Samenvatting IOE
Introduction – which lecture
Macro level:
Context 2
Open innovation 7
Interfirm level:
Knowledge creation 12
Knowledge workers 8 + 9
Firm level:
Types of innovation 3 + 4
Managing innovation 5 + 6
Knowledge creation 10 + 11
Lecture 2
The innovation environment, context
Firm survival: max. age of 40 average firms not as long as human beings
larger firms survived longer, economic stability, financial resources, human capital AND
innovation
What explains firm survival rates? (not strength/intelligence Darwin)
Ability to adapt and social capital
Ability to innovate!!!
Types of innovations:
1. Product innovations good/services
2. Process innovations technological/organizational
Improvement/incremental:
‘Leitmotiv’: we can always improve
Focus: management of operations (efficiency)
Dominant role of planning & control
More of the same, 1st order solutions
Source of short-term financial revenue
deze zijn nodig voor de short-term, geen garantie voor long-term survival
Renewal/radical:
‘Leitmotiv’: crisis – we have to change
Focus: management of opportunities
Focus: creativity & entrepreneurship
First change, then improve, 2nd order solutions
Something else than you are used to before
Onverwachte sprongen, die vaak niet ‘logisch’ lijken
Heeft altijd impact op de markt en bijna altijd succesvol (denk aan: Tesla, niet eerste)
Source of long-term financial costs
necessary for long-term survival
something within a company can be radical, even though in the world it is incremental
BALANCE between those two
Abernathy and Utterback (1978) – An evolutionary pattern of innovation
, Frequency/product performance
Time/engineering effort
Dikke lijn die hoog begint: product
innovation
Dikke lijn die lager begint: process
innovation
De dunnere lijn is op het begin de technology push en op het laatste de market pull (afnemers
hebben behoeftes en daar proberen mensen op in te spelen en dit leidt tot technologische
innovaties zodat er betere producten gemaakt kunnen worden) hierbij de termen product
performance en engineering effort
Fluid phase competing designs
dominant design aan het eind van de fluid phase/begin transitional phase
Dominante design heeft vaak de markt overgenomen waardoor het niet uitmaakt hoe goed
je producten innoveert maar mensen zullen toch voor het dominant design gaan, daarom vlakt
de product innovation hier af en gaat de process innovation omhoog.
Transitional phase selection dominant design
Specific phase exploitation dominant design
It’s about succesful organizations and their innovations, and how it changes when it matures
and how other companies may change themselves to foster innovation as they grow (papers)
The organizational implications:
Fluid phase frequent redefinition of tasks, limited hierarchy, high lateral communication
organic structure adaptability (high environmental uncertainty)
,Specific phase stable tasks, more hierarchy: coordination and control, top-down
communication mechanistic structure
From fluid to specific:
Structure: from informal to formal
Organizational behavior: from flexible and responsive to rigid and predictable
Power: from entrepreuneurs to managers
Orientation: form external to internal
Questions:
During the development of a new industry, where do most product innovations take place?
new firms that join new industry (established firms that join new industry vindt ook
product innovation plaats maar minder daarom was dit niet het goede antwoord)
During the development of a new industry, when is it more appropriate to focus on product
innovation?
when revenue is increasing
Tushman and Anderson (1986) – Technological discontinuities
Technology: those tools, devices, and knowledge that mediate between inputs and outputs
(process technologies) and/or that create new products or services (product technology)
Dominant design reflects the emergence of product-class standards and end of the period of
technological development. The dominant design becomes a guidepost for further product or
process change.
De toenemende technologische vooruitgang vindt plaats door de interactie van vele
organisaties die worden gestimuleerd door het vooruitzicht op economische rendement.
Product discontinuities are reflected either in process substitution, or in process innovations
that result in radical improvements in industry-specific dimensions of merit (verdienste).
Munificence: to the extent in which an environment can support growth
Bij het rondje: competence enhancing
aangezien ze dezelfde dingen ervoor
konden gebruiken om dvd’s te maken
Bij de pijl: competence destroying
omdat ze er nieuwe dingen voor nodig
hadden en er niet verder op konden
bouwen
Technological discontinuities – grote technologische verschuivingen
- Competence enhancing (discontinuities)
Large improvements in price/performance
Builds on existing knowledge
Such innovations substitute for older technologies, but do not render the skills obsolete
required to master the old technologies
, Uncertainty
Price-performance improvements, associated with increased demand and
environmental munificence
New products or new processes bv. betere prijs of technologie
As product classes mature, the underlying resource base becomes ever more limited by
physical and resource constraints.
Rich get richer: established (gevestigde) players benefit
- Competence destroying (discontinuities)
Large improvements in price/performance
Creates a new product class or substitutes for an existing product (new/vervangt)
Uncertainty
Price-performance improvements, associated with increased demand and
environmental munificence
Existing knowledge becomes obsolete (verouderd)
Entirely different knowledge and competencies
Core technology shift deze veroorzaakt grote veranderingen in verdeling van macht
en controle binnen het bedrijf
Barriers to entry are lowered, new firms betreden sneller en maken gebruik van de
nieuwe technologie
Rich get poor(er): new entrants benefit
Technological discontinuities change the competitive environment and reward those
innovative firms that are first to recognize and exploit technological opportunities
H1: technological change within a product class will be characterized by long periods of
incremental change punctuated (onderbroken) by discontinuities
H1a: technological discontinuities are either competence enhancing or competence destroying
H2: de plaats van innovatie zal verschillen voor competence destroying and competence
ehancing technological changes. Competence destroying discontinuities will be initiated by
new entrants, while competence enhancing discontinuities will be initiated by existing firms
H3: competitive uncertainty will be higher after a technological discontinuity than before the
discontinuity
H4: environmental munificence will be higher after a technological discontinuity than before
H5: competence enhancing discontinuities will be associated with decreased entry-to-exit
ratios and decreased interfirm sales variability. These patterns will be reversed for
competence destroying discontinuities partially supported
H6: Successive competence-enhancing discontinuities will be associated with smaller
increases in uncertainty and munificence
H7: Those organizations that initiate major technological innovations will have higher growth
rates than other firms in the product class
all supported (except H5: partially supported)
Conclusie
Technological change clearly affects organizational environments. These results suggest that
technology is not a static environmental resource. Rather, technology advances through the
competition between alternative technologies promoted by rivalrous organizations.
Lecture 3
Organizing for radical innovation (types of innovation)
Schoenmakers and Duysters (2010) The Technological Orgins of Radical Inventions
Introduction – which lecture
Macro level:
Context 2
Open innovation 7
Interfirm level:
Knowledge creation 12
Knowledge workers 8 + 9
Firm level:
Types of innovation 3 + 4
Managing innovation 5 + 6
Knowledge creation 10 + 11
Lecture 2
The innovation environment, context
Firm survival: max. age of 40 average firms not as long as human beings
larger firms survived longer, economic stability, financial resources, human capital AND
innovation
What explains firm survival rates? (not strength/intelligence Darwin)
Ability to adapt and social capital
Ability to innovate!!!
Types of innovations:
1. Product innovations good/services
2. Process innovations technological/organizational
Improvement/incremental:
‘Leitmotiv’: we can always improve
Focus: management of operations (efficiency)
Dominant role of planning & control
More of the same, 1st order solutions
Source of short-term financial revenue
deze zijn nodig voor de short-term, geen garantie voor long-term survival
Renewal/radical:
‘Leitmotiv’: crisis – we have to change
Focus: management of opportunities
Focus: creativity & entrepreneurship
First change, then improve, 2nd order solutions
Something else than you are used to before
Onverwachte sprongen, die vaak niet ‘logisch’ lijken
Heeft altijd impact op de markt en bijna altijd succesvol (denk aan: Tesla, niet eerste)
Source of long-term financial costs
necessary for long-term survival
something within a company can be radical, even though in the world it is incremental
BALANCE between those two
Abernathy and Utterback (1978) – An evolutionary pattern of innovation
, Frequency/product performance
Time/engineering effort
Dikke lijn die hoog begint: product
innovation
Dikke lijn die lager begint: process
innovation
De dunnere lijn is op het begin de technology push en op het laatste de market pull (afnemers
hebben behoeftes en daar proberen mensen op in te spelen en dit leidt tot technologische
innovaties zodat er betere producten gemaakt kunnen worden) hierbij de termen product
performance en engineering effort
Fluid phase competing designs
dominant design aan het eind van de fluid phase/begin transitional phase
Dominante design heeft vaak de markt overgenomen waardoor het niet uitmaakt hoe goed
je producten innoveert maar mensen zullen toch voor het dominant design gaan, daarom vlakt
de product innovation hier af en gaat de process innovation omhoog.
Transitional phase selection dominant design
Specific phase exploitation dominant design
It’s about succesful organizations and their innovations, and how it changes when it matures
and how other companies may change themselves to foster innovation as they grow (papers)
The organizational implications:
Fluid phase frequent redefinition of tasks, limited hierarchy, high lateral communication
organic structure adaptability (high environmental uncertainty)
,Specific phase stable tasks, more hierarchy: coordination and control, top-down
communication mechanistic structure
From fluid to specific:
Structure: from informal to formal
Organizational behavior: from flexible and responsive to rigid and predictable
Power: from entrepreuneurs to managers
Orientation: form external to internal
Questions:
During the development of a new industry, where do most product innovations take place?
new firms that join new industry (established firms that join new industry vindt ook
product innovation plaats maar minder daarom was dit niet het goede antwoord)
During the development of a new industry, when is it more appropriate to focus on product
innovation?
when revenue is increasing
Tushman and Anderson (1986) – Technological discontinuities
Technology: those tools, devices, and knowledge that mediate between inputs and outputs
(process technologies) and/or that create new products or services (product technology)
Dominant design reflects the emergence of product-class standards and end of the period of
technological development. The dominant design becomes a guidepost for further product or
process change.
De toenemende technologische vooruitgang vindt plaats door de interactie van vele
organisaties die worden gestimuleerd door het vooruitzicht op economische rendement.
Product discontinuities are reflected either in process substitution, or in process innovations
that result in radical improvements in industry-specific dimensions of merit (verdienste).
Munificence: to the extent in which an environment can support growth
Bij het rondje: competence enhancing
aangezien ze dezelfde dingen ervoor
konden gebruiken om dvd’s te maken
Bij de pijl: competence destroying
omdat ze er nieuwe dingen voor nodig
hadden en er niet verder op konden
bouwen
Technological discontinuities – grote technologische verschuivingen
- Competence enhancing (discontinuities)
Large improvements in price/performance
Builds on existing knowledge
Such innovations substitute for older technologies, but do not render the skills obsolete
required to master the old technologies
, Uncertainty
Price-performance improvements, associated with increased demand and
environmental munificence
New products or new processes bv. betere prijs of technologie
As product classes mature, the underlying resource base becomes ever more limited by
physical and resource constraints.
Rich get richer: established (gevestigde) players benefit
- Competence destroying (discontinuities)
Large improvements in price/performance
Creates a new product class or substitutes for an existing product (new/vervangt)
Uncertainty
Price-performance improvements, associated with increased demand and
environmental munificence
Existing knowledge becomes obsolete (verouderd)
Entirely different knowledge and competencies
Core technology shift deze veroorzaakt grote veranderingen in verdeling van macht
en controle binnen het bedrijf
Barriers to entry are lowered, new firms betreden sneller en maken gebruik van de
nieuwe technologie
Rich get poor(er): new entrants benefit
Technological discontinuities change the competitive environment and reward those
innovative firms that are first to recognize and exploit technological opportunities
H1: technological change within a product class will be characterized by long periods of
incremental change punctuated (onderbroken) by discontinuities
H1a: technological discontinuities are either competence enhancing or competence destroying
H2: de plaats van innovatie zal verschillen voor competence destroying and competence
ehancing technological changes. Competence destroying discontinuities will be initiated by
new entrants, while competence enhancing discontinuities will be initiated by existing firms
H3: competitive uncertainty will be higher after a technological discontinuity than before the
discontinuity
H4: environmental munificence will be higher after a technological discontinuity than before
H5: competence enhancing discontinuities will be associated with decreased entry-to-exit
ratios and decreased interfirm sales variability. These patterns will be reversed for
competence destroying discontinuities partially supported
H6: Successive competence-enhancing discontinuities will be associated with smaller
increases in uncertainty and munificence
H7: Those organizations that initiate major technological innovations will have higher growth
rates than other firms in the product class
all supported (except H5: partially supported)
Conclusie
Technological change clearly affects organizational environments. These results suggest that
technology is not a static environmental resource. Rather, technology advances through the
competition between alternative technologies promoted by rivalrous organizations.
Lecture 3
Organizing for radical innovation (types of innovation)
Schoenmakers and Duysters (2010) The Technological Orgins of Radical Inventions
