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Chapter 7: MANAGING ORGANISATIONAL KNOWLEDGE - Coggle Diagram
Chapter 7: MANAGING ORGANISATIONAL KNOWLEDGE
Technology development and effort required
Demand - side
Innovation adoption lifecycle
Early adopters
Early majority
Innovators
Late majority
Laggards
Product lifecycle
Development
Introduction
Growth
Maturity
Decline
Supply - side
Industry lifecycle
Maturity
Decline
Growth
Renewal
Introduction
Technology lifcycle and S-cureve
Growth
Maturity
Introduction
Innovation, competition and further innovation
Dominant design
Importance
Collect monopoly rents
Intellectual property
Innovative faster
Example
Apple - iPhone
Sony - Walkman
Radical and incremental innovation
External dimension
Technological impact on market.
Incremental
Modest changes, existing products competitive.
Radical
Major changes, existing products obsolete.
Internal dimension
Knowledge & resources involved.
Incremental
Builds on existing knowledge.
Radical
Requires new knowledge/resources.
Impact on Firms
Established firms
Reinforce capabilities with incremental innovation.
Struggle with radical innovation
New entrants
Benefit from radical innovation as they don’t have to change their existing knowledge.
Reaction to new technology
Competitors react to new product innovations
Influencing technological progress,
Innovation’s life cycle
Fluid
Transitional
Specific
DEVELOPING INNOVATION STRATEGIES
Fast follower/defensive
develop improved versions of
the original
improved in terms of lower cost, different design, additional
features
Leader/offensive
the product is launched into the market before
the competition
the advantages to be
gained from a monopoly, in this case a monopoly of the technology
Cost minimisation/imitative
being a low-cost producer and success is dependent on achieving economies of scale in manufacture
Market segmentation specialist/traditional
meeting the precise requirements of a particular market segment or niche
TECHNOLOGY TRAJECTORIES
The process of a company's technological development over time, requiring learning and knowledge accumulation.
The Resource-based Perspective (RBP)
Coca-Cola has a secret formula and strong brand that help it lead the global beverage industry.
Developing Firm-specific Competencies
KFC has developed local dishes in different markets, like chicken rice in Asia, to attract customers.
Dynamic Capabilities
Netflix shifted from a DVD rental service to streaming, keeping up with the digital consumption trend.
The Acquisition of Firm-specific Knowledge
Starbucks learned from different markets to expand and adjust its menu to fit local cultures, like offering bubble tea in China.
Competencies and Profits
Apple earns significant profits by maintaining design patents and proprietary technology for the iPhone.
Dynamic Competences Enable Innovation
Google develops and changes products like Google Drive, Docs, and Photos to meet digital technology needs.
