deel 2 Flashcards
(19 cards)
Name the characteristics of open innovation
- many smart people outside
- external R&D -> create value
internal R&D -> claim some value - better business model -> win
- use best internal and external ideas -> win
- use others IP or liscence IP out
- know-who most important
Name the characteristics of closed innovation
- Smart people on the loonlijst
- in-house R&D
- discover and first to market -> win
create most and best ideas -> win - protect IP from rivals
- know-how most important
What are the key factors in the balance open/closed innovation?
1) competative rivalry -> closed innovation
2) one-shot innovation (winners on top, losers permantly behind) -> open innovation works best
3)tight-linked innovation (technologies complex and tightly interlinked) -> open innovation damages
What are the problems with innovation S-curves?
- differences accross firms (switching S-curves are firm specific factors)
- observed maturation may the result of alternatives
- many alternatives for component S-curves within architecture no clear advantage between:
- incremntal improvements to
component
- S-curve hopping - switching architecture s-curve is critical (evaluate tech and market dimensions, might look irrelevant or inferior on old criterea)
What is enhancing innovation?
Refinements or improvements to existing technologies but with new knowledge.
What is a disruptive innovation and what are the criteria?
fundamentally change the market with different approach (Netflix over TV).
1) established technology loses to new tech with inferior performance
2) many costumers are unable to use existing technology (inconvenient to use)
3) low-end costumers accept lower performance for lower price
4) can create business model: lower prices good profit
5) innovation is disruptive to all significant incumbents digital camera over big high res lenses.
What are keys for disruptive change?
- strategically important disruptive technologies
- small orders create energy
- fast low-cost forays in ill-defined market are possible
- low overhead permits profit even in emerging markets.
Explain crossing the chasm
From early adopters to early maturity there is the chasm because these groups have different expectations and targeting the right group is important to survive.
Explain moore’s law
The number of transistors on integrated circuit doubles every two years (exponentially)
What determines the pace of diffusion on the supply side?
1) degree of improvement
2) compatibility (Apple)
3) complexity
4) experimentation (free trial periods)
5) relationship management
What determines the pace of diffusion on the demand side?
1) market awareness
2) netwrok effects
3) costumer propencity to adopt
Explain incremental innovation
small, gradual improvements of existing technologies based on existing knowlegde (software updates)
Explain radical innovation
major, breakthrough change/create new market with new technology (internet)
What are Rumelt’s criteria for strategy evaluation?
1) consistancy: elements don’t contradict each other
2) consonance: adaptive response to the environment
3) advantage: attemps to create a competative advantage
4) feasibility: does not overwelm resources
What is a gap analysis and where is it used for?
compares actual or projected performance with desired performances. it is used to see if the strategy is going to fill the gap and can be implemented
How can the strategy be evaluated and what does it include?
- economic
- performance in product markets
- profitability (DuPont model dissect a
companies return on capital employed
in order to work out components that
adds value to)
- financial market (share price) - effectness -> broader set of performance criterea
What is the balanced scorecard and what does it include?
A way to measure in a broader perspective the effectiveness of a strategy. in includes:
1) costumer perspective
- market share
- brand image
- aquisition, satisfaction, relations
2) internal perspective
- qualitiy indices
- manufacturing costs and cycle lifetime
- inventory and supply chain management
3) learning/innovation
- R&D competences
- new products competences
- HR development
- improved processes
4) financial
- KPI’s
5) sustainability
- social and environmental
What is the triple bottomline?
Social responsibility method (stakeholders) pays explixit attention to CSR and envrionment.
1) economic measures
2) social measures
3) environmental measures
What does the acceptability in SAFE include and what are the problems?
1) returns (financial)
- uncertainty hard to quantify
2) Risk (sensitivity analysis; financial, break-even, cost-benefit)
3) reaction of stakeholders
