Chapter 4 Flashcards
Core elements of innovation strategy formulation
Strategic analysis- what could we realistically do?
Strategic choice/selection- what are we going to do?
Implementation- How are we going to do it?
Strategic monitoring- Over time, is this still what we want to do?
Why do we need strategy?
It provides a direction for change
It is a guiding framework to deploy resources
Path dependency
Idea that what we accumulate by way of knowledge and other resources shapes what we can – and can’t -do- by Kumiko Miyazaki
Dynamic capability
Strategy of being able to adapt and change routines as world shifts
Types of dynamic capability/ strategic dimensions
Competitive Position- current technology, intellectual property, customers
Organizational Process- the way things are done in the firm
Technological Path- strategic alternatives available to the firm
Factors that influence the firms ability to benefit from its technical innovations
Secrecy- how many people within your firm know the way that we use accounting analytics. Ex. Non-disclosure agreement. Drawback is professional communities
Accumulated tacit knowledge- difficult to understand
Long lead times and provide after sales service- Long head start over competitors
Learning curve in production- Productization-Digital Accelerators
Complementary assets- AICPA blessing
Stretch of patent protection
Product complexity
Standards
Pioneering New products
3 distinct clusters of good innovation practice
Technology drivers- look for new technologies
Need seekers- want to be the first to market a technology
Market readers- want to be fast followers
4 kinds of breakthroughs
Technological breakthrough
Business model breakthrough
Design breakthrough
Process breakthrough
5 major technological trajectories
Supplier dominated- Ex. manufacturing
Scale intensive- ex. civil engineering
Science based- ex. electronics, R&D
Information intensitive- Ex. finance, software department
Specialized suppliers- Ex. machinery, instruments
Types of strategic functions
Core or critical- central to corporate competitiveness
Background or enabling- Available and essential to all competitors
Emerging or key- rapidly developing fields of knowledge
Core competencies: Hammel and Prahalad basic ideas
Core competencies provide sustainable competitive advantage, not proucts
Core competencies feed into more than one product
Core competence includes communication, involvement, commitment
Core competencies require focus, one firm cannot succeed in too many of them
Multidivisional firms should be viewed as bundles of competencies
Limitations of core competencies
May not offer a basis for product diversification
Recommends firms should only focus on a few fundamental competencies
Core rigidities- When competencies become established, new competencies may be neglected
3 mechanisms of linking emerging technologies to markets that don’t exist
Motivation- requires senior management to communicate importance of radical innovation
Insight- critical connection, involves those with extensive technical knowledge and expertise
Elaboration- demonstrating technical feasability
Open innovation
Idea that R&D activities, product markets, investments should be globalized
Specialization based structure/Augmenting
Firm develops global centers of excellence in different fields which develop a technology for the world
Helps achieve a critical mass of resources
