropriation of value
      - Technological trajectory
        
        5 major technological trajectories
        i. supplier-dominated
        ii. scale-intensive
        iii. science-based
        iv. information-intensive
        v. specialised suppliers
      - Firm capabilities
      - Globalisation of innovation
      - Effective routines and approaches
- - - - In the late 90’s, Nokia and Motorola used to be the major providers of mobile phones in the world and Blackberry was the only provider of wireless two-way messaging service devices.
        Nokia and Motorola expanded the mobile phone market, making the mobile phone a must-have device/gadget for a vast number of people worldwide. BlackBerry extended the messaging service market, making the BlackBerry the must-have device/gadget for high-flyer professionals worldwide.
        In 2007, Apple leveraged the second mover advantage in the mobile phone industry, in order to push its new smart phones into an existing market, where consumers had already been made familiar with the basic functionalities of mobile phones by Nokia and Motorola. Also, at that point consumers had already started to attach a status symbol value to mobile phones. Apple was innovative in that it introduced new touch-screen technology for iPhones, based on knowledge developed with its iPods.
        Ever since 2007, Apple released new and ever more sophisticated versions of its iPhones, which saw a continuous steep growth in parallel with the continuous decrease in popularity of both mobile phone produced by Nokia and Motorola and the BlackBerry devices produced by BlackBerry.
- - - - a. Involves detecting signals from the environment.
      - b. What signals, though?
        
        Technological opportunities
        
        Competitor action
        
        Changing market requirements
      - c. Where do innovations come from?
      - d. Key question: whose needs shall we serve?
        
        Existing customers
        
        New customers
      - e. Search strategies
        
        Managing internal knowledge connections
        
        Extending external connections
        
        Sending out scouts exploring multiple futures
        
        Using the web
        
        Working with active users
        
        Deep diving
        
        Probe and learn
        
        Mobilise the main stream
        
        Corporate venturing
        
        Corporate entrepreneurship
        
        Use brokers and bridges
        
        Idea generators
      - f. Key theory: Absorptive capacity
        
        “The ability to recognize the value of new information, assimilate it, and apply it to commercial ends” (Cohen and Levinthal, 1990)
        
        Organisational learning perspective
        
        Requirements
        -Investment in R&D and basic knowledge
        -Efficient knowledge transfers
        -Diversity and redundancy of knowledge
      - g. Innovation search space
    - - a.Innovation is inherently risky, and even well-endowed firms cannot take unlimited risks. It is thus essential that some selection is made.
      - b. What guides the choice?
        
        The flow of signals about the opportunity
        
        Knowledge base of the firm – its distinctive capabilities
        
        The fit with the overall business
      - c. Increasing innovation commitment over time
      - d. Technological knowledge & market knowledge diagram
      - e. In the process:
        
        Build a business case
        
        Build coalitions!
        
        Build a portfolio
      - f. Innovation selection space
    - - a. Involves turning the potential ideas into some kind of reality, e.g. new product or service
      - b. How?
        
        Product teams
        
        Stage reviews
        
        Creativity
        
        Resources
      - c. 4 Key stages
        i. Concept generation
        ii. Project selection
        iii. Product development
        iv. Product commercialisation and review
      - d. Best criteria for success?
        
        Product advantage
        
        Market knowledge
        
        Clear product definition
        
        Risk assessment
        
        Project organisation
        
        Project resources
        
        Proficiency of execution
        
        Top management support
    - - a. “The technological leadership in firms does not necessarily translate itself into economic benefits. The capacity of the firm to appropriate the benefits of its investment in technology depends on:
        i- Its ability to translate its technological advantage into commercially viable products or processes, for example through complementary assets or capabilities in marketing and distribution, and production.
        ii- Its capacity to defend against imitators, for example, through secrecy, standards or intellectual property”
        Tidd and Bessant (2010) p. 533
      - b.Methods of appropriation
        
        Secrecy
        
        Accumulated tacit knowledge
        
        Lead times and after sales service
        
        The learning curve
        
        Complementary assets
        
        Product complexity
        
        Standards
        
        Pioneering radical new products
        
        Strengths of patent protection
        
        Exploiting IPR
        
        . Patents: allow a limited monopoly, usually for 20 years. Requirements:
        
        Novelty – no prior art, including publications, written, oral or anticipation
        
        Inventive step – ‘not obvious to a person skilled in the art
        
        Industrial application – utility test requires the invention to be capable of being applied to a machine, product or process
        
        Patentable subject – discoveries or formulae cannot be patented
        
        Clear and complete disclosure
        
        Copyrights is concerned with the expression of ideas, not the ideas themselves. The test of originality is low. Copyrights differ in lengths depending on the work:
        
        Original literacy, dramatic, musical and artistic works: 70 years after the death of the author
        
        Recordings, films, broadcast and cable programme: 50 years from their creation
        
        Typographical arrangement or layout of published edition: 25 years
        
        Design rights are similar to copyright protection but mainly apply to three dimensional articles, covering any aspect of the shape or configuration, internal or external, whole or part. Design rights exist for 15 years and 10 years if commercially exploited.
        
        Licensing IPR
        
        i. Once you have acquired some form of formal legal IPR, you can allow others to use it in some way in return for some payment, or sell the patent outright.
        
        ii. Licensing IPR can have a number of benefits:
        
        Reduce or eliminate production and distribution costs
        
        Reach a larger market
        
        Exploit in other applications
        
        Establish standards
        
        Gain access to complementary technology
        
        Block competing developments
        
        Convert competitor into fender