O'connor (2008)

Question 1

Systems theory

Answer 1

complex of elements in mutual interaction, dependent not only on conditions within itself, but also the greater or lesser within the whole of which it is a part. “The whole is greater than the sum of its parts”

Question 2

Dynamic capabilities theory

Answer 2

Capabilities are the business processes needed to configure assets in advantageous ways. Dynamic capabilities emphasizes the role of strategic management in adapting, integrating, and reconfiguring assets to match changing environment requirements.

Question 3

Major innovation dynamic capabilities:

Answer 3

1. A clearly identified organizational structure:
2. Internal and external interface mechanisms:
3. Exploratory processes
4. Requisite skills
5. Appropriate governance and decision-making mechanisms and criteria
6. Appropriate metrics
7. Cultural and leadership context

Question 4

MI DC1 A clearly identified organizational structure:

Answer 4

A separate group (to ensure capabilities can grow) of the firm that is charged with making MI happen. This group ensures constant attention and accumulation of experience.

Question 5

MI DC2 Internal and external interface mechanisms

Answer 5

• MI system role should be communicated throughout the entire organization
• MI system objectives should be tightly and mutually coupled to firms strategic intent
• MI system should be loosely coupled with main organization in terms of resources, networks and business units
• MI system’s project management should be decoupled from those of main system

Question 6

MI DC3 Exploratory processes

Answer 6

Learning oriented, exploratory processes should be utilized for managing project progress

Question 7

MI DC4 Requisite skills

Answer 7

It is important to pay attention to identification and nurturing of appropriate skills and talent

Question 8

MI DC5 Appropriate governance and decision-making mechanisms and criteria

Answer 8

• A specific unique mechanism for considering and governing the portfolio of MI venture is required (ensure portfolio diversification to hedge against risk)
• Governance over specific projects within the portfolio
  o Requires an options mentality to project evaluation, with an allowance for reconsideration of expired options
  o Requires a mechanism for governing or overseeing each project in the portfolio with project-specific expertise
• Requires a mechanism for constant reflection and reconfiguration

Question 9

MI DC6 6. Appropriate metrics

Answer 9

true

Question 10

MI DC7 Cultural and leadership context

Answer 10

Requires an organizational environment whose leadership and culture recognize the importance of the MI system. Shown through investment in strategic thinking, a vision of the firms competency objectives, investment in tech and human capital to built and exploit those capabilities.

Question 11

Four requirements must be met to prove that these seven MI elements comprise a system rather than a simple list:

Answer 11

1. the system must be identifiable and its elements interdependent, such that a change in one affects the others.
2. the set of elements must combine to yield a whole that is greater than the sum of its parts.
3. to be a living, open system, it must have a mechanism for interacting with the larger environment that is self regulating and seeks homeostasis (shifting equilibrium that helps the system align with its environment)
4. the MI system must play a unique role in the larger system. It must be shown that the seven elements listed herein fulfill these requirements.

Question 12

Key Message

Answer 12

Major innovation (radical and really new) is an important growth mechanism, but it is poorly managed in most firms. This study offers a framework for building MI capabilities.