Presentation on theme: "“Managing Innovation: Integrating Technological, Market and Organizational Change” Chapter 5: “Paths: Exploiting Technological Trajectories” Joe Tidd."— Presentation transcript:
1 “Managing Innovation: Integrating Technological, Market and Organizational Change” Chapter 5: “Paths: Exploiting Technological Trajectories”Joe TiddJohn BessantKeith PavitSecond Edition(2001), John Wiley & Sons Ltd.Students: Carlos NevesRui Carvalho
2 Not an option Not an option Technological TrajectoryNot an optionTechnological KnowledgeFirms PathNowFutureFirms CompetenceIncremental LearningPath dependantKnowledge accumulated thr. experienceNot an option
3 Innovating Firms – Characteristics Size: Big or SmallType of product: price sensitive vs performance sensitiveObjectives: product or processSources: Suppliers, customers, in-house & basic researchLocus: labs, design offices, production engineeringSectoral Differences!Technological Trajectories (Sectors and Firms)DANGER: All firms and sectors are different = no generalization!Generalize based on one firm = misleading conclusions!
4 Pavvits’ Taxonomy Five Major Technological Trajectories (Sectors) Supplier DominatedScale Intensive FirmsScience BasedInformation IntensiveSpecialized SuppliersWhat differs in each trajectory…… sources of technology… innovation strategy… typical core products
5 Domíniodo fornecedorEscala--intensivasSuportadasna ciênciaInformaçãoFornecedoresespecializadosProdutos chave típicos• Agricultura• Serviços• Produção Tradicional• Matérias primas• Bens de consumo duradouros• Automóvel• Engenharia Civil• Electrónica• Química• Finanças• Retalho• Edição• Viagens• Equipamento• Instrumentação• SoftwarePrincipais fontes de tecnologia• Fornecedores• Aprendizagem de produção• Engenharia de produção• Gabinetes de Design• I&D• Investigaçãofundamental• Departamentode software esistemas• Concepção• UtilizadoresavançadosPrincipais tarefas da estratégia de inovação1. Posição1. Baseada emvantagens nãotecnológicas1. Eficácia do custo e segurança dos produtos e processos complexos1. Desenvolv. técnico de produtos relacionados1. Novos produtos e serviços1. Monitorização e resposta às necessidades dos clientes2. Trajectória2 .Utilização das Tl nas finanças e na distribuição2. Integração incremental do novo conhecimento (ex, protótipos virtuais, novos materiais)2. Exploração da ciência básica (ex. biologia molecular)2. Concepção e operação de sistemas complexos de processamento de informação2.Compatibilizacao das mudanças tecnológicas às necessidades dos clientes3. Processos3. Flexibilidade de resposta aos clientes3. Divulgação das melhores praticas de concepção, produção e distribuição3. Obtenção deacções complementares. Redefinição de fronteiras das divisões3. Adequar as oportunidades baseadas nas Tl com necessidades dos clientes3. Fortes elos de ligação com os clientes avançados
6 Revolutionary Technologies - Biotechnology BiologyBiochemistryGeneticsMicrobiologyBiochemical engineering and separation processingDiscovery of the structure of the DNAR&D programmes of companies in the pharmaceutical and agro-food sectorsFood processing, drinks and detergentsTextiles, leather, paper and pulp, oil refining, metals and mining, printing, environmental services, and speciality chemicals.
7 Revolutionary Technologies – Advanced Materials Materials for information and communication, for aerospace, for ground transportation and energy utilization; advanced metals, polymers and ceramics.
8 Revolutionary Technologies – Information Technology Microelectronics revolution, software technology, Internet.Three features of the IT revolution:1- Digitalisation and interconnection of previously separate activities: home electronics, logistics, sales and distribution in retailing, management information systems;2- Decreasing cost of product development through the use of simulations and virtual prototypes;3- Growing importance of software technology in distribution activities.
9 Developing Firms-specific Competencies Hamel and Prahalad on Competencies1-The sustainable competitive advantage of firms resides not in their product but in their core competencies;2-They use the metaphor of the tree;3-Associated organizational competencies;4-Core competencies require focus;5-Not only as a collection of strategic business units, but as bundles of competencies that don’t necessarily fit tidily in one business unit;6-The development of a firm’s competencies depend on its strategy architecture; example of core competencies of Canon (1950-precision mechanics, 1964-electronic calculator; 1965-electrofax copier; 1968-paper copier technology; fine optics and microelectronics).
10 CORE COMPETENCIES TREE METAPHOR END PRODUCTS BUSINESS UNITS CORE
11 Japanese Automobile Companies Heavyweight Product Managers and Fat Product DesignsOverlaping problem solving among the engineering and manufacturing functions, leading to shorter model changes cycle;Small teams with broad task assignments, leading to high development productivity and shorter lead times;Using a heavyweight product manager with extensive project influence;In 1990’s these features has been emulated by US automobile companies, and the gap had disappeared;Another reason for the lost of the Japanese competitive edge – “fat products designs”, an excess in product variety, speed of model change and unnecessary options
12 Developing and Sustaining Competencies Technological competencies bypasses two central tasks of corporate technology strategy:1 – identifying and developing the range of disciplines or fields that must be combined into a functioning technology;2 – identifying and explore the new competencies that must be added if the functional capability isn’t to become obsolete.Richard Hall ModelCore competenciesIntangible assets(intellectual property rights and reputation)Intangible competencies (skills and know-how of employees, suppliers and distributors, and the collective attributes)Most significant are:company reputation andemployee know-how,which may be a functionof organizational culture (values and beliefs)
13 Learning About Opto-Eelctronics in Japanese Companies Kumiko MiyazakiTracing the development and exploitation of opto-electronics technologies in Japanese firms;By examining the types of papers related to semiconductors lasers over a 13 years period, it was found that in most firms there was a decrease in experimental type papers accompanied by a rise in papers marking “new developments” or “practical applications”;The competence building is a cumulative and long process resulting from trial and error and experimentation, which may eventually lead to fruitful outcomes;Firms search over a broad range in basic and applied research and a narrower range in technological development;The early phases of competence building, firms explore a broad range of technical possibilities, since they are not sure how the technology might be useful for them.
14 Categories of Innovating Small Firms SuperstarsNTBF’sSpecializedSuppliersSupplier-DominatedExamplesPolaroid, Xerox, Microsoft, Compaq, Sony, Casio, BennetonStart-ups in electronics, biotechnology and softwareProducer goods(machines, components, software)Traditional products(textiles, wood, food) and many servicesSources of competitive advantageSuccessful exploitation of major invention or technological trajectoriesProduct or process development in fast-moving and specialized areaPrivatizing academic researchCombining technologies to meet users needsIntegration and adaptation of innovations by suppliersMain tasks of innovation strategyPreparing replacements for original inventionSuperstar or specialized supplier?Knowledge or moneyLinks to advanced users and pervasive technologiesExploiting new IT-based opportunities in design, distribution and coordination