innovation axes market productproduct technology manufacturing technology (process)
TRANSCRIPT
INNOVATION AXES
Market
ProductProduct Technology
Manufacturing Technology (Process)
MEDINOL
Market
ProductProduct Technology
Manufacturing Technology
Market Driven Innovation
Picture 8.2: Second GenerationPicture 8.1: First Generation
Picture 8.3: Third Generation
Generations of Products
Water Saving
PHASE I
Water Saving
DrippersDrip Technology
Market Driven Innovation
Manufacturing Technology
Water Saving
PHASE II
Water Saving
DrippersDrip Technology
Product Driven Innovation
Manufacturing Technology
Growth Control
Drip, Liquid Fertilizers Polymer, Control
Technologies Feeding System
Market Driven Innovation
PHASE III
Manufacturing Technology
Market
ProductProduct Technology
Manufacturing Technology
Technology Driven Innovation Product Driven Innovation
Fixion™ IM (Intramedullary) Nail
Fixion™ IL (Interlocking) Nail
DISC O TECH
THE B-TWIN EXPANDABLE SPINAL SYSTEM
B-Twin Expanded Configuration(up to 15 mm diameter)
Post-Operative (after expansion)Anterior-Posterior View
B-Twin Reduced Configuration(5 mm diameter)
DISC O TECH
Market Driven Innovation
Corning Glass Fiber optics Apple IBM PC
3 M Post it
Seagate-Conner 3.5 HDD
Product Driven Innovation
Sony-Philips Compact Disk
Nike : Tc: nylon, Tn: Max Air, Max chock
Technology Driven Innovation
Raytheon Microwave
Laser, Bell Labs
Manufacturing Driven Innovation
IKEA – LACK table and Honeycomb, Ogla and gas
WHY CONTINUOUS/DISCONTINUOUS INNOVATION?
Continuous Innovation• Existing infrastructures• Existing knowledge• Existing markets• Incremental• Convergent thinking-
progressive refinements• Increasing specialization
Discontinuous Innovation• Discovery of new
knowledge related to market need or technological capabilities
• From horse to car• Business reshaping:
kerosene for lighting; ice for cooling; IT+telecom and airline, banking, entertainment
PRINCIPLES OF DISRUPTIVE TECHNOLOGY
Good Management is the reason that companies fail because they listened to customers wants and needs , invested in technology to support customers and subsequently lost market leadership (Christensen,1997)
• Companies depend on customers and investors.• Small market don’t solve problems of large firms. • Market that don\t exist cannot be analyzed• Technology supply may not equal market demand• Disruptive technologies are lower performing• Companies overshoot their market with technology • IBM survived the move to PC’s• More experienced firms made better decisions
SOURCES OF DISCONTINUITY
New market PC, Mobile phone
New technologyPhoto and digital images
New political rules Free trade, Communism
Running out of roadKodak
Change in market-behaviorApple, McDonalds
DeregulationTelecom, airlines
Rules of the game changeAmazon, cell phone
Architectural innovationPhoto-lithography in chip
CELL PHONES FORECASTING FOR AT&T
Cell phone quantity
1984 1994 2000 Time
17 Millions
900,000
R&D GENERATIONS
1st Generation :• Unbounded search for
scientific breakthrough• Leap from current to new
knowledge• Breakthrough inventions
2nd Generation• Applicability• Project management• Fusion innovations
R&D GENERATIONS
3th R&D Generation • Marketing role:
determine customer needs
• R&D role: supplies technology
• Continuous innovation: experience, expectations walls Fig. 1.7
4th R&D Generation• Mutually dependent
learning• Market evolution:
Competitive architecture• Broader mission for R&D• Organizational capability• Fusion & Discontinuous
Innovation: beyond the walls. Fig. 1.8, 1.9, 1.10
3rd GENERATION & CONTINUOUS INNOVATION
Market Knowledge
Scientific & Technical Knowledge
Wall of Experience
Wall of Expectations
Continuous Innovation
Pc, Mc, Tc
DISCONTINUOUS INNOVATION
Market Knowledge
Scientific & Technical Knowledge
Wall of Experience
Wall of Expectations
McTn
Mn TnMn, Tc
Pc Tc Mc
FUSION INNOVATION
Market Knowledge
Scientific & Technical Knowledge
Wall of Experience
Wall of Expectations
Market Fusion
Technology Fusion
Market & Technology Fusion
MARKET & TECHNOLOGY FUSION
Market Fusion• Milk + Juice Drinks• Cheese + others for
breakfast• Printer+ Scanner+Fax
for new applications• Telephone + TV• Cell phone + Portable
Computer
Technology Fusion• Optics-Electronics-
Microscope• Fiber optic + laser• Laser + Audio• Composite Materials
Market Knowledge
Scientific & Technical Knowledge
Wall of Experience
Wall of Expectations
Target zone: new technology, latent need
PERFORMANCE IMPROVEMENT INDUSTRY VERSUS CUSTOMER
Product performance
Time
Low-end markets
High-end markets
Disruptive technology
Trajectories –customer needs performance
A
B
DISCONTINUOUS INNOVATION AND BUSINESS STRATEGY
Nokia forest eqpt-paperCell phone,to morrow?
Vodaphone steel tubes Cell phone services
Tui miningTravel group (Thomson)
Kodak
Palm
PC- DISRUPTIVE TECHNOLOGY
EVOLUTIONARY THEORY
Theory of dominant design Single basic architecture that
becomes the accepted market standard (Anderson-Tushman)
Punctuated Equilibrium Periods of of incremental
change, punctuated by breakthrough
• New comers initiate competence
• Major tech innovations• Competitive turmoil• Boeing 247, 707, 747
Jolty theory of change
Abrupt alterations in
environments
Disruptive Technology
Nelson and Winter: The core concern of evolutionary theory is with the dynamic process by which firm behavior patterns and market outcomes are jointly determined over time
Source: Ettlie J.E.(2006) Managing Innovation Elsevier p 70-84
Source: Tidd J. Bessant J. Pavitt K.(2006) Managing Innovation, John Wiley and Sons p 173
THE CORE COMPETENCE OF THE CORPORATION CK Perahalad G/ Hamel
COMPETENCIES
CORE PRODUCTS
BUSINESS UNITS
END PRODUCTS
INNOVATION STRATEGIES
• Miles & Snow(78) Defenders, Prospectors, Analyzers• Freeman(82) Offensive, Defensive, Imitative,
Dependent, Traditional Opportunistic
• Ettlie and Bridges(87) Aggressive technology policy
Long term investment in technological solution
Planning human resources for it
Openness the environment
Structural adaptation• Kerin et al (92) First movers
Ettlie J.E.(2006) Managing Innovation Elsevier p 111-114
THE AGGREGATE PROJECT PLANNING FRAMEWORK
Radical
Technology change
Next generation
Improvement
Base
New market New Customer More sales Replace current product
Breakthrough
Platform
Derivative
Product support
Impact on Market
LINEAR MODELS OF INNOVATION
Science and Technological Needs of the
Technology Developments Market
R&D
Manufacturing
Marketing
Market
Technology PushStarting Point
Market(ing) ? Pull
Market
Scientific Knowledge
Technology Concept
Product Development
Production
Starting Point
MP: New market services and goods that seek new technology
TP: New ideas in technology that seek applications
MARKETING PULL-TECHNOLOGY PUSH
System Technology Map: Robot
Technology Push Marketing Pull
Manipulation & Control Automobile
Sensing: Vision, Tactile Aerospace
Internal Communication Electronics
Environment Communication
TECHNOLOGY PUSH NEED PULL COMPARED
Technology push• Start with what easily
can be researched• Address the need of
the atypical user• Get locked into one
technical solution
Need Pull• Looks at needs that
are easily identified• Continue to change
the definition of the opportunity
• Lack a champion a true believer
SIMULTANEOUS COUPLING MODEL
Manufacturing
R&D Marketing
An Overview of Innovation in Landau and Rosenberg (Eds )The Positive Sum Strategy Washington DC National Academy of Sciences
INTERACTIVE MODEL OF INNOVATION
R&D Marketing
Product
Manufacturing
Market Knowledge
Scientific & Technological
Knowledge
Idea Innovation
Technology Push
Marketing Pull
Market
NETWORK MODEL
Freeman C. (1992) Network of Innovators, a synthesis of research issues in Freeman C, The Economics of Hope London Pinter 93-120
R&D
Finance
Production Marketing
Internal Environment
External Environment
Tidd J. Bessant J Managing innovation John Wiley 2006 p 287
Tidd J. Bessant J Managing innovation John Wiley 2006 p 304
Tidd J. Bessant J Managing innovation John Wiley 2006 p 338
TECHNOLOGY POLICY AND COMPETITIVE STRATEGIES
Cost leadership
DifferentiationFocus segment Cost –diff
Product technology change
Reduce cost, efficiency
Quality, features
Design-performance
Process technology change
Economies of scale
Quality, fasterTune production-delivery
Porter M.E. “The Technological Dimension of Competitive Strategy” Research on Technological Innovation Management and Policy 1 (1983) pp 1-33
THE INNOVATION MAP
INTERNAL ENVIRONMENT
EXTERNAL ENVIRONMENT
M
TP
Tc
Tn
Pc
Pn
Mn
Mc Mf
Mfn
Mfc
The Firm/ Product
`
INTERNAL ENVIRONMENT
EXTERNAL ENVIRONMENT
M
T P
Tc
Tn
Pc
Pn
Mn
Mc
KNOWLEDGE AXES AND GATE KEEPERS
Knowledge axis Gate Keeper
Mfn
Mfc Mf
PHASES IN MARKET LIFE CYCLE AND INNOVATION BASIS OF COMPETITION
Early Growth Mature
Sales
Time
Functionality Reliability Convenience Price
DISK DRIVE PERFORMANCE MET MARKET NEEDS
A
BC
200
3000
30
10
6
74 78 80 85 90
Capacity Provided
Capacity Demanded
MB
HDD invade to Portable ComputerHDD invade to
PC
HDD invade to minicomputer
3.5inch5.25inch
8 inch
14 inch
Mainframe
Source: Christiansen p16
TIME OF ADOPTION OF INNOVATION (Roberts)
TECHNOLOGY ADOPTION LIFE CYCLE
2.5% 13.5% 34% 34% 16%
Innovators Early Early Majority Late Majority Laggards
Adopters
PragmatistVisionary Conservative