Managing Risk, Complexity And Uncertainty In Markets

Question 1

What is makes adaptiation to new technologies so complex?
Explain technology adaption curve

Answer 1

Technology adaptation curve describes lifecycle of an innovation in relation to the main engagement groups at each stage.
• Dynamic environment and continuous progress often does not allow innovation to complete entire cycle and represents continuous innovation cycle.
• Each group can be allocated to a profile and targeted accordingly.

Question 2

What are the advantages and disadvantages of first movers and followers ?

Answer 2

First movers advantages are following:
• Technological leadership
• Customer advantage
• Supply chain advantage
Disadvantages include:
• Increased risks
• First perception uncertainty
• Starter complexity

Followers advantages are following:
• Information for strategic decision making
• Time for strategy establishment
Disadvantages include:
Increased competition
Allocated market share

Question 3

What are the two aspects to take into account when deciding to be a first mover or follower ?
Explain each of them

Answer 3

Technology development pace and technology adaptation pace
They will give insight the success of a first mover in a certain industry according to past innovations