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Strategic Pacing and the Progress Trap of Innovations Pratim Datta Kent State University.

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Presentation on theme: "Strategic Pacing and the Progress Trap of Innovations Pratim Datta Kent State University."— Presentation transcript:

1 Strategic Pacing and the Progress Trap of Innovations Pratim Datta Kent State University

2 Agenda Motivation Theoretical Background The Strategic Pacing Model Hypothesis Development Contributions and Future Research Conclusion

3 Motivation Progress Trap of Innovation defined as the opportunity costs of relinquishing opportunities from maintaining QoS for existing innovations for innovation intensity. “Too much of a good thing”- Barnett and Freeman (2001)- There are limits to how much innovation a customer can absorb over time (Tony Scott, CIO, Disney) Overshooting: the 37 th button on your remote (Anthony 2008) Inward vs. Outward facing- rigidity in productive rather than service and quality efficiencies Not a prescription for not innovating- rather, a need for strategic pacing of innovation efforts Two different trajectories- adoption vs. invention

4 Theoretical Underpinnings Value Theory: –The tension between donor-type value and receiver-type value: cost vs. instrumental benefits –If donor type value – receiver type value ≤ 0, exchange value = 0 Production Frontier Model –Opportunity Costs: given fixed resource set, optimizing allocations between one more innovation and more service for existing innovations –Allocative efficiencies

5 Production Frontier & Allocative Efficiencies Service Focus for existing innovations Innovation Portfolio B = S > I A = I > S

6 Adoption Returns vs. Innovation Intensity (II) Time Innovation Intensity (II) Areas of sustaining returns (II) Adoption Returns (II)

7 Initial PTI Model Progress Trap of Innovations (PTI) -Execution Shortfall -Channel Conflict -Cannibalization -User Engagement (Shelf Life) -Tech. Specificity (Competence rigidity) -Inventory Discounting Strategic Pacing -Time between Innovations -Diversity of Innovations (product line x product width) -Quality (incremental vs. radical) Technology Innovation Portfolio -Idiocentric -Allocentric

8 Framework and Propositions Progress Trap of Innovation: –The degree to which innovation intensity outperforms innovation servicing (forgoing budget dollars from service to R&D). Type of Technology Innovation Strategy –Idiocentric: Innovations with a standalone focus- unrealted diversification of innovation portfolio –Allocentric: Innovations with a collective focus- related diversification of innovation portfolio –P1: Firms with a high allocentric innovation portfolio are less likely to fall in the PTI than firms with a high idiocentric portfolio

9 Framework and Propositions Strategic Pacing: –Time between Innovations –Quality of delivery and deployment –P2: Strategic pacing will positively dampen (diminish) PTI; the dampening effect will be higher for firms with a larger idiocentric innovation portfolio than for firms with a higher idiocentric portfolio. Progress Trap of Innovations (PTI) –Execution Shortfall –Channel Conflict –Cannibalization –User Engagement (Shelf Life) –Tech. Specificity (Competence rigidity) –Inventory Discounting

10 Contributions Contribution: –Is there an optimal innovation portfolio and intensity that firms can follow? –TTM over QoS –Understanding the need for pacing innovations – absorptive capacity –The 37 th button or a new remote Future Research Direction: –Case-based reasoning –Scenario Analysis


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