Strategic Innovation Management Flashcards
Strategic Innovation-management
1 Specification of technology, product, processes and timing strategy (Innovation Strategy);
- Specification of R&D program;
- Specification of provision of technology and technics;
Innovation Strategy and its elements
Technology strategy- Recognition of technology trends through: Employees, suppliers, research institutions, patents, journal articles.
employees, customers(e.g. lead users), discrepancy relative to competition (cost-benefit analysis, competitive analysis), new legal framework.
Product Strategy
Process Strategy
Timing Strategy
S-Curve concept of Technology Development
Shows the concept of life cycle.
Y - Performance of technology;
X- Cumulated R&D efforts;
When the curve ends - change of technology is hapenning and new curve is on.
Example: Cassette to CD; Wet to digital photography; Tube screens to flat screens; Video to DVD;
Initiation of technology Development
Early detection through internal and external sources:
- Employees;
- Suppliers;
- Research institutions;
- Scientific journals;
Technology Portfolio
Helps to decide, how to choose among different technologies
Cost-benefit analysis
X-Price;
Y- Customer benefit;
the straight line with dots around it
Competitive analysis
The table: —,–,-,0,+,++,+++
Show the Key buying factors and mark on the graph. The Deviance shows the difference.
5 Strategic Options
- Product elimination (clean up the portfolio)
- Product continuation - still sufficient
- Product variation - small changes, functions remain the same, but minor changes to ecstatics, etc.
- Product differentiation - major function remain similar, a new model for a car manufacturer (Porsche Panamero).
- Product diversification - basic function is the same, technologies are different.
Process strategy
Results from technology and product strategies;
- If the focus is new technologies - they lead to process innovation if they also result in cost reduction;
- If company concentrates on new products, it will lead to process innovation if it necessary to produce new product;
Timing Innovation
- Invention (hasnt been launched yet) - First inventors (patents). Ex: Philipps’ VCR
- Market entry:
- Pioneers (Sony Betamax)
- Early followers (Panasonic VHS)
- Late followers (Mitsubishi, RCA, Phillips, Fisher) - Market exit
Product Life Cycle Model
y: Sales, total contribution margin;
x: Time;
Introduction, Growth, Maturity, Saturation, Degeneration
Diffusion curve
Looks like a hat
Customer groups: Innovators, Early Adopters, Early majority, Late majority, Laggards.
- connected with Marketing Mix
Specification of R&D program
Periodically (every half a year-year), happens when companied decide whether to start new R&D programs, or continue with the same one.
Evaluation Criteria of R&D Projects
- R&D - Risks, Available R&D know-how, development time, patent situation, required and available capacities for R&D
- Production criteria - Available production know-how, required and available capacities
- Marketing criteria - Relatedness to the existing range, Industry structure and development, required and available salesforce.
- Financial criteria - required investment, revenues, Return on Investment (RoI), Amortisation, Federal subsidies
Specification of provision of technology and technics
Which resources are required to follow through the Innovation strategy
Alternatives of the Provision of Technology and Technics
- Provision of new technology and technics (-Autonomous R&D, Contract R&D, R&D coops)
- Provision of existing technology and technics:
- Unsecured technology and technics (Literature and informal contacts, Analysis of competition, Hiring competitors employees)
- Secured technology and technics (Listening, Buying trade mark rights, buying companies)
