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INNOVATION AXES Market ProductProduct Technology Manufacturing Technology (Process)

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Presentation on theme: "INNOVATION AXES Market ProductProduct Technology Manufacturing Technology (Process)"— Presentation transcript:

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2 INNOVATION AXES Market ProductProduct Technology Manufacturing Technology (Process)

3 MEDINOL

4 Market ProductProduct Technology Manufacturing Technology Market Driven Innovation

5 Picture 8.2: Second Generation Picture 8.1: First Generation Picture 8.3: Third Generation Generations of Products

6 Water Saving PHASE I Water Saving Drippers Drip Technology Market Driven Innovation Manufacturing Technology

7 Water Saving PHASE II Water Saving Drippers Drip Technology Product Driven Innovation Manufacturing Technology

8 Growth Control Drip, Liquid Fertilizers Polymer, Control Technologies Feeding System Market Driven Innovation PHASE III Manufacturing Technology

9 Market ProductProduct Technology Manufacturing Technology Technology Driven Innovation Product Driven Innovation

10 Fixion ™ IM (Intramedullary) Nail Fixion ™ IL (Interlocking) Nail DISC O TECH

11 THE B-TWIN EXPANDABLE SPINAL SYSTEM B-Twin Expanded Configuration (up to 15 mm diameter) Post-Operative (after expansion) Anterior-Posterior View B-Twin Reduced Configuration (5 mm diameter) DISC O TECH

12 Market Driven Innovation Corning Glass Fiber optics Apple IBM PC 3 M Post it Seagate-Conner 3.5 HDD Product Driven Innovation Sony-Philips Compact Disk Nike : Tc: nylon, Tn: Max Air, Max chock Technology Driven Innovation Raytheon Microwave Laser, Bell Labs Manufacturing Driven Innovation IKEA – LACK table and Honeycomb, Ogla and gas

13 WHY CONTINUOUS/DISCONTINUOUS INNOVATION? Continuous Innovation Existing infrastructures Existing knowledge Existing markets Incremental Convergent thinking- progressive refinements Increasing specialization Discontinuous Innovation Discovery of new knowledge related to market need or technological capabilities From horse to car Business reshaping: kerosene for lighting; ice for cooling; IT+telecom and airline, banking, entertainment

14 PRINCIPLES OF DISRUPTIVE TECHNOLOGY Good Management is the reason that companies fail because they listened to customers wants and needs, invested in technology to support customers and subsequently lost market leadership (Christensen,1997) Companies depend on customers and investors. Small market don’t solve problems of large firms. Market that don\t exist cannot be analyzed Technology supply may not equal market demand Disruptive technologies are lower performing Companies overshoot their market with technology IBM survived the move to PC’s More experienced firms made better decisions

15 SOURCES OF DISCONTINUITY PC, Mobile phoneNew market Photo and digital imagesNew technology Free trade, CommunismNew political rules KodakRunning out of road Apple, McDonaldsChange in market-behavior Telecom, airlinesDeregulation Amazon, cell phoneRules of the game change Photo-lithography in chipArchitectural innovation

16 CELL PHONES FORECASTING FOR AT&T Cell phone quantity 1984 1994 2000 Time 17 Millions 900,000

17 R&D GENERATIONS 1 st Generation : Unbounded search for scientific breakthrough Leap from current to new knowledge Breakthrough inventions 2nd Generation Applicability Project management Fusion innovations

18 R&D GENERATIONS 3th R&D Generation Marketing role: determine customer needs R&D role: supplies technology Continuous innovation: experience, expectations walls Fig. 1.7 4th R&D Generation Mutually dependent learning Market evolution: Competitive architecture Broader mission for R&D Organizational capability Fusion & Discontinuous Innovation: beyond the walls. Fig. 1.8, 1.9, 1.10

19 3 rd GENERATION & CONTINUOUS INNOVATION Market Knowledge Scientific & Technical Knowledge Wall of Experience Wall of Expectations Continuous Innovation Pc, Mc, Tc

20 DISCONTINUOUS INNOVATION Market Knowledge Scientific & Technical Knowledge Wall of Experience Wall of Expectations McTn Mn Tn Mn, Tc Pc Tc Mc

21 FUSION INNOVATION Market Knowledge Scientific & Technical Knowledge Wall of Experience Wall of Expectations Market Fusion Technology Fusion Market & Technology Fusion

22 MARKET & TECHNOLOGY FUSION Market Fusion Milk + Juice Drinks Cheese + others for breakfast Printer+ Scanner+Fax for new applications Telephone + TV Cell phone + Portable Computer Technology Fusion Optics-Electronics- Microscope Fiber optic + laser Laser + Audio Composite Materials

23 Market Knowledge Scientific & Technical Knowledge Wall of Experience Wall of Expectations Target zone: new technology, latent need

24 PERFORMANCE IMPROVEMENT INDUSTRY VERSUS CUSTOMER Product performance Time Low-end markets High-end markets Disruptive technology Trajectories – customer needs performance A B

25 DISCONTINUOUS INNOVATION AND BUSINESS STRATEGY Cell phone,to morrow?Nokia forest eqpt-paper Cell phone servicesVodaphone steel tubes Travel group (Thomson)Tui mining Kodak Palm

26 PC- DISRUPTIVE TECHNOLOGY

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29 EVOLUTIONARY THEORY Theory of dominant design Single basic architecture that becomes the accepted market standard (Anderson-Tushman) Punctuated Equilibrium Periods of of incremental change, punctuated by breakthrough New comers initiate competence Major tech innovations Competitive turmoil Boeing 247, 707, 747 Jolty theory of change Abrupt alterations in environments Disruptive Technology Nelson and Winter: The core concern of evolutionary theory is with the dynamic process by which firm behavior patterns and market outcomes are jointly determined over time Source: Ettlie J.E.(2006) Managing Innovation Elsevier p 70-84

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32 Source: Tidd J. Bessant J. Pavitt K.(2006) Managing Innovation, John Wiley and Sons p 173

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34 THE CORE COMPETENCE OF THE CORPORATION CK Perahalad G/ Hamel COMPETENCIES CORE PRODUCTS BUSINESS UNITS END PRODUCTS

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37 INNOVATION STRATEGIES Miles & Snow(78) Defenders, Prospectors, Analyzers Freeman(82) Offensive, Defensive, Imitative, Dependent, Traditional Opportunistic Ettlie and Bridges(87) Aggressive technology policy Long term investment in technological solution Planning human resources for it Openness the environment Structural adaptation Kerin et al (92) First movers Ettlie J.E.(2006) Managing Innovation Elsevier p 111-114

38 THE AGGREGATE PROJECT PLANNING FRAMEWORK Radical Technology change Next generation Improvement Base New market New Customer More sales Replace current product Breakthrough Platform Derivative Product support Impact on Market

39 LINEAR MODELS OF INNOVATION Science and Technological Needs of the Technology Developments Market R&D Manufacturing Marketing Market Technology Push Starting Point

40 Market(ing) ? Pull Market Scientific Knowledge Technology Concept Product Development Production Starting Point

41 MP: New market services and goods that seek new technology TP: New ideas in technology that seek applications MARKETING PULL-TECHNOLOGY PUSH System Technology Map: Robot Technology Push Marketing Pull Manipulation & Control Automobile Sensing: Vision, Tactile Aerospace Internal Communication Electronics Environment Communication

42 TECHNOLOGY PUSH NEED PULL COMPARED Technology push Start with what easily can be researched Address the need of the atypical user Get locked into one technical solution Need Pull Looks at needs that are easily identified Continue to change the definition of the opportunity Lack a champion a true believer

43 SIMULTANEOUS COUPLING MODEL Manufacturing R&D Marketing

44 An Overview of Innovation in Landau and Rosenberg (Eds )The Positive Sum Strategy Washington DC National Academy of Sciences

45 INTERACTIVE MODEL OF INNOVATION R&DMarketing Product Manufacturing Market Knowledge Scientific & Technological Knowledge Idea Innovation Technology Push Marketing Pull Market

46 NETWORK MODEL Freeman C. (1992) Network of Innovators, a synthesis of research issues in Freeman C, The Economics of Hope London Pinter 93-120

47 R&D Finance Production Marketing Internal Environment External Environment

48 Tidd J. Bessant J Managing innovation John Wiley 2006 p 287

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50 Tidd J. Bessant J Managing innovation John Wiley 2006 p 304

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52 Tidd J. Bessant J Managing innovation John Wiley 2006 p 338

53 TECHNOLOGY POLICY AND COMPETITIVE STRATEGIES Focus segment Cost –diff DifferentiationCost leadership Design- performance Quality, features Reduce cost, efficiency Product technology change Tune production- delivery Quality, fasterEconomies of scale Process technology change Porter M.E. “The Technological Dimension of Competitive Strategy” Research on Technological Innovation Management and Policy 1 (1983) pp 1-33

54 THE INNOVATION MAP INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT M T P Tc Tn Pc Pn Mn Mc Mf Mfn Mfc The Firm/ Product

55 ` INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT M T P Tc Tn Pc Pn Mn Mc KNOWLEDGE AXES AND GATE KEEPERS Knowledge axis Gate Keeper Mfn Mfc Mf

56 PHASES IN MARKET LIFE CYCLE AND INNOVATION BASIS OF COMPETITION Early Growth Mature Sales Time Functionality Reliability Convenience Price

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59 DISK DRIVE PERFORMANCE MET MARKET NEEDS A B C 200 3000 30 10 6 74 78 80 85 90 Capacity Provided Capacity Demanded MB HDD invade to Portable Computer HDD invade to PC HDD invade to minicomputer 3.5inch 5.25inch 8 inch 14 inch Mainframe Source: Christiansen p16

60 TIME OF ADOPTION OF INNOVATION (Roberts) TECHNOLOGY ADOPTION LIFE CYCLE 2.5% 13.5% 34% 34% 16% Innovators Early Early Majority Late Majority Laggards Adopters PragmatistVisionaryConservative


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