school of business administration technology commercialization program welcome to business strategy...
Post on 19-Dec-2015
215 views
TRANSCRIPT
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Welcome toBusiness Strategy and Policy
John A. Hengeveld
week 2 tuesday
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
AGENDA
• Kitty Hawk Case
• Core Competency Article
• Innovators Solution, ch 3-5
• Brown&Eisenhart ch 1-3
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Kitty Hawk
• What went wrong with Kitty Hawk??
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Kitty Hawk viewed by Innovators Solution
• What type of innovation was Kitty Hawk?
• What architecture?
• What type of product definition research?
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Congruence Model – Kittyhawk
Formal OutputsBalanced
ScoreCard:Financial
What real expectationsshould there be?
CUSTOMERInternalHow are
traditional DMD
customers served?
Learning and Growth
What is the learning plan for the group?
EnvironmentResourcesHistory
Formal Organizat
ion
StrongResourceCommitm
ent
Informal Organizatio
n-
TechnicalExcellence
CustomerNeeds Passion
People
Best of the best
Heavyweight
Team
Strategy
Critical Tasks
-$50 dumb
drive
Find new markets
Learn and Grow
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
The rest of DMD
Formal OutputsBalanced
ScoreCard:Financial
CUSTOMERInternal
Learning and Growth
EnvironmentResourcesHistory
Formal Organizat
ion
ResourceAllocatio
nIssues
Strong Sust
Innov Processes
Informal Organizatio
nStrong
culture of innovation
Strong culture of customer
commitment
People
Rest of the best
Key innovator
sout
Strategy
Critical Tasks
• -Maintain competitive technology
• Be performance leader for HP
solutions• Keep OEM relationship
strong
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Technology CyclesR
ate
of I
nnov
atio
n
Time
Product innovation Process Innovation
Substitution EventDD DD
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Types of Innovation andInnovation Streams
T&O, Winning Through Innovation, figure 7.3
InexpensiveMechanical Watch
Smaller, ThinnerMechanicalWatches
Swatch
ContinuousAim gunfire
First Watch
Quartz Watch
New
Existing
Mar
kets
IncrementalSmall Extensionsof ExistingTechnology
ArchitecturalReconfiguresExistingTechnology
DiscontinuousNew operating principles inCore Subsystems&/or DiscontinuousProcess innovation
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Organizational CyclesThe success syndrome
FIT SUCCESS
Size and AgeInertia:StructuralCultural
Successin StableMarkets
Failurein MarketShifts
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
How did executive team perform?
Executive Team•Provide Clear, Simple Vision•Balance Multiple Architectures•Makes Bets on Shifting Innovation•Manage Ambidextrously
•Today/Tomorrow•Large/Small – Incremental/Discontinuous
Inc•Culture Promoting
Continuous Improvement•Incremental Change•Eliminate Variability
•Reward Volume & Cost
Arch•Culture Promoting
Linkage Across Units•Adding and Linking
Subsystems•Reward Integration
Disc•Culture Promoting
Breakthroughs•Many Small Failures
•Learn by Doing•Reward Experimentation
and Innovation
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Kitty Hawk Viewed byBrown and Eisenhart
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Innovators Solution Key PointsCh 3-5
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
IS: Ch 3
• The view of market segmentation analysis is central to the failure of disruptive technologies, or the vunerability to disruption of core businesses.
• Table 3-1 in the book
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Extracting Growth from Non Consumption
• Target customers are trying to get a job done but .. They lack a simple inexpensive solution
• Customer compares disruptor with no solution at all.. Easy performance hurdle
• Deploy technology to make it foolproof• Create a whole new value network (whole
product)
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
IS F 4-3
High CommitmentRigid Plan
High CommitmentFlexible Plan
Low CommitmentRigid Plan
Low CommitmentFlexible Plan
Framing in the Venture Building Process
Opp
ortu
nity
Thr
eat
Fra
min
g in
the
Res
ourc
e A
lloc
atio
n P
roce
ss
Threat Opportunity
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
IS f Ch5-1
Time
Perf
orm
ance
Interdependent Architectures, I
ntegrated Companies
Modular Architectures, Nonintegrated companies
Range f SolutionsCustomersCanUtilize
Beat competitorswith functionalityAnd reliability
Beat competitors withspeed responsivenessAnd convenience
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
IS Ch 8
• Points of Executive Leverage in Strategy Making Process– Carefully control initial cost structure– Actively accelerate the process of finding a
viable strategy – discovery driven planning– Personally drive the balancing
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Deliberate Planning
• Make assumptions about the future
• Define a strategy based on those assumptions and make financial projections
• Make decisions to invest based on financial projections
• Implement strategy to achieve financial results.
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
Discovery Driven Planning
• Make targeted financial projections
• What assumptions must be true in order for these projections to work?
• Implement a plan to learn- test critical assumptions and remove barriers which emerge
• Invest to implement the strategy
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&E Improvisation Survey
No Rules…………………… Many RulesFollowed…………………… IgnoredUndefined………………….. LockstepExpected…………………… ProblematicTargeted……………………. Distributed WidelyEnd Products……………….. ProcessesClear………………………... AmbiguousAlways…………………… NeverConstant…………………… InfrequentChanneled………………… Chaotic
There are:Rules are to be:Processes are:Change is:Responsibility is:Focus is on:Priorities are:.. they drive ResourceCommunication is:Communication is:
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&E Coadaptation
Frequent ………………… RareCorporate ………………… LowLevelClear ……………….. UndefinedTeam play ………………… Individual WinCommon ………………… Rare
X-Business collab is:.. Decisions are made:Roles of different bus:The Culture rewards:Reinventing the wheel:
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&EFive Forces Core
CompetenceGame
Theory
Competing
On the Edge
Assumptions Stable
Industry
Firm as bundle of competences
Dynamic
Oligopoly
Industry inRapid change
Goal Defensible position
Sustainable
advantage
Temporary
advantage
Continuous
Flow of adv.
Performance
Driver
Industry
structure
Unique
competencies
Right
Moves
Ability
To change
Strategy Pick Industry
Pick position
Shape firm
Craft vision
Build competencies to
match
Make the right
Competitive &
Collaborative moves
Gain the edge:
Time pace, shape
semicoherent,
Strat. direction
Success Profits Long Term
Dominance
Short Term
Wins
Continual
Reinvention
SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM
B&E Chapter 1
Playing the Improvisational Edge
Capturing Cross-BusinessSynergies
-Coadaptation
Gaining Advantagesfrom the Past-Regeneration
Winning TomorrowToday
-options-learning
Setting the Pace-time pacing
Time Pacing
Edge of Time
Edge of Chaos