1. Sung Joo Bae Associate Professor Operations and Technology Management
School of Business
Yonsei University
Architecture
Sung Joo Bae
Associate Professor
Operations and Technology Management

2. Technical Change Core Concepts Reinforced Overturned Incremental
Innovation
Modular
Innovation
Unchanged
Linkages between Core Concepts & Components
Architectural
Innovation
Radical
Innovation
Changed
(Henderson & Clark, 1990)
innovations that change the way in which the components of a product are linked together, while leaving the core design concepts (and thus the basic knowledge underlying the components) untouched 2

3. Transitions often challenge existing organizations severely
(Source: Henderson & Clark, 1990)

4. Inertia in Organizational Mechanisms
Filters (Cognitive Framework)
Channels (Information Flow)
Problem-Solving Strategies (Learning Trajectory)
Structures, culture, disciplined processes, control mechanism, individual knowledge?
Anything else? 4

5. Design Structure Matrix (DSM)
Source: Design rules (2000)

6. Design Parameters & Tasks
Source: Design rules (2000)

7. Possible relationships between tasks
Source: Design rules (2000)

8. Simplified TSM for IBM Laptop design
Source: Design rules (2000)

9. Modularization of IBM Laptop design
Source: Design rules (2000)

10. Taxonomy of DSM

11. Source: Design rules (2000)

12. Exercise: iPod and iTunes Store on iPhone

13. Disruptive Innovation;
Technologies that disrupt an established trajectory of performance improvement
Performance
High-End Mkt
Demand
Disruptive
Innovation
Mid-End Mkt
Demand
Low-End Mkt
Demand
Source: Christensen (1997) t 13

14. Disruptive Innovation14

15. 15

16. Inertia in Organizational Mechanisms
Resource Dependence – in this case, customers
Resource Allocation 16

17. Competence-enhancing vs. competence-destroying
Competence-destroying Innovation; Innovations which render the existing resources and capabilities of the firm obsolete
Competence-enhancing Innovation;
Innovations which are compatible with the existing resources and capabilities of the firm obsolete 17