a strategic innovation
TRANSCRIPT
-
8/8/2019 A Strategic Innovation
1/31
A STRATEGIC INNOVATIONPROCESS MODEL
10/30/2010 1FOSTIIMA Business School
-
8/8/2019 A Strategic Innovation
2/31
PASSION AND GOALS
1. Mission and Goals
Goal Pull A firm sets some goals-for example, to be number one
or two in any market it enters-and then usesinnovation to achieve these goals
Innovation Pull A firm that is endowed with some unique capabilities,
which enable it to recognize and exploit innovation,may make its goal to be the most profitable firm in theworld, or to have the highest market share in anymarket that it uses its capabilities to enter.
10/30/2010 FOSTIIMA Business School 2
-
8/8/2019 A Strategic Innovation
3/31
Innovation
Use of new knowledge (technical or
market) to offer new products or
services that customers want
10/30/2010 FOSTIIMA Business School 3
-
8/8/2019 A Strategic Innovation
4/31
Innovation Strategy
Pattern of activities about when and
how to use new knowledge to offer
new products or services
10/30/2010 FOSTIIMA Business School 4
-
8/8/2019 A Strategic Innovation
5/31
-
8/8/2019 A Strategic Innovation
6/31
Global
Strategy in which firms locate their
development facilities where the
environment is most suitable fortechnological innovation and from
there, they develop products for
world markets
10/30/2010 FOSTIIMA Business School 6
-
8/8/2019 A Strategic Innovation
7/31
Globalization Strategy
This answers the question, when
and where (in what country) should
a firm locate what functions in orderto better innovate for world-wide
customers?
10/30/2010 FOSTIIMA Business School 7
-
8/8/2019 A Strategic Innovation
8/31
Terms Explained
Backward Integration:
Start producing some inputs
Beta:
Measure of market risk from the
capital asset pricing model (CAPM)
10/30/2010 FOSTIIMA Business School 8
-
8/8/2019 A Strategic Innovation
9/31
Terms Explained
Boundary Spanner
Individuals within a team who acts as
the transducer between the team andthe firm (organization) during the
exchange of information that takes
place during the process of innovation
10/30/2010 FOSTIIMA Business School 9
-
8/8/2019 A Strategic Innovation
10/31
Terms Explained
Breakthrough Knowledge:
Knowledge that never existed before
Call Option
Right to buy an asset at a specified
price(exercise price) on or before aspecified date (exercise date)
10/30/2010 FOSTIIMA Business School 10
-
8/8/2019 A Strategic Innovation
11/31
Terms Explained
Complimentary Innovation:
Other innovations that play an
important role during an innovationprocess
Corporate Strategy:
Answers the question: what business
should the firm be in?
10/30/2010 FOSTIIMA Business School 11
-
8/8/2019 A Strategic Innovation
12/31
Terms Explained
Entrepreneurial Rents:
Profits from innovation
Era of Incremental Innovation:Phase of a technology life cycle, following
the emergence of a dominant design,when technological uncertainty is
considerably reduced and attention isfocused largely on incremental productinnovation. Same is the specific state.
10/30/2010 FOSTIIMA Business School 12
-
8/8/2019 A Strategic Innovation
13/31
Terms Explained
Functional Strategy:
Answers the question: what kinds of
activities should each of thefunctional units (R&D, manufacturing,
marketing, and so on) be engaged in
and what kinds of resources should beallocated to them?
10/30/2010 FOSTIIMA Business School 13
-
8/8/2019 A Strategic Innovation
14/31
-
8/8/2019 A Strategic Innovation
15/31
Terms Explained
IPO
Initial Public Offering
A firms first offering of common stock to the
public
10/30/2010 FOSTIIMA Business School 15
-
8/8/2019 A Strategic Innovation
16/31
Terms Explained
Invention:
New idea, concept, technique, device,
or process that has not beencommercialized
Joint Venture:
Separate legal entity set up by two ormore firms with ownership rights toits output
10/30/2010 FOSTIIMA Business School 16
-
8/8/2019 A Strategic Innovation
17/31
Terms Explained
Process Innovation:
Use of new methods, techniques,
materials, task specifications, orequipment in an organizations
manufacturing or service operations
to offer a lower cost or better qualityproduct
10/30/2010 FOSTIIMA Business School 17
-
8/8/2019 A Strategic Innovation
18/31
Terms Explained
Limit Pricing
When incumbents lower current
prices to discourage new entrantsfrom entering a market
10/30/2010 FOSTIIMA Business School 18
-
8/8/2019 A Strategic Innovation
19/31
Limit Pricing
NIH-Syndrome:
Not-invented-here
Situation in which a group or firm rejects anidea, technology, or innovation, regardless of
its merits, just because it is from outside the
organization
10/30/2010 FOSTIIMA Business School 19
-
8/8/2019 A Strategic Innovation
20/31
10/30/2010 FOSTIIMA Business School 20
Strategic Innovation Process1. Goals
4. Choice of
profit site
2. opportunities
Innovation
and threats
3. Capabilities
5. Business
Strategy
6. Innovation
Strategy
7. Functional
Strategy
8. Globalization
Strategy
Strategic
Direction
11. People9. Structure 10. Systems or
processes
12. Profit and
their protection
-
8/8/2019 A Strategic Innovation
21/31
2. Innovation and Threats
10/30/2010 FOSTIIMA Business School 21
-
8/8/2019 A Strategic Innovation
22/31
3. Identifying Capabilities
10/30/2010 FOSTIIMA Business School 22
-
8/8/2019 A Strategic Innovation
23/31
4. Choosing a Profit Site
10/30/2010 FOSTIIMA Business School 23
-
8/8/2019 A Strategic Innovation
24/31
5. Business Strategy
10/30/2010 FOSTIIMA Business School 24
-
8/8/2019 A Strategic Innovation
25/31
6. Innovation Strategy
10/30/2010 FOSTIIMA Business School 25
-
8/8/2019 A Strategic Innovation
26/31
7. Functional Strategies
10/30/2010 FOSTIIMA Business School 26
-
8/8/2019 A Strategic Innovation
27/31
8. Globalization
10/30/2010 FOSTIIMA Business School 27
-
8/8/2019 A Strategic Innovation
28/31
9. Organizational Structure
10/30/2010 FOSTIIMA Business School 28
-
8/8/2019 A Strategic Innovation
29/31
10. Systems or Processes
10/30/2010 FOSTIIMA Business School 29
-
8/8/2019 A Strategic Innovation
30/31
11. People
10/30/2010 FOSTIIMA Business School 30
-
8/8/2019 A Strategic Innovation
31/31
12. Profits and Their Protection
10/30/2010 FOSTIIMA Business School 31