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G2 - [BGS-4] Growth through Innovation (organizing for innovation…
G2 - [BGS-4] Growth through Innovation
Keys to innovation
Integrate diverse knowledge
create cross functional teams
create broad vision and shared values
establishing effective lines of communication
manage expectations
Build absorptive capacity
Invest in basic or leading edge research
Reward individuals on the basis of their standing outside the firm -- and to allow publication
Take part in joint ventures or industry consortia that keep the firm “in the loop”
Give away key ideas in order to be a “player”
Encourage diversity
Provide motivation for innovation
establish effective lines of communication
flat structure,not one with a lot of hierarchy
create cross functional teams
create a broad vision and shared values
organizing for innovation
Chaotic(unidivisional)
the skunk works idea
characterized by disorder and conflict
could be fast or slow
Sequential(functional)
go/no go on each point of process
project moved on one by one
Concurrent(project)
cross functional
work together towards entire project
Overlapping(matrix)
allow earlier interaction between
functions
create cross-functional “design house”
it's more emphasis on organizing a process that's gonna minimize those downstream mistakes by addressing them earlier in the design process.
innovation strategies
first-mover's strategy
capture a valuable market position
the idea of creating new products and services
continually innovate to capture temporary economic rents before imitators dilute profits
use firm’s capabilities to defend that position from rivals
second-mover strategy
imitate the first movers
leverage other complimentary capabilities to out-compete rivals
avoid the costs and risks of being the innovator
Rio digital music player-Apple with their iPod
which strategy is best
a firm’s innovative capability
ability to develop new products and services and to manage the innovation process
how
Design an effective development processes
select ideas and articulating clear product ideas
organization of tasks
team composition and tenure
coordinate with other partners(alliances suppliers)
Assimilate knowledge generated outside the boundaries of the firm
important knowledge distributed throughout the firm and the market
Basic research is often done in institutions such as universities or other
invest in the underlying science (to decode the signal, one must build a receiver
absorptive capacity
create a climate
encourage free flows of information
mechanisms for information exchange
incentives to innovate
freedom to fail
a firm's ability to appropriate the gains from innovation
ability to maintain margins after they innovate before others imitate them
how
ability to protect intellectual property
nature of the legal system, the nature of the technology and market
control of important complementary assets
marketing, distribution channels and supporting technology
Appropriating Value from Innovations
what to drive to appropriating value
protect intellectual property's ability
Legal protection
First-mover advantages
learning curves
network externalities
difficult to imitation
Diffusion among customers is fast
a large, lucrative early market
the ability to get a patent is no guarantee that you'll be able to appropriate the value of the innovation.
trade secrets
Patents are difficult to enforce and have a limited lifetime
Control important complementary assets
Support services
Components or supporting technology