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“Managing Innovation: Integrating Technological, Market and Organizational Change” Chapter 5: “Paths: Exploiting Technological Trajectories” Joe Tidd.

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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 Tidd John Bessant Keith Pavit Second Edition(2001), John Wiley & Sons Ltd. Students: Carlos Neves Rui Carvalho

2 Not an option Not an option
Technological Trajectory Not an option Technological Knowledge Firms Path Now Future Firms Competence Incremental Learning Path dependant Knowledge accumulated thr. experience Not an option

3 Innovating Firms – Characteristics
Size: Big or Small Type of product: price sensitive vs performance sensitive Objectives: product or process Sources: Suppliers, customers, in-house & basic research Locus: labs, design offices, production engineering Sectoral 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 Dominated Scale Intensive Firms Science Based Information Intensive Specialized Suppliers What differs in each trajectory… … sources of technology … innovation strategy … typical core products

5 Domínio do fornecedor Escala- -intensivas Suportadas na ciência Informação Fornecedores especializados Produtos chave típicos • Agricultura • Serviços • Produção Tradicional • Matérias primas • Bens de consumo duradouros • Automóvel • Engenharia Civil • Electrónica • Química • Finanças • Retalho • Edição • Viagens • Equipamento • Instrumentação • Software Principais fontes de tecnologia • Fornecedores • Aprendizagem de produção • Engenharia de produção • Gabinetes de Design • I&D • Investigação fundamental • Departamento de software e sistemas • Concepção • Utilizadores avançados Principais tarefas da estratégia de inovação 1. Posição 1. Baseada em vantagens não tecnológicas 1. Eficácia do custo e segurança dos produtos e processos complexos 1. Desenvolv. técnico de produtos relacionados 1. Novos produtos e serviços 1. Monitorização e resposta às necessidades dos clientes 2. Trajectória 2 .Utilização das Tl nas finanças e na distribuição 2. 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 informação 2.Compatibilizacao das mudanças tecnológicas às necessidades dos clientes 3. Processos 3. Flexibilidade de resposta aos clientes 3. Divulgação das melhores praticas de concepção, produção e distribuição 3. Obtenção de acções complementares. Redefinição de fronteiras das divisões 3. Adequar as oportunidades baseadas nas Tl com necessidades dos clientes 3. Fortes elos de ligação com os clientes avançados

6 Revolutionary Technologies - Biotechnology
Biology Biochemistry Genetics Microbiology Biochemical engineering and separation processing Discovery of the structure of the DNA R&D programmes of companies in the pharmaceutical and agro-food sectors Food processing, drinks and detergents Textiles, 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 Competencies 1-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).


11 Japanese Automobile Companies
Heavyweight Product Managers and Fat Product Designs Overlaping 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 Model Core competencies Intangible 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 and employee know-how, which may be a function of organizational culture (values and beliefs)

13 Learning About Opto-Eelctronics in Japanese Companies
Kumiko Miyazaki Tracing 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
Superstars NTBF’s Specialized Suppliers Supplier-Dominated Examples Polaroid, Xerox, Microsoft, Compaq, Sony, Casio, Benneton Start-ups in electronics, biotechnology and software Producer goods(machines, components, software) Traditional products(textiles, wood, food) and many services Sources of competitive advantage Successful exploitation of major invention or technological trajectories Product or process development in fast-moving and specialized area Privatizing academic research Combining technologies to meet users needs Integration and adaptation of innovations by suppliers Main tasks of innovation strategy Preparing replacements for original invention Superstar or specialized supplier? Knowledge or money Links to advanced users and pervasive technologies Exploiting new IT-based opportunities in design, distribution and coordination

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