innovation
innovation dilemma
Technology push or market pull
Product or process innovation
Open or closed innovation
open innovation （ involves the deliberate import and export of knowledge by an organisation in order to accelerate and enhance its innovation.）
Collaboratories
Crowdsourcing
IBM has established 10 worldwide joint development ventures with other companies and universities.
an organisation broadcasts a specific problem to a crowd of individuals or teams often in tournaments with prizes awarded to the best solution.
balance between open and closed innovation
‘One-shot’ or continuous innovation
Complex and tight-linked innovation
Competitive rivalry
Platform leadership
refers to how large firms consciously nurture independent companies through successive waves of innovation around their basic technological ‘platform’
Examples include: Microsoft and Sony (in the video games market) and Intel (in the computer industry).
innovation diffusion(Diffusion is the process by which innovations spread amongst users. This can vary with respect to both speed and extent.)
Supply side determinants of diffusion
Demand side determinants of diffusion
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Degree of improvement – more improvement encourages change and faster diffusion.
Compatibility – the more compatible products there are, the faster is the diffusion
Complexity – over complex product or marketing
slows down diffusion
Experimentation – ability to test products before purchase (e.g. free trials) encourages diffusion.
Relationship management – ease of getting information and support increases diffusion.
Market awareness – better promotion
(especially ‘push’ campaigns) speeds up diffusion.
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Network effects – diffusion increases as more people adopting the innovation makes it more desirable (e.g. Facebook).
Customer propensity to adopt – targeting to the early adopters (often younger and wealthier consumers) speeds up diffusion by creating a bandwagon effect.
innovators and imitators
first- mover (First-mover advantage exists where an organisation is better off than its competitors as a result of being first to market with a new product, process or service.)
late- mover
experience curve benefits
scale benefits
pre-emption of scarce resources
buyer switching costs
reputation
free- riding- imitating pioneer's strategies but more cheaply
learning- from the mistakes made by pioneers
be a fast- second
being one of the first to imitate the original innovator. Fast second companies may not literally be the second company into the market, but they dominate the second generation of competitors (e.g. Amazon Kindle).
three contextual factors in choosing innovating and imitating
Complementary assets
Fast-moving arenas
Capacity for profit capture
disruptive innovation
Generated by small companies/ new companies
Products and services can substitute existing products/services through copy , imitate， develop existing product. 最后甚至比这些现有的产品和服务更强
现有企业如何警惕和回复disruptive innovation
Corporate venturing – small, innovative businesses with relative autonomy.
‘Intrapreneurship’ – the ability of individuals to perform entrepreneurial activities within a large organisation.
Develop a portfolio of real options – (limited investments that keep opportunities open for the future).
一张表
S- curve
tripping point
timing of the plateau
tipping point
extent of diffusion
‘Closed’ innovation
the traditional approach to innovation, relying on the organisation’s own internal resources – its own laboratories and marketing departments