Please enable JavaScript.
Coggle requires JavaScript to display documents.
Managing Innovation Within Firms 3 - Coggle Diagram
Managing Innovation
Within Firms
3.1. The dilemma of innovation management
Fundamental tension between the need for stability and the need for creativity
Stability and static routines
McDonald's
has standardized processes and routines across its global operations, ensuring that tasks such as food preparation, customer service, and inventory management are completed quickly and efficiently. These static routines allow McDonald's to maintain consistency in product quality and service, which is essential for competing in the fast-food industry. By relying on this operational stability, McDonald's can serve millions of customers daily while maintaining cost efficiency and meeting customer expectations.
Develop new ideas and new products
Vinamilk
is a famous enterprise with quality and nutritious milk products. Along with the main product of milk, Vinamilk also invests in developing coffee, ice cream, mineral water.
The ways help firms escape from the innovation dilemma
2 organizational capabilities
Exploration:
Is about search, discovery, autonomy, innovation and embracing variation (new adventures)
Truong Food is a new startup company with traditional sour meat products from Phu Tho, a new product in the F&B market.
Explotation:
is about efficiency, increasing productivity, control, certainty and variance reduction (old routines)
Coca-Cola is a famous brand with its main product line being carbonated soft drinks associated with the brand.
Ambidexterity**
Is about doing both, to compete simultaneously in both mature and emerging markets.**
Hi coffee is a new product line of Vinamilk, Vinamilk needs a good balance between maintaining its main product, milk, and developing its new product, coffee.
Execute the effectively innovation
Integrate efforts and prevent the mainstream business from undermining the new effort
Traditional taxi companies like VinaSun and MaiLinh, due to their refusal to accept change, have lost market share to new companies like Grab and Gojek.
Undermining
New Business Can Appear as a Problem, Not a Solution:
causing cannibalization and distraction for existing business
Grab owns a modern car booking model that causes difficulties for taxi businesses.
Inertia:
Inertia from the mainstream business will hinder efforts to design a new organization
Due to the lag in developing and improving the platform's features compared to its competitors Facebook, Myspace. Yahoo! 360 seems to have been left behind.
Resources:
Need to know how to allocate resources, because established businesses have a voracious appetite for resources.
Essential Phone (PH-1) is a phone line founded by Andy Rubin, one of the founders of Android, Essential had difficulty raising capital and lacked resources to market the product.
Organize the new business initiative as a separate entity.
Amazon
developed Amazon Web Services as a separate division from its main retail operations, with its own dedicated team for this service.
3.3. Managing Innovation Projects
Incremental innovation
The iPhone 16 series is the new line of phones that Apple launched in 2024, featuring a new camera control button.
.
Modular innovations
The Z Fold 6 has significant improvements in camera quality compared to the Z Fold 5.
Radical innovation
The internet was a completely new product at the time it was launched, and it has fundamentally changed the way the world operates.
Architectural innovation
The foldable screen design of Samsung is a groundbreaking innovation that has significantly boosted the company's revenue.
3.2. Managing Uncertainty
Pearson’s uncertainty map
Uncertainty about ends
The chef is trying out a new fruit but doesn’t know whether it will be suitable for a dessert, a main course, or a drink.
Uncertainty about means
The company knows they want the electric car to run 500 km on a single charge, but they’re unsure whether to use a new type of battery or redesign the car to achieve this goal
.
Pearson’s uncertainty map.
DEVELOPMENT ENGINEERING:
The target is clear but how to achieve this target is unclear.
(QUADRAN 2)
VinFast aims to increase battery capacity and reduce charging time to replace gasoline vehicles, but it still lacks specific innovation.
APPLICATIONS ENGINEERING:
There is an uncertainty regarding the target
(QUADRAN 3)
VR and AR technologies are highly anticipated in medicine and virtual reality spaces, but these technologies are still not fully developed.
EXPLORATORY RESEARCH
: High degree of uncertainty about process and output
(QUADRANT 1)
The idea for a medical appointment scheduling app similar to Traveloka. Mediqueue would help users conveniently access healthcare services.
COMBINING MARKETI OPPORTUNITIES WITH TECHNICAL CAPABILITIES:
This area covers innovative activities where there is most certainty
(QUADRAN 4)
New iPhone models are launched every year with new features and are always well-received.
Dominant Design Initially Not Clear
This is the process of improving the aerodynamics of automotive technology: the first cars had high air resistance, and subsequent technologies have improved this, leading to enhanced vehicle performance.
Young market
This product reflects the current market's preference for green, environmentally friendly products.
Implications of Dynamism in New Markets
To develop a potential product line like Apple, Vision Apple needs to invest in resources and time to ensure the product's success.
