Technology-based Industries the Management of Innovation.ppt
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1、,Technology-based Industries & the Management of Innovation,Competitive advantage in technology-intensive Industries Appropriating the returns to innovation Strategies to exploit innovation Alternative approaches Timing: to lead or to follow? Managing risk Competing for standards Implementing techno
2、logy strategy The conditions for creativity From invention to innovation,OUTLINE,The Development of Technology: From Knowledge Generation to Diffusion,Basic Knowledge,Invention,Innovation,Diffusion,IMITATION,ADOPTION,Supply side,Demand side,The Development of Technology: Lags Between Knowledge Gener
3、ation and Commercialization,BASIC FIRST PRODUCT IMITATIONKNOWLEDGE PATENTS LAUNCH Xerography late 19th and 1940 1958 1974 early 20th centuries Jet Engines 17th- early 1930 1957 195920th centuries Fuzzy logic 1960s 1981 1987 1988 controllers MP3 players Early 1990s 1994 1997 1999,Appropriation of Val
4、ue:- How are the Benefits from Innovation Distributed?,Customers,Suppliers,Imitators and other “followers”,Innovator,The Profitability of Innovation,Legal protectionComplementary resourcesImitability of the technology Lead time,Profits from Innovation,Value of the innovation,Innovators ability to ap
5、propriate the value of the innovation,Legal Protection of Intellectual Property,Patents exclusive rights to a new product, process, substance or design. Copyrights exclusive rights to artistic, dramatic, and musical works. Trademarks exclusive rights to words, symbols or other marks to distinguish g
6、oods and services; trademarks are registered with the Patent Office. Trade Secrets protection of chemical formulae, recipes, and industrial processes.,Also, private contracts between firms and between a firm and itsemployees can restrict the transfer of technology and know how.,Complementary Resourc
7、es,Bargaining power of owners of complementary resources depends upon whether complementary resources are generic or specialized.,Manufacturing,Distribution,Service,Complementary technologies,Other,Other,Marketing,Finance,Core technological know-how,Lead Time,If rivals can imitatetime lag is the maj
8、or advantage of the innovator. But maintaining lead-time advantage requires continuous innovation Lead time is reinforced by learning effects,U.S. Managers Perceptions of the Effectiveness of Different Mechanisms for Protecting Innovation,Processes ProductsPatents to prevent duplication 3.52 4.33Pat
9、ents to secure royalty income 3.31 3.75Secrecy 4.31 3.57 Lead time 5.11 5.41Moving quickly down the learning 5.02 5.09curve Sales or service efforts 4.55 5.591 = not at all effective 7 = very effective,Source: Levin, Klevorick, Nelson & Winter. Brookings Papers on Economic Activity, 1987.,Risk & Ret
10、urn,CompetingResources,Examples,Licensing,Outsourcing certain functions,Strategic Alliance,Joint Venture,Internal Commercialization,Small risk, but limited returns also (unless patent position very strong,Limits investment, but dependence on suppliers & partners,Benefits of flexibility; risks of inf
11、ormal structure,Shares investment & risk. Risk of partner conflict & culture clash,Biggest risks & benefits. Allows complete control,Few,Allows outside resources & capabilities To be accessed,Permits pooling of the resources/capabilities of more than one firm,Substantial resource requirements,Konica
12、 licensing its digital camera to HP,Pixars movies (e.g. “Toy Story”) marketed & distributed by Disney.,Apple and Sharp build the “Newton” PDA,Microsoft and NBC formed MSNBC,TIs development of Digital Signal Processing Chips,Alternative Strategies for Exploiting Innovation,The Comparative Success of
13、Leaders and Followers,PRODUCT INNOVATOR FOLLOWER WINNER Jet Airliners De Havilland (Comet) Boeing (707) Follower Float glass Pilkington Corning Leader X-Ray Scanner EMI General Electric Follower Office P.C. Xerox IBM Follower VCRs Ampex/Sony Matsushita Follower Diet Cola R.C. Cola Coca Cola Follower
14、 Instant Cameras Polaroid Kodak Leader Pocket Calculator Bowmar Texas Instruments Follower Microwave Oven Raytheon Samsung Follower Plain Paper Copiers Xerox Canon Not clear Fiber Optic Cable Corning many companies Leader Video Games Players Atari Nintendo/Sony Followers Disposable Diapers Proctor &
15、 Gamble Kimberly-Clark Leader Web browser Netscape Microsoft Follower PDA Psion, Apple Palm Follower MP3 music players Diamond Multimedia Apple, Sony (&others) Followers,Leaders vs. Followers in Innovation,PRODUCT INNOVATOR FOLLOWER WINNER Jet Airliners De Havilland (Comet) Boeing (707) Follower Flo
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