Technology Strategy Flashcards
Component
term, function, interaction
Part of a physical product
- performs functions necessary for the overall performance of the product.
- interact with each other through an interface without visible design rules
Dominant Design:
Elements
Product Architecture
A dominant design is based on both:
- set of core design concepts
* regarding the major functions performed by the product
* that are embodied in components - product architecture that defines the ways in which these components are integrated.
Industry Architecture:
Definition and Types
Definition:
- The nature and degree of specialization of participants in the end-to-end industry value chain/value network (“organizational boundaries”)
- structure of the relationships between the industry participants
–> consequence of Product Architecture
- Vertical Industry Architecture: vertical integration required (since no VDR)
- Horizontal Industry Architecture: modular products enable de-integration of industry and specialized firms
Dominant Design Dynamic:
Prediction
General predictions of DDD:
- course of emergence of a dominant design
- shift of competition from product innovation to process innovation
Industry De-Integration
Product / Industry Architecture
- Shift from vertical industry architecture to horizontal architecture.
- Occurs as a consequence of change from integrated to modular product architecture
- e.g. computer industry 1960-2000 (IBM to multiplayer market)
Innovation Types
Modularization and Industry Evolution
- Dominant Product Architecture: Original product innovation process requires an integrated architecture –> optimal configuration is determined
- Modularization (on product level): focus shifts to increase scale and efficiency –> incremental innovation at component level –> development of VDR
- Industry De-Integration: VDR enables development of markets for modules
core design concept
- type of component (technology) used
- to produce a desired functionality
Module
Definition and Consequence
Part of a physical product
- that can be connected with other modules
- through an interface with visible design rules
Consequence
- development of modules can occur independently
What does the Product Architecture determine?
A product architecture determines
- type of components to use for necessary functionalities (the core design concepts)
- configuration of components into a larger system (final product)
Product Architecture: Types
Product Architecture/Modularity
Types
- Integrated Architecture –> optimize system performance (PC)
- Modular Architecture –> optimize flexibility (Apple)
Product Innovation:
Emergence of a Dominant Design
- Product Innovation: experimentation with core design concepts and product architecture
- Emergence of dominant design
- Process innovation: improvement at component level
Visible Design Rules
term, elements
Topic: Modularity
Set of rules
- that determine the conditions for two modules to connect
- e.g. design specifications, or protocols
Elements of VDR:
- Architecture: determine function of modules
- Interface: determine connection, communication
- Standards: determine module’s conformity to rules
Modularity:
Benefits
- Scale economies: modules as commodities (due to standardization of interfaces)
- I_ncremental innovation_ at component level (no coordination required with components of other modules)
- Higher product variety: individualize configuration of product with higher levels of modularity
Modularity:
Tradeoff
Modularity constrains innovation at level of product architecture
–> producers of modules, components rely on constant product architecture
This is why innovative product architecture has to start with an integrated architecture (see Dreamliner failure)
