1: Strategies and Dilemmas I Flashcards
What happens over time with respect to product innovation and process innovation?
Innovation rate is at its highest when a new technology has just been discoverd.
As innovation reduces perfomance/cost hits its highest, then cost is reduced as better processes are developed. (See: https://imgur.com/a/FVS8JMJ)
What is the “Technology S-curve”?
The Technology S-curve displays the improvement
of performance of a technology through the
collective efforts of multiple actors (e.g., firms,
individuals, institutes, universities, associations,
etc.) over time within an industry or technological
domain. (See: https://imgur.com/a/Bkp5xrH)
What is “The sailing effect”?
When an invading product competes with an established product, it can be seen as if the products “sail” from one to the other. (See: https://imgur.com/a/xkJ8mUE)
How is the R&D budget usually set?
Since most firms face serious constraints in capital resources available for investment, most R&D budgets are set by capital rationing, meaning each project has a priortization and capital availablity is set as a percentage of last years sale.
What is the difference between basic and applied research?
Basic: Aims at increasing understanding of a topic or field without an immediate commercial application in mind
Applied: Aims at increasing understanding of a topic or field to meet a spceific need.
What is development?
Activities that apply knowledge (gained from research) to produce useful devices, materials or processes.
What different types of R&D projects exists?
1: Research or advanced development projects, inveting new science and capturing new know-how
2: Breakthrough development projects, the first generation of an entirely new product or process (family)
3: Platform or generation development projects, a platform or core development project
4: Derivative development projects, “incremental” development projects
What are some technology sourcing strategies?
1: Internal R&D
2: Technology purchasing
3: Acquisitions
4: Joint ventures and alliances
5: Scanning
What are some techonlogy planning strategies?
1: Focus, to defince those capabilities where the firm seeks to achieve a distinctive advantage relative to competitors
2: Source, should the technological capability be developed internally through investments in people, equipment, facilities, methodologies and through advanced development projects or should it be acquired externally?
3: Timing and frequency of implementation, when to develop and when to introduce technology into the market
What is the “cost of cannabalization”?
When a replacement product is introduced to soon from the original product, loosing sales from the orignal product to the replacement. (See: https://imgur.com/a/uNmDVaG)
