Strategic Innovation
Lecture 1
Strategy is about choosing in which direction you want to take. The degree to which a
product is a function of how different it is from prior work and the audience prior
experiences.
Innovation is the implementation of new idea into some new device or process to add value
in people’s lives.
It’s the process of turning ideas into reality and capture value from them.
Innovation=theoretical conception + technical invention + commercial exploitation
Assessment of variables for computerisation
Which variables have to be taken into account to assess which in-person-jobs will be replaced
by technology
- Social intelligence
- Creativity openness to new experience and motivation
- Perception and manipulation
Innovation has impact on daily lives, employment, success of companies
Define technology:
- A mean to fulfil a human purpose: device, process
- Consist of multiple components linked together
- Exploits phenomena to fulfil its purpose
a technology is a phenomenon captured and put to use
Sources of Innovation
- Inventors eg: Thomas Edison innovation is taking a scientific discovery and apply
it in a certain use for a certain purpose
- Users: customers even if usually they struggle to look beyond what they already have
solution: functional fixedness people tend to attach a certain function to a
certain object. People can turn the use of the same object by thinking outside
the box
incremental innovations from feedback, “me too products” (eg: jet-sky
company that asked customers what they want to achieve)
solution: focus on outcomes or observe
- Firms who hire engineers and developers to conduct R&D (research and
development)
basic research to understand certain phenomena
applied research to research with a primary purpose
development from knowledge to product (devices, materials or processes)
Absorptive capacity: The ability of an organization to recognize, assimilate, and
utilize new knowledge.
- Universities and government-funded research
, - Private non-profit organisations: These organizations both perform their own R&D
and fund R&D conducted by others.
Technology clusters def: Regional clusters of firms that have a connection to a common
technology, and may engage in buyer, supplier, and complementor relationships, as well as
research collaboration. facilitated by geographical proximity
Technological spillovers def: a phenomena that occurs when the benefits from R&D activities
of one firm spill over to other firms
Chapter 3
- S-curve
- Product, service and process innovation
- Modular and architectural innovation
- Incremental and radical innovation
- Sustaining and disruptive innovation
Technology s-curves
S-curve in technology performance depicts the performance improvement over the life of a
technology. As a technology begins to reach its limits and maximum level of performance,
the cost of each marginal improvement and the s-curve flattens.
The graph relates with speed, power or capacity ( performance) against time
Technology do not always get the opportunity to reach their limits as they become obsolete
by new discontinuous technologies
,S-curve in technology diffusion are obtained by calculating the cumulative number of
adopters against time
Managers can use the s-curve model as a tool for predicting when a technology will reach its
limits and as a prescriptive guide for whether and when the firm should move to a new,
more radical technology
Technology cycle
The s-curve model suggests that technological change is cyclical.
There are 2 ways to describe the technology life cycle:
1. Fluid phase: uncertainty about both technology and its market. It’s a period of
turbulence and experimentation where different designs are proposed
radical product innovation
2. Transitional phase: standardization of design and e
emergence of process innovation
3. Specific phase: a dominant design emerges and establishes architecture for the
technology. It’s a period of rapid improvement and lowering costs.
incremental innovation
, 1. Era of ferment Discontinuity offer breakthrough capabilities (different designs)
and there is little agreement about what the major subsystems of the technology
should be or how they should be dominant focus its efforts.
2. Next, one of these designs is selected and become dominant
3. Era of Incremental Change all the engineers focus on trying to improve that single
dominant design
4. creative destruction: the emergence of a new technological discontinuity
As firms’ routines and capabilities become more and more wedded to the dominant
architecture, the firms become less able to identify and respond to a major architectural
innovation.
Technology trajectories
“the path a technology takes through time”
- Re-use of components
o Example: qwerty keyboard. The digital keyboards are inspired by the physical
keyboards because we are already familiar with this keyboard as we invested
lot of time to learn its use. It would also costs a lot to manufactures to
change the keyboards of existing technologies
- Recombination of components
o By recombining existing component, we can build new technologies.
Example: the chicken incubator inspired the creation of the human incubator.
- Novel components
o Using completely new components to existing products. Example: using qbits
into quantum computing
Adoption S-curves
Adoption s-curves are not the same as technology S-curves!!!
- Adoption S-curves are about cumulative market penetration or sales, so the extent
to which a certain group adopts a certain innovation
- Technology S-curves are about performance improvement of technology, so the
effort invested in developing a certain innovation
Types of innovation
Product, service and process innovation
Process innovation def: (the way things work) innovations in the way an organisation
conducts its business (production techniques, services, marketing goods etc..) to improve
the effectiveness or efficiency of production.
Eg: developing a specific algorithm that can quickly target inappropriate content
instead of relying on individual/manual selection
Eg: the use of the led-light by the horticulturists
Product innovation def: (the output of a firm) development of innovative products.
Eg: developing a led-light for horticulturists
Lecture 1
Strategy is about choosing in which direction you want to take. The degree to which a
product is a function of how different it is from prior work and the audience prior
experiences.
Innovation is the implementation of new idea into some new device or process to add value
in people’s lives.
It’s the process of turning ideas into reality and capture value from them.
Innovation=theoretical conception + technical invention + commercial exploitation
Assessment of variables for computerisation
Which variables have to be taken into account to assess which in-person-jobs will be replaced
by technology
- Social intelligence
- Creativity openness to new experience and motivation
- Perception and manipulation
Innovation has impact on daily lives, employment, success of companies
Define technology:
- A mean to fulfil a human purpose: device, process
- Consist of multiple components linked together
- Exploits phenomena to fulfil its purpose
a technology is a phenomenon captured and put to use
Sources of Innovation
- Inventors eg: Thomas Edison innovation is taking a scientific discovery and apply
it in a certain use for a certain purpose
- Users: customers even if usually they struggle to look beyond what they already have
solution: functional fixedness people tend to attach a certain function to a
certain object. People can turn the use of the same object by thinking outside
the box
incremental innovations from feedback, “me too products” (eg: jet-sky
company that asked customers what they want to achieve)
solution: focus on outcomes or observe
- Firms who hire engineers and developers to conduct R&D (research and
development)
basic research to understand certain phenomena
applied research to research with a primary purpose
development from knowledge to product (devices, materials or processes)
Absorptive capacity: The ability of an organization to recognize, assimilate, and
utilize new knowledge.
- Universities and government-funded research
, - Private non-profit organisations: These organizations both perform their own R&D
and fund R&D conducted by others.
Technology clusters def: Regional clusters of firms that have a connection to a common
technology, and may engage in buyer, supplier, and complementor relationships, as well as
research collaboration. facilitated by geographical proximity
Technological spillovers def: a phenomena that occurs when the benefits from R&D activities
of one firm spill over to other firms
Chapter 3
- S-curve
- Product, service and process innovation
- Modular and architectural innovation
- Incremental and radical innovation
- Sustaining and disruptive innovation
Technology s-curves
S-curve in technology performance depicts the performance improvement over the life of a
technology. As a technology begins to reach its limits and maximum level of performance,
the cost of each marginal improvement and the s-curve flattens.
The graph relates with speed, power or capacity ( performance) against time
Technology do not always get the opportunity to reach their limits as they become obsolete
by new discontinuous technologies
,S-curve in technology diffusion are obtained by calculating the cumulative number of
adopters against time
Managers can use the s-curve model as a tool for predicting when a technology will reach its
limits and as a prescriptive guide for whether and when the firm should move to a new,
more radical technology
Technology cycle
The s-curve model suggests that technological change is cyclical.
There are 2 ways to describe the technology life cycle:
1. Fluid phase: uncertainty about both technology and its market. It’s a period of
turbulence and experimentation where different designs are proposed
radical product innovation
2. Transitional phase: standardization of design and e
emergence of process innovation
3. Specific phase: a dominant design emerges and establishes architecture for the
technology. It’s a period of rapid improvement and lowering costs.
incremental innovation
, 1. Era of ferment Discontinuity offer breakthrough capabilities (different designs)
and there is little agreement about what the major subsystems of the technology
should be or how they should be dominant focus its efforts.
2. Next, one of these designs is selected and become dominant
3. Era of Incremental Change all the engineers focus on trying to improve that single
dominant design
4. creative destruction: the emergence of a new technological discontinuity
As firms’ routines and capabilities become more and more wedded to the dominant
architecture, the firms become less able to identify and respond to a major architectural
innovation.
Technology trajectories
“the path a technology takes through time”
- Re-use of components
o Example: qwerty keyboard. The digital keyboards are inspired by the physical
keyboards because we are already familiar with this keyboard as we invested
lot of time to learn its use. It would also costs a lot to manufactures to
change the keyboards of existing technologies
- Recombination of components
o By recombining existing component, we can build new technologies.
Example: the chicken incubator inspired the creation of the human incubator.
- Novel components
o Using completely new components to existing products. Example: using qbits
into quantum computing
Adoption S-curves
Adoption s-curves are not the same as technology S-curves!!!
- Adoption S-curves are about cumulative market penetration or sales, so the extent
to which a certain group adopts a certain innovation
- Technology S-curves are about performance improvement of technology, so the
effort invested in developing a certain innovation
Types of innovation
Product, service and process innovation
Process innovation def: (the way things work) innovations in the way an organisation
conducts its business (production techniques, services, marketing goods etc..) to improve
the effectiveness or efficiency of production.
Eg: developing a specific algorithm that can quickly target inappropriate content
instead of relying on individual/manual selection
Eg: the use of the led-light by the horticulturists
Product innovation def: (the output of a firm) development of innovative products.
Eg: developing a led-light for horticulturists
