7 Flashcards
INNOVATION CHALLENGES IN THE AUTOMOTIVE INDUSTRY
1-4
- Lightweight engineering
- Automated Driving
- Drivetrain Electrification
- Car Connectivity
The Network: managing partnerships
1-4
1 theory-centric
2 customer-centric
3 technology-centric
4 process-centric
The Network: managing partnerships
1 theory-centric
- understand transition from resource-based view to relational view of the firm
The Network: managing partnerships
2 customer-centric
- uncover critical interdependencies within the network
The Network: managing partnerships
3 technology-centric
- link between product architecture and network structure
The Network: managing partnerships
4 process-centric
- explore the role of network orchestration
Resource-based View of the Firm
- multiple business units/ subsidiaries
- operating in isolation
- rent creation through resource possession & control by the firm
Relational View of the Firm
- embedded in a web of relationships (network)
- rent creation through shared resources between network members
Relational Rent
- are supernormal profits
- jointly created in an exchange relationship
- cannot be generated by either firm in isolation
Sources of Relational rents
1 complementary resource endowments
2 interim relation-specific assets
3 interim knowledge sharing routine
4 effective interim governance
Sources of Relational rents
1 complementary resource endowments
- distinctive resources that generate greater rents together
- more than sum of each alone
-> modularity of network and dual network strategy
Sources of Relational rents
2 interim relation-specific assets
- specialized assets in conjunction with assets of a partner
-> jointly develop assets
-> integrated development and manufacturing
Sources of Relational rents
3 interim knowledge sharing routine
- interfirm interactions that transfer/Recombinate/create knowledge
-> regular working group meetings and use of Windchill PLM
Sources of Relational rents
4 effective interim governance
- governance mechanisms to minimize transaction costs
- formal = contracts
- informal = trust
-> network management function and clear contractual arrangements
Opportunities of Innovating in networks
1-4
1 enable learning (access to external knowledge base - new to market)
2 increase responsiveness (respond to market changes - fit-to-market)
3 reduce uncertainty (sharing risk and costs - cost-to-market)
4 save time (collaboration is faster - time-to-market)
Threats of Innovating in networks
1-4
1 build capabilities (focal company has no skills in working in partnerships & cooperations)
2 protect IP (intellectual property, ensure exclusive use/control)
3 control the development (coordinate actives)
4 control the costs
Dual Network Strategy @Streetscooter
1-2
1 Quality performers
- components with high customer value (battery, door)
- select quality leader
2 Cost Leader
- components with low impact on customer value
- cost leader selection
LEG 1 Partners
1-4
- Thyssenkrupp
- Kirchhoff Gruppe
- Uni Siegen
- Gedia
LEGs
1-9
1 Body
2 Exterior
3 Interior
4 Chassis and Safety Systems
5 Powertrain
6 Battery
7 Thermal
8 Electronics
9 Full Vehicle
Definition: The ecosystem lens
The ecosystem is defined by the alignment structure of the multilateral set of partners that need to interact in order for a focal value proposition to materialize.
- structure of multilateral set of partners
- interact to create value prop
- for focal company
Bestandteile des Ecosystems
1-4
1 focal firm
2 Components: supplier
3 Complements: complementor (app developers, ..)
4 customer
Electric vehicle ecosystem
Complements
1-4
- Registration
- Financing / Leasing
- Recharge batteries / recharge stations
- Maintenance / service station
Electric vehicle ecosystem
1
2
3
4
1 focal firm: Streetscooter
2 Components: supplier/LEGs
3 Complements: registration, financing, recharging, service
4 customer
Streetscooter ecosystem, previously
1
2
3
4
1 focal firm: Streetscooter
2 components: supplier, LEGs
3 complements: DHL: recharge stations, service
4 customer: DHL
Streetscooter ecosystem, after purchase
DHL is
- system integrator
- provider of complements
- and customer
Challenges in distributed ecosystems @streetscooter
1-4
1 Geographical distance (165km to partners)
2 Organizational boundaries (80+ partners)
3 Disciplinary interfaces (cooperation in numerous disciplines: engineers, business, developers, …)
4 Goal conflicts (opportunistic behavior)
Tacit Knowledge
- implicit, unausgesprochen knowledge
- can not be written down, not codified
- how can tacit knowledge be transferred:
physical interaction through members of network
weekly meetings in LEGs
monthly meeting of LEG leads
Explicit knowledge
- can be written down, can be codified
- can be formalized
Critical Network Management Processes
1-3
1 knowledge mobility
2 value appropriability
3 ecosystem stability
Critical Network Management Processes
1 knowledge mobility
- knowledge dispersion within ecosystem
- needs to be available wherever required
-> knowledge absorption, ecosystem identification, inter-firm socialization
“regular LEG workshops; integrated PLM system for tacit/explicit knowledge”
Critical Network Management Processes
2 value appropriability
- capturing value creation
- distributing among ecosystem members
- avoiding free riding and opportunistic behavior
-> trust, procedural justice, join asset ownership
“membership in network; IP rights; clear contractual framework”
Critical Network Management Processes
3 ecosystem stability
- stability is needed for effective value extraction
-> ecosystem reputation, anticipated future gains, multiplexity
“dedicated network management function with rules for network entry and exit”
