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Business Strategy & Innovation Management - Coggle Diagram
Business Strategy &
Innovation Management
Production
Function
Smaller new comer can beat incumbent
Innovation
New combinations with economic profit
Schumpeter (Freeman, 2003)
“Creative Destruction” (Schumpeter, 1942)
Technology change - not constant number-> additional value function of production
Efficient new thing takes over old thing.
5 phenomena of innovation
a new good
a new method of production
a new market
a new source of supply of raw materials
a new form of organization
Innovation
study in MOT
Income from production changes when a manufacturer takes new innovation.
smaller manufacturer can take over the bigger
incumbent by new innovation.
Types of innovation
Productivity
Dilemma
Product - specifications + features
Dominant design
Process - cost competition
Mature market
Post- mature
New comer - equal position with incumbent
Technology changes : mature market -> new market
Competence destroying
Competence Enhancing Innovation: builds up on an existing technology using firm's existing competencies.
Competence Destroying Innovation: replaces a technology and therefore render firm's competencies obsolete
Disruptive innovation
new comer can disrupt a part of market from incumbent market
incumbent firms can't take care of disrupted new market because of existing C 's needs
Architectural innovation
Value
Functional value
Non-functional (Emotional) value
Regulatory sandbox
2018 - METI - Home appliance - High speed PLC - Panasonic
Merits
Deregulate “Self-regulation” due to overspec. culture
Break barriers to achieve the goal
DEREGULATION - utilize, control waste - effectiveness - diversity - radical innovation
REGULATION - productivity - avoid waste - efficiency - incremental innovation
