2 Strategy & Technology Dynamics Flashcards

Learning Objective: Innovation in industry 1. Technological discontinuities and disruptive innovation 2. Strategy in turbulent environments

1
Q

Similarly, Schumpeter defines innovation (5)

A

Innovation as a ”new combination” of
resource

  • ”… the introduction of new goods …,
  • new methods of production …
  • the opening of new markets …,
  • the conquest of new sources of supply
  • and the carrying out of a new organization of any industry”
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Invention vs. innovation (Definition)

A

Invention

  • The conversion of cash into ideas
  • Inventors spent money to create his inventions, but unable to monetize them

Innovation

  • The conversion of ideas into cash
  • Innovators bring ideas to the market, and make money from these ideas
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Product
&
process innovation
(Digramm)

A

< ergänzen >

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Innovation in Industry,
sources of product differentiation (3)

A

Product and Market Expansion
(R&D)

  • New product features
  • New product mix
  • New location and increased presence

Strategic Partnerships and Complexity
(Stakeholder Management)

  • New links with other firms
  • Linkages between functions and complexity

Timing and Reputation
(Sales)

  • Timing
  • Enhanced reputation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Issues, navigating the innovation process (2)

A

Innovation processes,
efficiently manage and select ideas. (V-Modell)

  • These processes often conflict with entrepreneurial thinking.
  • Coordination costs and required modifications usually compromise the original idea.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The technology s-curve

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Discontinuity as one s-curve taking over another

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Rules of thumb for detecting
technological discontinuities (4)

A

1. Decline in R&D Productivity

  • Management feels R&D productivity is declining.
  • Apparent loss of productivity in R&D and industry-wide.
  • R&D deadlines are increasingly missed.
  • Dissatisfaction with a “new broom” R&D manager’s performance.

2. Shifts in R&D Focus

  • Shift from product to process-oriented R&D.
  • Sales growth sources shifting to narrower market segments.

3. Internal Challenges

  • Dissension among R&D staff.

4. Industry Trends

  • Significant variation in R&D spending among incumbent firms.
  • Smaller, weaker firms in the industry investing in radically new technologies.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The disruption has already happened
(~8 examples)

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Impact of disruptive technologies on barriers to entry (~6)

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly