Discussion Questions November 6, 2012 POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: Dept. of Industrial & Management Engineering POSTECH

2 Discussion Questions ■Chapter 8. Collaboration Strategies 1.What are some of the advantages and disadvantages of collaborating on a development project? –Advantages of collaboration Opportunity to share the costs and risks of development Opportunity to access and possibly develop skills and resources not available in house Increased flexibility because of reduced need to commit assets to a particular project Possibility of establishing a shared standard –Disadvantages Possibility of exposing proprietary knowledge Potential loss of control over development Need to share rewards Loss of possible opportunities to develop skills and resources that may prove useful in future projects

3 Discussion Questions ■Chapter 8. Collaboration Strategies 2.How does the mode of collaborating (e.g., strategic alliance, joint venture, licensing, outsourcing, collective research organization) influence the success of a collaboration? –Each mode of collaboration carries its own set of tradeoffs  Speed, cost, control, potential for leveraging existing competencies, developing new competencies, or accessing another firm’s competencies –If success of the project requires being a first or early mover  Speed may be a critical factor  Modes that reduce speed are likely to improve the project’s success –If the project is particularly large or risky  Modes that enable cost and risk sharing will prove particularly valuable –Many technological innovations are complex and require more competencies than any individual firm possesses; in such instances modes that enable each firm to access from each other’s competencies will improve the project’s likelihood of success