MGMT 3000 1st Edition Lecture12Outline of Last Lecture I. Industry level strategies a. Porter’s 5tt industry forces b. Positioning Strategy c. Adaptive strategiesII. Firm Level strategies a. Direct competition Outline of Current Lecture I. Organizational innovation II. Technology cycles III. Innovation Streams IV. Sustaining vs. Disruptive Technologies Current Lecture Organizational innovation: successful implementation of creative ideas in an organization Creativity: production of novel and useful ideas Organizational change: difference in the form, quality, or condition of an organization over time Technology Cycles: Cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer, better technology Technology: consist of the knowledge, tools, and techniques used to transform inputs into outputs S-curve pattern of innovation: characterized by slow initial progress, then rapid progress and then slow progress again as the technology matures and reaches its limit Innovation streams: pattern of innovation over time that can create a sustainable competitive advantage Technological discontinuity: Scientific advance or unique combination of existing technology that creates a significant breakthrough in performance or function Discontinuous change: technological substation and design competition that follows technological discontinuities - Technological substitution occurs when customers purchase new technologies to replace older technologies - Design competition: competition between old and new technological standard or dominant design These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Dominant Design: new technological design that becomes the accepted market standard follows discontinuous change - Critical mass - Solves a practical problem - Independent Standard Bodies Technological Lockout: inability of a company to competitively sell its products because it relied on old technology or non-dominant design Incremental change: phase of technology cycle in which companies innovate by lowering costs and improving functioning and performance of the dominant technological design Innovator’s dilemma: The logical, competent decisions of management that are critical to the success of their companies are also the reasons why they lose their positions of leadership and sometimes fail altogetherSustaining vs. Disruptive Technologies Sustaining technologies Meet demands of mainstream customers in major markets. Improve performance of established products Can be discontinuous, radical or incremental in nature. Most technological advances in an industry are sustaining in character.Typically, the domain of established firms.Disruptive Technologies: Underperform established products in mainstream markets (in the near-term). New features that fringe/new customers value Cheaper, simpler, smaller, more convenient to useTypically, the domain of entrant
View Full Document
Unlocking...