Archive for EngD
- Rise of the Ingineer
- 2011 IPICS Summer School
- Introduction to the EngD in Systems
- EngD Blogs
- May Activity
- Technology, Strategy and Organisation (Day 2)
- Technology, Strategy and Organisation (Day 1)
- Technology, Strategy and Organisation (Day 3)
- April Activity
- February Activity
Rise of the Ingineer
By the very nature of their jobs, engineers are highly-skilled and technically-minded people. Engineers are innately creative problem solvers that utalise their knowledge and skill to create almost everything we use today. Ask people what they think of engineers and engineering (and I often do), and the response will usually be along the lines of applying mathematics to some design before getting dirty and building something. There are many aspects of engineering that put people off the subject and often the hard technical aspect overshadows the soft creative side.
The engineer can fall into the role of a technical expert and their work is misunderstood. One reason engineers aren’t considered creative is that they often don’t start with the proverbial blank sheet of paper each time they do something. Rather, they bring together and build on existing technology and try to improve incrementally on its performance. An engineer’s core mission is to try to improve the utility of things, to design products or processes that will solve problems better, faster, and cheaper.
While engineering can be technically demanding and required a working knowledge of maths, I feel I flex my creative engineer muscles regularly. Working with hard and soft systems provides the ideal technical creative environment to express innovative solutions to multilayer problems. In a recent discussion the term ‘Ingineer’ was used to distinguish from the stereotypical main stream view of ‘engineering’, to allow us to visualise the softer traits of a creative engineer. Rather than focus on the output, the process and initial thinking behind an inspiration was examined. When we think of invention, we (in the UK) still like the idea of a slight eccentric working away in their shed (like James Dyson). I don’t want to get into the discussion regarding who is and isn’t an ‘engineer’, but most engineers will have the capacity to influence society by meeting a demand, solving a problem or through innovation.
2011 IPICS Summer School
The Intensive Program on Information Communication Security (IPICS) academic summer school is a two week course for Master`s students in their final year, PhD students and IT professionals interested in a comprehensive overview and broad coverage of recent developments in “Information and Communication Security”. This year the IPICS was hosted by the Department of Informatics, Ionian University, at Kerkyra (Corfu), Greece.
The summer school provides the option to complete an essay on a topic from the lectures, worth 4ECT credits that count towards the additional module requirement within the EngD degree programme. The EngD programme has additional modules that allow the student to study MSc level modules relevant to their research. Meeting the additional module requirement within a two week period, helped ensure that my industrial sponsor saw the business case and value from my time away. This is a clear example of the fabled WIN-WIN-WIN situation.
The price of the IPICS summer school, accommodation and flights to Corfu, came under the internal budget for one MSc module. This allowed the University of Bristol to cover costs. This year the IPICS security summer school was sponsored by Kaspersky Anti-virus, who not only helped subsidise the event, but also provided attendees with a Kaspersky poloshirt and other goodies.
I ran the IPICS programme past an CISSP professional and senior security analyst within my industrial sponsoring company, who approved of the content as it covered many of the areas required in the CISSP certification. While the final content of the programme depends on the availability of lecturers from different fields, the topics for 2011 covered;
- Computer Malware
- Intrusion Prevention, Detection & Response
- Computer forensics & Incident Response
- Usability of Security and Security Culture
- Information Security Standards/ISO 27000 series
- Business Continuity Planning and Information Security
- Security Certifications (CISSP, CISA, CISM)
- The European Legal Framework on Data Protection
- Privacy Issues, Requirements and Enhancing Technologies
- Privacy in e-communications and Location-Based Services
- Cryptography and Cryptanalysis
- PKI, key and Identity management
- Smart Cards Authentication
- Security of Mobile Payments, Ad-hoc NETworks (MANETs) & Communications
- Security and Privacy in Wireless Sensor Networks
- Security in the Internet of Things (IoT)
- RFID Security
- Cloud Computing Security
- Software security and Obfuscation
While everyone had their favourite talks and topics, the whole programme provides a holistic view of the latest research and thinking across the information security spectrum. The content was easy to follow if the topic was not your field, and by the end of the course I feel I could approach any of the topics, confident that I now have been given a good background. The broad scope of the programme means that I now have some new ideas for research (such as P2P databases and true cloud services) and current ideas have been validated (such as usability of interfaces).
The IPICS course provides information security knowledge, but the true education comes from the multidisciplinary research of the international students and the extra curricular talks over drinks. Kerkyra is hot, and you soon find people to join you for an early morning swim off the dock or afternoon trips to the beach. The IPICS programme includes a (casual) GALA dinner and a weekend boat trip to explore more of the island. I can’t remember the last time I made so many new friends, learnt about so much new research across a wide range of fields or had so much fun ![]()
I doubt I’ll be able to go to the next IPICS 2012 course as an additional module, so I’ll have to work on a potential talk to offer and see if I can get in that way!
Introduction to the EngD in Systems
This is a quick presentation I put together to introduce the EngD in Systems to other PhD students at a group meeting.
The outline of the talk was to provide a brief overview of the EngD programme at the University of Bristol Systems Centre, and how it differs from the usual PhD route. Before talking about the Systems thinking element of the programme, and it’s importance, I wanted to bring everyone up to speed on the benefits of Systems Engineering. I finished with a quick discussion on my current research interest into smart grid systems and the information security of critical national infrastructure.
The EngD
Association of Engineering Doctorates, http://www.aengd.org.uk
Systems Engineering
- An interdisciplinary approach, focused on defining the needs and requirements (especially early in development cycle),
- Design synthesis and system validation whilst considering the whole problem, across the complete lifecycle.
- Systems Engineering considers both technical and business needs of all customers/stakeholders.
Systems Engineering is an interdisciplinary approach and means to enable the realization of successful systems
- Every thing –even if it isn’t, can be considered as a system
- Using System properties is a means to understanding and managing the complexity of a system and preventing unwanted emergence
- A key aspect of complex engineering systems is the fact that they frequently suffer late-observed emergent properties – which are expensive and difficult to solve
- The problems faced by system creators are only getting more complex – or will have more complex interactions with existing systems
- The only known way of effectively reducing the problem is to apply Systems thinking systematically, rigorously as early in the problem life cycle as possible
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Big Picture thinking and the application of common sense to projects
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A structured and auditable approach to identifying the requirements, managing interfaces and controlling risks through the project lifecycle
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Making sure appropriate effort is put into understanding the purpose of system, and ensuring a top-down approach (rather than diving straight to detail solution)
What is Systems Thinking?
- Understanding the system elements
- Understanding the relationships between elements (‘interfaces’)
- Understanding any emergent properties
- Click for more Systems Thinking information >>
My Research
At this stage in my research, I mostly spoke about potential future research as we move towards an integrated ‘smart’ national infrastructure that will require levels of collaboration and information sharing, and the change management project required to assist with this transision. You can visit my research page for more information.
EngD Blogs
I have been meaning to search for other EngD blogs, but despite the EngD running for a number of years, there seems to be only a few. Looking at the google stats between search terms ‘EngD blog‘ (144k results, 0.27 seconds) and ‘PhD blog‘ (41.4M results, 0.18 seconds) highlights how under represented the EngD programme is – no wonder we have to keep explaining the difference.
Clare Hooper
I’m soon to graduate from my EngD (conducted in the University of Southampton’s Learning Societies Lab, sponsored by IBM UK). I now work in the User Centered Engineering group at the Eindhoven University of Technology. My research interests include (but are not limited to) hypertext, web science and how we design software. My webpage lives here, and I’m also on Twitter.
Personal http://clarehooper.wordpress.com
EngD research blog at Southampton University
Jo Symington
I’m doing bits of marine microbiology, bits of molecular biology, bits of chemistry and bits of engineering and I’m working with an industrial partner Croda… and I’m technically a biologist (at least I think I remember my first degree being Applied Biology…) so how have I ended up doing an EngD???
EngD research blog Jo’s Eng-mare!!!
Ben Betts
There I am currently studying for an EngD (Doctor of Engineering), studying the role of new technology for learning within corporate environments. I started this blog to collect my thoughts for the EngD and to test out some theories, mostly to see what kind of response they generate. @bbetts
http://www.ht2.co.uk/ben/?page_id=2
Some blogs that have started
EngD Eppie
I’m Eppie, currently in my first year of the Engineering Doctorate in Biopharmaceutical Bioprocess Development at Newcastle University. Yeah, it’s a real long name and I’m not 100% sure I’ve even got it down right. We just call it the EngD.
http://engdeppie.wordpress.com
I’m going to keep an eye out, but let me know if I’ve missed any!
May Activity
No time to think this month as we not only revise for the TSO exam (2nd June, 1Day) but also have a lecture block ‘Maths for Systems’ with daily bits of coursework to be completed (and it really mounts up if not done) and a module assignment.
I also squeezed the six month review in that I should have scheduled earlier to get it out of the way. The meeting was really to tick a box and fill in some paper work for the systems centre. I get the feeling my industrial supervisor was expecting a report or presentation, but I had to admit that with no time, I hadn’t prepared anything and this was going to be the first proper chat between us all about the research project. It was good to see that my academic supervisor was laid back and ‘happy’ with the level of progress made, which countered the business pressure to have an entire timing and requirements plan in place. I did come away with some action points and a better idea of a research direction that would benefit us all.
University
- EngD Lectures; Maths for Systems (16th-20th May)
- 6 Month Review (12th May)
- TSO Exam (2nd June)
- 2nd Systems Centre Annual Conference (24th – 25th)
- Literature Review
- Supervision; 1 Rasmus student (Systems Engineering), 2 MSc Students (DoS, Modelling)
- RASMUS Student research, survey and draft paper
Company
For confidentiality I obviously snip the sensitive parts from this activity log, but try to give an idea or theme of what I get up to as an EngD research engineer. This month was honestly, not a lot due to travelling to/from conferences and cramming for the TSO exam.
OTHER
- Defence IT 2011 Conference
- InfoSec 2011 Conference
- Future Ideas generation
Other
- Public Engagement – System Centre day for GCSE/sixth form students
Technology, Strategy and Organisation (Day 2)
Innovation and the firm: Why innovate
- Strong correlation between market performance and new product launches
- Top 20% of innovative firms create 4x shareholder value than bottom 20%
- Key to sustaining performance and competitive advantage, since innovation and technological change are principal driers of comopetition across many sectors
- Innovation is a great equalizer, eroding the competitive advantage of well established firms and propelling others forward
- An alternative to M&A (i.e. through organic growth)
| If innovation is only seen as… | The result can be… |
| Strong R&D capability | Technology which fails to meet user needs and may not be accepted |
| The province of specialists | Lack of involvement by others, and a lack of key knowledge and experience input from other perspectives in the R&D |
| Understanding and meeting customer needs | Lack of technical progression, leading to inability to gain competitive edge |
| Advances along the technology frontier | Producing products or services which the market does not want or designing processes which do not meet the needs of the user and whose implementation is resisted |
| The province only of large firms | Weak small firms with too high dependence on large customers. Disruptive innovation as apparently insignificant small players seize new technical or market opportunities |
| Only about breakthrough changes | Neglect of the potential of incremental innovation with an inability to secure and reinforce the gains from radical change because the incremental performance ratchet is not working well |
| Only about strategically targeted projects | Many miss out on lucky ‘accidents’ which open up new possibilities |
| Only internally generated | The ‘not invented here’ effect, where good ideas from outside are resisted or rejected |
| Only externally generated | Innovation becomes simply a matter of filing a shopping list of needs from outside and there is little internal learning or development of technical competence |
| Only concerning single firms | Excludes the possibility of various forms of inter-organizational networking to create new products, streamline shared processes, etc. |
Types of innovation
| Innovation type | Definition | Examples |
| Product | A novel tangible artifact, including materials and components, those based on high as well as low technology, and those aimed at individuals or organisations | From high-tech (e.g. computers) to low tech (e.g. ready-made meals, and from consumer products (e.g. mobile phones) to industrial products (e.g. new building equipment or materials) |
| Service | Intengible and involving the undertaking of a novel activity for another individual or organisation | Online grocery shopping and home delivery offered by supermarkets |
| Process | Generally concerns novel technological processes, as distinct from organizational processes | DNA fingerprinting, frequently used in policy work and paternity cases |
| Organizational/administrative | Novelty in organizing or the undertaking of processes or tasks within an organization | TQM, BPR, ‘hot-desking’ and virtual team-working |
| Delivery | Novelty in the delivery of products or services, for example, from provider to consumer | Mobile breast cancer screening facilities, which shift provision out of hospitals and into local communities |
| Marketing | Novelty in the marketing of products of services, for example | ‘Viral’ marketing or product placement in films |
| Business model | Novelty in the ‘driers’ of an organisation’s activities or strategy | Low-cost airlines, as typified by EasyJet, and Internet firms, such as Google, which generate revenue through advertising rather than services they provide |
| Institutions | The establishment of an organization with a novel role, whether within the private, public or non-for profit sectors | At their formation, institutions such as the United nations , the world trade organization, and the British National Health Service |
Alternative perspectives on products and services
| Perspective | Type | References from literature |
| Product Dominant | Traditional perspective. Goods Dominant Logic’ (Value-in-Exchange) | Implicit in much innovation literature. |
| Product Plus Service | Extention of traditional perspective | Explicit in much marketing literature |
| Service orientated | Servitization | Vandermerwe and Rada (1988) |
| Service dominant | Service Dominant Logic (value in use) | Vargo et al (2008) |
| Product and service dimensions | Dimensions of innovation | Hartley (2005) |
The Servitization Trajectory
What do we mean by Innovation / Innovative
- A new idea / product / service (i.e. an output)
- An expression of novelty
- It implies a process
- An organizational capability
Incremental versus radical innovation
Degree of Novelty
- Radical = replacing versus
- Incremental = modifying / improving
Novel to whom?
- Variations along supply-chain
- Variations between sectors
- Variations between nations
Assessing the degree of novelty of an innovation
- Embedded characteristics: objective measure
- Benefit to the user or adopter through usage or consumption: subjective measure
- Breadth of diffusion (e.g. geographically, applications, industrial sectors)
- Impact on organizations capabilities and competences
- Time elapsed since market launch
Component versus Architectural Innovation
- Component innovation = innovation in a physically distinct portion of the product, service, or process that performs a well-defined function
- Architectural innovation = innovation that changes the way in which the different components are ‘linked together’
Core Concepts vs. Linkages between Core Concepts and Components
A typology of innovation based on the reconfiguration of existing technologies (Henderson and Clark, 1990:12)
How do we measure the ‘success of an innovation’?
- Financial criteria e.g. speed of return on investment
- Market criteria e.g. speed of breadth of diffusion
- Technical criteria e.g. high performance or ‘elegance’
- Strategic criteria e.g. the building of new competence
- Process criteria e.g. time to market
- BUT… successful to whom?
Innovation as an interactive process
- Innovation is rarely a one-off event
- Radical innovation is typically followed by a series of incremental innovations (sometimes referred to as ‘re-innovation’)
- Radical innovation typically requires the ‘unlearning’ of earlier knowledge and practices (sometimes referred to as ‘exnovation’)
- Success can arise from failure
Innovation as an interactive process (Rothwell and Gardiner 1983)
The ‘substance’ of innovation strategy
- Selection of the technologies in which the organisationwill specialize
- Proximity to the state-of –the-art in these selected technologies
- Relative emphasis on basic research, applied research, & development
- Degree to which technology is developed internally or sourced externally
- Aggregate levels of investment in research and development
- Degree to which R&D will be centralized or decentralized
- Selection of the mechanisms for protecting R&D investments (e.g. patents).
- Selection of alternative routes for appropriating the benefits of innovation (e.g. patents)
Session 2: Exploring the Dimensions of Technology Strategy
Key Questions
- Is it best to be first-to-market or a follower?
- To focus on incremental or radical innovation?
- To collaborate or not?
- To undertake R&D in-house or outsourcing?
- To de/centralize R&D / NPD?
- Either/or or and/both strategic decisions
Classification of ‘timing to market’ innovation strategies
| Classification Maidique and Patch (1988) | Porter (1985:181-91) | Freeman & Soete (1997:265-85) | Miles and Snow (1978) | Strategic aim of strategy |
| ‘first to market’ or ‘leader’ strategy | Leadership strategy | Offensive strategy | Prospector strategy | To be first into the market with an innovation in order to gain first-mover advantages, such as monopoly profits. |
| ‘Second to market’ or ‘fast follower’ strategy | Defensive strategy | Analyser strategy | To lear from the mistakes of the first-mover and enter the market with an improved innovation in the early stages of the life cycle | |
| ‘Late to market’ or ‘cost minimization’ strategy | Followership strategy | Imitative strategy | Defender strategy | To enter the market later in the life cycle, once demand has grown sufficiently to allow significant economies of scale to be achieved. The aim is to gain cost advantage over competitors. |
| ‘Market segmentation’ or ‘specialist’ strategy | Opportunist strategy | To innovate for a particular application/niche. May occur at various stages of the life cycle | ||
| Dependent strategy | To accept a subordinate role to its )often much larger) customers, who initiate the innovation process and provide the technical specifications | |||
| Traditional strategy | Reactor strategy | To continue much as before. Little emphasis on innovation and little capability to innovate. |
Porter argues that the adoption of a leadership or followership strategy by an organization is based on the assessment of three factors;
- First mover advantages
- First mover disadvantages
- The degree to which a lead can be sustained.
First mover advantages are derived from three sources;
- Technological leadership
- Pre-emption of assets
- Buyer switching costs
Offensive / First-to-market / Leadership innovation strategy
This strategy is designed to achieve technical and market leadership by keeping ahead of competitors
- Must take long-term view and accept high risks
- Emphasis on flexibility over efficiency
- Emphasis on stimulating primary demand
- Require competencies in developing primary demand in markets
- Patent protection important
- Seeking premium profits to cover heavy R&D costs
- Knowledge intensive strategy
- Requires state of the art R&D
- Substantial investment
Defensive / Second-To-Market Innovation Strategy
With this strategy the organization does not wish to be first nor left behind, but also not ‘carbon copy’
- Lower risk as market opened up
- Possibility of learning from mistakes of others
- Emphasis on stimulating secondary demand
- Requires rapid commitment of capital
- Must be responsive and adaptive
- Need to combine elements of flexibility and efficiency
- Also a knowledge intensive strategy
- Requires flexible and responsive advanced R&D
- Rapid mobilisation of capital
Imitative / Late-to-market / followership innovation strategy
With this strategy the organization does not aspire to keep up with the state-of- the art, but adopts established technologies
- Adopt established technology, Often through licenses
- Compete on costs through mass production
- Requires skill in process development
- Emphasis on efficiency and control
- Requires large-scale production for economies of scale
- Requires access to large amounts of capital
- Requires a focus on minimizing distribution costs
First-to-market: an appropriate strategy?
Advantages
- Monopoly profits
- Technological leadership
- Buyer switching costs
- Industry standards
- Patent protection
- Pre-emptive ‘capture’ of scarce resource
- Raise barriers to entry
Disadvantages
- Pioneering costs
- Follower ‘free-riding’
- May face burden of regulatory approval
- May face burden of new infrastructure
- Likely to face greater risk and uncertainty
| Product | Innovator | Follower | The winner |
| Jet airliner | De Haviland (Comet) | Boeing (707) | The winner |
| Float glass | Pilkington | Corning | Leader |
| X-ray scanner | EMI | General Electric | Follower |
| Office PC | Xerox | IBM | Follower |
| VCRs | Ampex/Sony | Matsushita | Follower |
| Diet Cola | R.C. Cola | Coca-cola | Follower |
| Instant camera | Polaroid | Kodak | Leader |
| Pocket calculator | Bowmar | Texas instruments | Follower |
| Microwave oven | Raytheon | Samsung | Follower |
| Plain-paper copier | Xerox | Canon | Not clear |
| Fibre-optic cable | Corning | Many companies | Leader |
| Videogames consoles | Atari | Sony/Nintendo/Microsoft | Followers |
| Disposable diaper | Proctor and Gamble | Kimberley-Clark | Leader |
| Web browser | Netscape | Microsoft | Follower |
| MP3 players | Diamond multimedia | Apple/Sony/others | Followers |
Paradoxical nature of strategy
“At the heart of every set of strategic issues, a fundamental tension between apparent opposites can be identified… Each pair of opposites… seem to be inconsistent, or even in compatible, with one another… If firms are competing, they are cooperating. If firms must comply to the industry context, they have no choice. Yet, although these opposites confront strategists with conflicting pressures, strategists must somehow deal with them simultaneously.” (De Wit and Meyer, 2004:13)
Different types of tension in organizational decision-making
- Puzzle = challenging problem with an optimal solution.
- Dilemma = vexing problem with two possible solutions, neither of which is logically the best. They confront problem solves with diffulcut either-or choices.
- Trade-off = problem situation in which there are many possible solutions, each striking a blance between conflicting pressures
- Paradox = a situation in which two seeming contradictory, or even mutually exclusive, factors appear to be true at the same time. It is a problem with no real solution, or one which is internally consistent. Thus paradox can be characterized as a ‘both-and’ rather than ‘either-or’ problem, where e the solution requires the accommodation of opposites.
Paradoxes in the management of innovation
The following are in constant tension:
- Planned versus Emergent (strategy & projects)
- Top-down versus bottom-up (strategy)
- Formal versus informal (structures & processes)
- Exploration verssu exploitation of ideas
- Radical versus incremental innovation
- Internal (in-house versus external (outsourcing)
Managing multiple innovation strategies
Organizations may follow:
- Different strategies at different times
- Different strategies in different sectors
- Different strategies in different divisions
Session 4: Patterns of Innovation and Evolution of Technology and Industries
Key questions
- What patterns exist in the life of a technology and/or innovation?
- What models exist to help explain and map such patterns?
- To what extent are such models useful?
- What are the implications of strategy-making
Models to be discussed
- The ‘Technology Life Cycle’ (TLC) model – this maps the sales volume trajectory of a technology over time.
- The ‘Technology S-curve’ model – this maps the technical performance trajectory of a technology in relation to research and development (R&D) effort.
- The ‘Product-Process Cycle’ model – this maps the interrelated trajectories over time of product and process innovations within a sector.
- The ‘Dominant Design’ model – this maps the emergence of a dominant design of an innovation or technology over time.
- The ‘Diffusion Curve’ model – this maps the diffusion trajectory of an innovation ortechnology over time.
Features of models
- All of the models are dynamic in nature;
- Each can be grouped according to whether it attempts to map the ‘market’ performance trajectory or the technical performance trajectory of a technology;
- Each typically adopts either a cumulative or a non-cummulative approach to expressing and mapping progress
- Each model may be classified in relation to the four ‘motors of change’
The ‘Technology Life Cycle’ (TLC) Model
Mapping the sales volume trajectory of a technology over time
The ‘Technology S-Curve’ model
Mapping the technical performance trajectory of a technology in relation to research and development (R&D) effort.
Initial effort doesn’t provide performance returns due to the ground work, back ground knowledge and research. Performance is measured against a metric related to the product rather than knowledge accumulated.
Exponential growth
S-Curve Model Examples
| S-Curve for the automobile | Series of shifting S-Curves of Semiconductor Technology |
| S-curve for Intel microprocessor speed | S-curve for Intel microprocessor density |
Over view of the S-Curve model
| Key Features | The model highlights the changing relationship between R&D effort (inputs) and improvements in the technical performance of a technology (outputs) over its lifecycle. The ‘technical limit’ and the technical potential (i.e. the gap between the current position of the curve of an organization or the state-of the-art and the technical limit) are key elements of the model. |
| Implications for managing innovation | Early on the life of a technology, patience is required, because R&D effort yields are low as the organization and sector build foundational knowledge and skills. The diminishing returns on R&D are important for signaling the narrowing of technical potential and the approach of the technical limit, and thus are key for highlighting the need to look for alternative technologies |
| Critique-limitations | It represents a fairly crude input-output model, which black boxes’ important aspects of process and context. It is also very difficult to determine or measure with any accuracy they key elements of the model, such as the technical limit or the current position on the curve of the organization or state-of-the-art |
| Critique-complications in application | The important performance criteria for a technology are subject to change and are often in tension with one another. A technology may be compromise of |
The ‘Product-Process Cycle’ Model
Mapping the interrelated trajectories over time of product and process innovations within a sector
Innovation characteristics linked to phases of the product-process cycle
| Innovation characteristic | Fluid pattern | Transitional phase | Specific phase |
| Competitive emphasis placed on… | Functional product performance | Product variation | Cost reduction |
| Innovation stimulated by… | Information on user needs, technical inputs | Opportunities created by expanding internal technical capability | Pressure to reduce cost, improve quality, etc. |
| Predominant type of innovation | Frequent major changes in products | Major process innovations required by rising volume | Incremental product and process innovation |
| Product line | Diverse, often including custom designs | Includes at least one stable or dominant design | Mostly undifferentiated standard products |
| Production processes | Flexible and inefficient – aim is to experiment and make frequent changes | Becoming more rigid and defined | Efficient, often capital intensive and relatively rigid |
The reverse product-process cycle
An overview of the product-process cycle model
| Key Features | The product-process cycle incorporates three phases, each with particular patterns of innovation, competition, industry structure, and organization
During the life cycle, there is a shift from product to process innovation, major improvement to incremental innovation, entrepreneurial to large ‘mechanistic’ organizations, and competition based on differentiation to that based on cost. |
| Implications for managing innovation | At the organizational level, each phase of the model requires a different strategic orientation, centred on the balance between innovation and efficiency; and a different mode of organizing, concerning the balance between the ‘organic’ and mechanistic’ modes as well, as different competences and resources. At the sectoral level, different market conditions and competitive pressures characterize each phase of the model. |
| Critique-limitations | The original model is ‘unidirection’ and ‘irreversible’, however, subsequent versions allow for de-maturity during the ‘life course’ rather than ‘life cycle’ of a technology. The model has little efficacy when applied to a service sector, hence the development of reverse product-process cycle. It underemphasizes problems of transition for incumbent organizations |
| Critique-complications in application | Identifying the revolutionary transition between phases of the model is problematic, in part due to the ‘fuzziness’ of their boundaries. It is difficult to apply to complex products, such as computer, automobiles, and aircraft, which are comprised of nested levels of technology. |
The ‘Dominant Design’ Model
Mapping the emergence of a dominant design of an innovation or technology over time.
Stretching the dominant design through incremental innovation
Incremental innovation in:
- Handlebar arrangement
- Saddle position
- Huge gear
- Short wheelbase
- Riding position
… all lead to a very aerodynamic bicycle
Factors influencing the emergence of a dominant design
- Relative marketing and advertising expenditure
- Relative scope and scale of the distribution channels
- Relative brand (corporate and product) strength
- Degree of standard setting – influenced by regulation and/or industry cooperation
Shaping industry standards – the case of HDDVD and Blu-Ray
<insert notes>
Management implications of the emergence of a dominant design
- Diffusion mechanisms and standards setting play an important part in the emergence of a dominant design;
- Late entrants to the market are unlikely to be able to comete directly with the dominant design;
- Innovation opportunities exist in stretching the dominant design (the improvement of components, accessories and material) or developing niches.
An overview of the dominant design model
| Key features | In the early phase of a new technology, a range of divergent designs are present. After a time, however, there is a ‘shakeout’ as the market converges around one or a small number of designs that eventually dominate. Opportunities remain in relation to ‘stretching’ the design through innovation in materials and components, or in the development of new design families |
| Implications for managing innovation | The emergence of a dominant design or industry standard in a market signals the ending of a period of technological turbulence and competitive ferment. With the emergence of a dominant design comes the narrowing of opportunities for new entrant, and the need for incumbent organizations to influence the choice of design in the market and/or the industry standard. |
| Critique – limitations | The model is ‘unidirectional’, despite the recognition of niche opportunities. The model itself says little about why or how dominant designs emerge. But subsequent research has highlighted non-technological factors, such as developing loyalty among the user base, building wide distribution networks, and influencing standard-setting processes. |
| Critique – complications in application | It is time-consuming to apply to complex products, such as computer, automobiles, and aircraft, which are comprised of nested levels of technology; dominant designs may exist within each of these levels, and emerge ad different times and rates. |
The ‘Diffusion Curve’ Model
Mapping the diffusion trajectory of an innovation or technology over time.
Foster 1986
The innovativeness dimension, as measured by the time at which an individual adopts and innovation or innovations, is continuous. The innovativeness variable is partitioned into five adopted categories by laying off standard deviations from the average time of adoption (x). The model is useful for reporting, but not for forecasting.
- Innovators – Recognise the early market needs
- Early Adopters – Centre of communication ‘Free advertising’
- Early Majority – Momentum building
- Late Majority – Followers
- Laggards – Don’t care, objectors
Factors influencing diffusion innovation characteristics
- Relative advantage – the degree to which an innovation is perceived by potential adopters to be ‘better’ than alternatives;
- Compatibility – the degree to which an innovation is perceived by potential adopters to be aligned or consistent with their prevailing needs, values or experience
- Complexity – the degree to which an innovation is perceived by potential adopters to be difficult to understand or use;
- Trialability – the degree to which an innovation can be experimented with by potential adopters prior to adoption;
- Observability – the degree to which the benefits of an innovation can be observed by potential adopters
EXAMPLE: Diffusions and the case of virtual reality
Limitations
- No accounting for external factors (social, political, fuel prices, regulators)
- No interdependence
- Reporting – not forecasting
- Performance improvements / Functionality increase
Transitions between
Innovators -> Early Adopters
- Relevant marketing / advertising
- Distribution Channels
- Policy and Standards
- Brand Strength
- Social Networks
Different shapes for the product life cycle
An overview of the diffusion curve model
| Key features | The diffusion curve represents the typical diffusion pattern for an innovation. The model identifies five adopter categories, as well as five innovation attributes, which help to identify features of both users and innovations that impact the speed of diffusion/adoption of an innovation. |
| Implications for managing innovation | Different adopter categories have different roles to play in the diffusion adoption process, as well as in the innovation process. Shaping the innovation with regard to the five innovation attributes identified will help promote the rate of diffusion/adoption of an innovation. |
| Critique-Limitations | Without reliable market data for the potential groups that are likely to adopt the innovation, and thus the overall potential number of adopters, the diffusion curve model essentially becomes relegated to a reporting tool rather than a forecasting tool. The model does not explicitly take account of subsequent major improvements in the performance, cost, or functionality of the innovation that might alter the pattern of its diffusion. |
| Critique – complications in application | The diffusion pattern of ‘interactive’ innovations, such as the telephone, fax, email, and teleconferencing, differs from the diffusion pattern of discrete or non-interactive innovations. An innovation may be adopted, rejected, adopted and adapted, or adopted and then later abandoned. |
An overview of the key features of the models
| Model | Introduction stage | Growth stage | Maturity stage |
| Technology S-Curve | The rate of improvement in the technical performance of a technology is slow, because much of the R&D effort is required to develop the basic knowledge underpinning the technology. As a result, the technical performance returns from R&D effort are low. | As knowledge about a technology accumulates and is diffused and applied, the rate of progress in the improvement of a technology begins to accelerate. Here, the technical performance returns from R&D effort are high. But after the ‘point of inflection’ (the middle of the S-Curve) at which the yield is at its highest, the innovator begins to suffer from decreasing returns. | The yield on R&D effort begins to decline at an increasing rate as it approaches the ‘natural’ or ‘technical’ limits of the technology. |
| Product-process cycle | Associated with the emergence of a new market need or a new way of meeting an existing market need. Initially, in meeting this need, there is often vagueness concerning the appropriate performance criteria of the new product offering. As a result this phase is characterized by frequent major changes to products as well as diversity of products in the market place. | In order to meet rising demand for the new product, there is a shift away from frequent major product innovation to major process innovation. This phase is associated with emergence of one or a small number of stable product designs to allow significant production volumes, and the development of ‘islands of automation’. | There is a focus on cost reduction and product quality, and a shift towards incremental product and process innovation to bring about such improvements. The gradual and cumulative impact of ‘countless’ minor incremental product and process innovations can have a dramatic impact on productivity. |
| Dominant Design | The emergence of a new technology leads to a great variety of competing innovations with divergent designs in delivering the technology to the market place | There is a shakeout among the divergent set of design initially available in the marketplace, followed by the evolutionary improvement of a narrow range of ‘composite’ designs. | As the market matures, an even narrower set of consolidated designs emerges, with the possibility of the emergence of a single dominant design. Once establish in the market place the dominant design can then be ‘stretched’, through the development of new materials, components, and accessories, or through the development of the design families |
| Diffusion curve | ‘Innovators’, with a keen interest in new idea, are the first to adopt and innovation. They are a small minority of the overall group 9i.e. only about 2.5%). Early adopters’, unlike innovators are embedded in their social system, they are ‘localities’ rather than ‘cosmopolites’. This group represents a large proportion of the overall group, although still a minority (i.e. around 13.5%) | The ‘early majority’ are individuals who adopt an innovation just before the average person. They make up about one third of the overall group. Although they take long to deliberate before adopting or rejecting an innovation than innovation and early adopters, they have an important role to play in the diffusion process, through creating momentum in the diffusion of the innovation and social pressure on non-adopters to adopt, and help to build a critical mass | The ‘late majority’ are individuals who adopt innovations after the average person. They also make up about one third of the overall group. This group tends to be cautious or skeptical of new ideas. Often, peer pressure is an important stimulus for this group to adopt. ‘Laggards’ are the last to adopt. They constitute about one sixth of the overall group. They are generally suspicious of new ideas and change, and their point of reference tends to be the past. |
Conclusions
- Such models allow managers to view their industry from an historical and temporal perspective;
- They provide the language and tools for discussing the past, current, and future technological environment; an important prerequisite to the formulation of strategy
- However, such models are overly deterministic, and underplay the potential for organizations to influence the shape of, and speed of movement along, a trajectory;
- There is an over emphasis on the ‘supply-side’.
Extra reading: Managing and shaping innovation – the patterns of innovation within the life cycle of a technology
Technology, Strategy and Organisation (Day 1)
Here is the audio from the first day of the TSO module
Session 1-4
A discussion on selected case studies; Canned Laughter Machine. Examining the service-product element in modern servitization.
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Session 1-5
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What is strategy?
Quinn states that “a strategy is the pattern or plan that integrates and organisations goals, policies and action sequences into a cohesive whole.”
Chandler stated that “strategic decisions are concerned with the long-term health of the enterprise”.
Porter noted that “Strategy is about setting yourself apart from the competition” This is echoed by Ohmae whostates that “Business strategy is all about competitive advantage”.
Elements of strategic management
Some have stated that there are three aspects to strategic management which include;
- Strategic analysis
- strategic choice
- Strategy implementation.
It should be noted that there are strong relationships between all three elements.
Is strategy different from management
Strategy can sometimes be confused with management. The differences are in 3 broad areas which are related to:
- Timescale. Management is often looking over a short time frame, typically between 1-12 months, whereas strategy is longer term focused looking at time frames typically between 1-10 years.
- Level of analysis. Management is concerned with a lower level of a business, the micro level, where as strategy is looking at the Macro level workings of the organisation.
- The level of abstraction. Strategy is concerned with the conceptual more philosophical aspects i.e. “should we develop strategic technology alliances with suppliers?” where as management is looking at more concrete aspects such as “how do we improve our staff scheduling procedures?”
Types of decision
There are two types of decision in relation to management and strategy, which include:
- Programmed decisions which are, routing, undertaken frequently and often operational;
- And non-programmed decisions which are non-routine, undertaken infrequently or one-off decisions; often at strategy or policy level, greater potential for goal & means uncertainty.
Generally across organisations, non-programmed decisions are made by top management, where as programmed decisions are the responsibility of people lower down the ladder.
Corporate strategy
So corporate level strategy is concerned with:-
- Overall purpose and scope of the organisation
- Adding value to shareholder investment
- Portfolio issues
- Resources allocation between Strategic Business Unit (SBUs)
- Structure and control of SBUs
- Corporate financial strategy
Business strategy
Strategic Business Unit (SBU) level strategies are concerned with:-
- Competitive strategy
- Developing market opportunities
- Developing new products/services
- Resource allocation within the SBU
- Structure and control of the SBU
Operational strategy
Operational strategy is concerned with:
- The integration of resources, processes, people and skills
- The implementation and realisation of corporate business strategy
Mintzberg –the strategy concept:
- Strategy as a plan – a consciously intended course of action
- Strategy as a pattern – a stream of actions
- Strategy as a position – location the organisation within an environment
- Strategy as perspective – as a way of perceiving the world
4Ps (again) Plan, Pattern, Position, Perspective
Explanation of strategy formulation
There are several explanations of strategy formulation, strategy as:
- Managerial intent
- Outcome of cultural and political processes,
- externally imposed
Rational decision making process
The notes also outline a rational decision making process that goes:
- identify problem
- determine alternative courses fo action
- choice criteria and select optimal course of action
- implement
- monitor and evaluate
Alternative models of decision making
There is also discussion of alternative models of decision making:
- “Bounded rationality”
- “Satificing “
- “Logical incrementalism”
- “Muddling Through”
- Political
- Cultural
Strategy formulation: Planned versus emergent
“Strategy deals with the unknowable, not the uncertain… hence logic dictates that one proceed flexibly and experimentally from broad concepts toward specific commitments, making the latter concrete as late as possible in order to narrow the bands of uncertainty and to benefit from the best available information. This is a process of ‘logical incrementalism’… [it] is not ‘muddling’… it is conscious, purposeful, proactive, good management.” (Quinn 1988b:104)
Strategy Formulation
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Strategy Development
Strategy Formulation (Burgelman and Sayles, 1986: 13)
“Understandably we think of strategy formulation as top management work… But in the high-technology world, strategy often revolves around the innovation activities of relatively low-level technical and business people. To be sure, their decisions will require ratification by top management. Nevertheless… the reality is that those closer to the emerging technology will seek to define the business opportunity”
The constraints to strategic choice
- Distinction between ‘environmental and ;action determinism’ Whittington (1998)
- ‘CoreRigidities’ – core competences can become core-rigidities’ if they dominate and shape management vision and the development of organisational skills (Leonard-Barton 1995)
- ‘Zones of Manoeuvre’ – “Contexts contain constraints as well as zones of manoeuvre” (Clark 2000:297)
Challenges of strategic management
- The need to manage complexity and ambiguity
- The need to conceptualise options and issues
- The requirement to reconcile the influences of a changing environment, stakeholder expectations and resource capabilities
- To need to identify or create strategic opportunities
- And manage change
Competing paradigms
- Structure – Conduct – Performance Paradigm: Strategy is shaped by the structure of the industry in which the company operates i.e. Environment-Led
- Resource Based Value Paradigm – Strategy is shaped bya focus on company-specific assets that provide a company with competitive advantage i.e. Resource-Led.
Comparing Paradigms
| Aspect of Strategy | Environmental-Led ‘Fit’ | Resource-Led ‘Stretch’ |
| Underlying basis of strategy | Strategic fit between market opportunities and organisation’s resources | Leverage of resources to improve value for money |
| Competitive advantage through | “Correct” positioning. Differentiation directed by market need | Differentiation based on competences suited to or creating market need |
| How small players survive | Find and defend a nich | Change the ‘rules of the game’ |
| Risk Reduction through… | Portfolio of products/businesses | Portfolio of competences |
| Corporate centre invests in … | Strategies of divisions or subsidiaries | Core competences |
Porters Five Forces
- Rivalry among competitors
- Potential entrants (threat of new entrants)
- Substitutes (threat of substitute products/services)
- Suppliers (bargaining power of suppliers)
- Buyers (bargaining power of buyers)
Competitive rivalry is high when:
- Entry is likely
- Substitutes threaten
- Buyers or suppliers exercise control
- Competitors are in balance
- There is slow market growth
- Global customers increase competition
- There are high fixed costs in an industry
- Markets are undifferentiated
- There are high exit barriers
Threat of entry is dependent on barriers to entry such as:
- Economies of scale
- Capital requirements of entry
- Access to distribution channels
- Cost advantages independent of size (e.g. the experience curve)
- Expected retaliation
- Legislation or government action
- Differentiation
Supplier power is high when:
- There is a concentration of suppliers
- Switching costs are lower
- The supplier brand is powerful
- Integration forward by the supplier is possible
- Customers are fragmented and bargaining power low
Buyer power is likely to be high when:
- There is a concentration of buyers
- There are many small operators in the supplying industry
- There are alternative sources of supply
- Components or materials are a high percentage of cost to the buyer leading to “shopping around”
- Switching costs are low
- There is a threat of backward integration
Threat of substitutes – substitutes take different forms:
- Product substitution
- Substitution of need
- Generic substitution
- Doing without
Portfolio Analysis: McKinsey GE Matrix (Market Attractiveness vs. Business Strength)
Factors that Affect Market Attractiveness
Whilst any assessment of market attractiveness is necessarily subjective, there are several factors which can help determine attractiveness. These are listed below:
- Market Size
- Market growth
- Market profitability
- Pricing trends
- Competitive intensity / rivalry
- Overall risk of returns in the industry
- Opportunity to differentiate products and services
- Segmentation
- Distribution structure (e.g. retail, direct, wholesale
Factors that Affect Competitive Strength
Factors to consider include:
- Strength of assets and competencies
- Relative brand strength
- Market share
- Customer loyalty
- Relative cost position (cost structure compared with competitors)
- Distribution strength
- Record of technological or other innovation
- Access to financial and other investment resources
In summary technology strategy is…
- The total pattern of decisions
- That shape the capabilities which determine
- The contribution of any type of technology
- To overall strategy
Technology, Strategy and Organisation (Day 3)
Patterns of Innovation and the Evolution of Technology & industries
Key questions
- What is a technological discontinuity and how might it be explained?
- What impact does technological discontinuity have on organizations, sectors, and regions?
- How might organizations survive such discontinuities?
- Are there links between economic and technological cycles?
Continuity vs. Discontinuity
| Continuity | Discontinuity |
Focus on innovation tied to an existing technology and related to its movement along an existing technological trajectory.
|
Focus on innovation that gives rise to a new technology and a shift to a new technological trajectory
|
Thomas Kuhn and continuity
Scientific Paradigm is a set of accepted scientific laws, theories, and practices – around which scientists coalesce. They provide the guidelines for research, unfluencing the ‘puzzles’ that are considered to be worthy of pursuit and those that are not. This process leads to the limitation of novelty and a focus on ‘the scope and precision with which the paradigm can be applied’.
‘Normal Science’ is actualization of paradigm achieved by extending the knowledge of those facts that increasing the extent of match between those facts and the paradigm’s predictions, and by further articulation of the paradigm itself.
Technological paradigms / regimes
Technological paradigm is the beliefs of engineers, in relation to ‘what is [considered ] feasible or at least worth attempting’ (Nelson & Winter 1977) and an ‘outlook’ and set of procedures which embody ‘strong prescriptions on the directions of technical change to pursue and those neglect’ (Dosi 1982),
| Concept | Proponent(S) | Definition | Orientation |
| Technological imperatives | Rosenberg (1969) | R&D is directed toward the imperfections of existing technology, such as bottlenecks in processes or weaknesses in products, which provide signals for prioritizing the R&D projects. Pursuing such ‘technological imperatives’ pushes a technology in a particular direction. | Inducements and signals |
| Technological regime | Malerba and Orseningo (1993) | “We defined technological regimes as combinations of opportunity and appropriability conditions and degrees of cumulativeness of technological advances… Opportunity conditions refer to the ease of innovation by would-be innovators, and are related to the potential for innovation of each technology. Appropriability conditions refer to the ability of innovators to protect their innovations from imitation, and therefore to reap profits from their innovations. Cumulativeness conditions refer to the degree to which new technology builds on existing technology.’’ | Inducements and signals |
| Technological paradigm | Dosi (1982) | “We shall define ‘technological paradigm’… as an ‘outlook’, a set of procedures, a definition of the ‘relevant’ problems and of the specific knowledge related to their solution… each ‘technological paradigm’ defines its own concept of ‘progress’ based on its specific technological and economic trade-off… [and as such] embodied strong prescriptions on the directions of technical change to pursue and those to neglect.’ | Cognitive |
| Technological regime | Nelson and Winter (1977) | “Our Concept is more cognitive, relating to technicians’ beliefs about what is feasible or at least worth attempting… the sense of potential of constraints, and of not yet exploited opportunities, implicit in a regime focuses attention of engineers on certain direction in which progress is possible, and provides strong guidance as the tactics likely to be fruitful.’ | Cognitive |
| Technological regime | Rip and Kemp (1998) Kemp et al. (1998), Ende and Kemp (1999) | ‘Technological regimes, in the way we use the term, are a broader, socially embedded version of technological paradigms,.’ (Kemp et al. 1998: 182). The notion of regime helps to focus the attention on the structure of which the actors and technologies are a part of… on rules and practices, embedded in a web of interrelations and ongoing trends as a backdrop… we are not saying… either individuals and companies are unimportant… [but they]… are equipped with a certain outlook, capabilities and role, which influences both what they will do and can do at any given time… the research activities of companies are shaped importantly by the problems of existing regimes and the accumulated knowledge, capital stock, established consumption patterns and the norms at the macro level | Socially embedded cognition |
| Socio-technical regime | Geels (2002) | ‘While the cognitive routines of Nelson and Winter are embedded in the practices and minds of engineers, these rules are [also] embedded more widely in the knowledge base, engineering practices, corporate governance structures, manufacturing processes and product characteristics. This widening also means that more social groups are taken on board… users, policy makers, societal groups, suppliers, scientists, capital banks etc. because the activities of these groups are also guided by rules, I will use the term ‘sociotechnical [ST] regimes’ to refer to the semi-coherent set of rules carried by different social groups… ST regimes thus function as {a} selection and retention mechanism.’ | Socially embedded cognition |
| Technological frame | Orlikowski and Gash (1994) Kaplan and Tripas (2008) | “A ‘technological frame’… captures how actors make sense of technology… specifically, technological frames shape how actors categorize a technology relative to other technologies which performance criteria they use to evaluate the technology… [it] guides the actor’s interpretation of what a technology is and whether it does anything useful… [they] do not spring up randomly, but rather are the encoding of… [an actor’s] prior history, including both idiosyncratic organizational experiences and industry affiliations… with industry associations, customer sets, competitive groups, user groups etc… Technological frames do not influence technologies directly but rather through the interpretive processes of these actors. Thus the interpretative process is the mechanism that connects technological frames to technological outcomes. | Socially embedded cognition |
The variety of actors involves in shaping a technological regime (Geels, 2002)
The link between technological paradigms and trajectories
“Technological regimes result in technological trajectories, because the community of engineers searches in the same direction… [they] create stability because they guide the innovative activity towards incremental improvements along trajectories.” (Geels, 2002:1259)
“Technological trajectories “reflect cumulative efforts… [that] will possess a highish degree of momentum in certain directions’, such that ‘switching from the existing paradigm… to another aparadigm can be extremely difficult and also expensive.” (Clark and Staunton, 1989:109)
The trajectory for microprocessor density
Thomas Kuhn and discontinuity
Anomalies = evidence that does not fit prevailing paradigm. The persistent emergence of anomalies and the accumulation of adjustments to accommodate them, gives rise to increasing complexity and discrepancies within the prevailing theories of a field, whilst reducing their accuracy.
Crisis = scientists begin to lose faith in the current paradigm and start to consider alternatives.
‘Extraordinary Science’ = a change in attitude to the existing paradigm that manifests itself in a willingness to be more experimental and less constrained by the paradigm, by discontent, debate and disagreement as well as a rise of competing versions, of the ‘core’ theories and laws.
| Technological discontinuity – a shift from the S-Curve of an old technology (on the left) to the S-Curve of a new technology (on the right) (Foster, 1986:102) | Technological discontinuity in the computer industry |
| Man-made fibres | Combustion |
Technological discontinuity
“Creative Destruction is the essential fact about capitalism… it is not [price] competition which counts but the competition from… the new technology… competition which strikes not at the margins of the profits, of existing firms but at their foundations and their very lives.” (Schumpeter, 1942: 83-4).
“Those rare, unpredictable innovations which advance a relevant technological frontier by an order of magnitude and which involve fundamentally different product or process design and that command a decisive cost, performance, or quality advantage over prior product forms.” (Tushman and Rosenkopf, 1992:318).
Sources of discontinuity
| Triggers / sources of discontinuity | Explanation | Problems posed |
| New markets | Most markets evolve through a process of growth, or segmentation. But at certain times completely new markets emerge which cannot be analysed or predicted in advance or explored through conventional market research / analytical techniques. | Established players don’t see ti because they are focused on their existing markets. Players may discount it as being too small or not representing their preferred target market. Orgininators of new product may not see potential in new markets and may ignore them. |
| New technologies | Step change takes palce in product or process technology – it may result from convergence and maturing of several streams (e.g. industrial automation, mobile phones) or as the result of a single breakthrough (e.g. LED as white light source.) | Established players don’t see it because it is beyond the periphery of technology search environment. Tipping point may not be a single breakthrough, but convergence and maturing of established technological streams, whose combined effect is underestimated. “Not invented here” effect – new technology represents a different basis for delivering ‘value’ – e.g. telephone vs. telegraphy. |
| New political rules | Political conditions which shape the economic and social rules may shift dramatically – for example, the collapse of communism meant an alaternative model, and many ex-state firms coulnt modify their ways of thinking | Old mindset about how business is done is challenged and established firms fail to understand or learn new rules |
| Market Exhaustion | Firms in mature industries may need to escape the constraints of diminishing space for product and process innovation and the increasing competition of industry structures by either exit or by radical reorientation of their business | Current system is built around a particular trajectory and embedded in a steady-state set of innovation routines which mitigate against widespread search or risk taking experiments. |
| Sea change in market sentiment or behaviour | Public opinion or behavior shifts slowly and then tips over into a new model – for example, the music industry is in the midst of (technology-enabled) revolution in delivery systems. | Established players don’t pick up on it or persist in alternative explanations – cognitive dissonance – until it may be too late. |
| Deregulation / shifts in regulatory regime | Political and market pressures lead to shifts in regulatory framework and enable the emergence of a new set of rules – e.g. liberalization, privatization or deregulation | New rules of the game but odl mindsets persist, and existing player is unable to move fast enough or to see new opportunities opening up. |
| Fractures along ‘fault lines’ | Long-standing issues of concern to a minority accumulate momentum (sometimes through the action of pressure groups) and suddernyl the system switches / tips over – for example, social attitudes to smoking or health concerns about obesity levels and fast-foods | Rules of the game suddernly shfit and then new pattern gathers rapid momentum, wrong-footing existing players working with old assumptions. Other players who have been working in the background developing parallel alternatives may suddernly come into the limelight as new conditions favour them |
| Unthinkable events | Unimagined and therefore not prepared for events which – sometimes literally – change the world and set up new rules fo the game | New rules may disempower existing players or render competencies unnecessary |
| Business model innovation | Established business models are challenged by a reframing, usually by a new entrant who redefines/reframes the problem and the conseuquent ‘rules of the game’ | New entrants see opportunity to deliver product/service via new business model and require rules – existing players have at best to be fast followers |
| Shifts in ‘techno-economic paradigm’ – systemic changes which impact whole sectors or even whole societies | Change takes place at system level, involving technology and market shifts, This involves the convergence of a number of trends, which results in a ‘paradigm shift’ where the old order is replaced. | Hard to see where new paradigm begins until rules become established. Existing players tend to reinforce their commitment to old model, reinforce their commitment to the old model, reinforced by ‘sailing ship’ effects. |
| Architectural innovation | Changes at the level of the system architecture rewrite the rules of the game for those involved at component level | Established players develop particular ways of seeing and frame their interactions – for example, who they talk to in acquiring and using knowledge to drive innovation – according to this set of views. Architectural shifts may involve reframing but at the component level it is difficult to pick up the need for doing so – and thus new entrants better able to work with new architecture can emerge. |
Competence-destroying and enhancing discontinuities
Abernathy and Clark (1985) distinguish between:
Competence-destroying discontinuities that “significantly advance the technological frontier, but with a knowledge, skill, and competence base that is inconsistent with prior know-how”
Competence-enhancing discontinuities that “significantly advance the state of the art yet build on, or permit the transfer of, existing know-how and knowledge.
The cycle of technological development and discontinuity (adapted from Anderson and Tushman, 1991:47)
Technological evolution and fragmentation in telegraphy
The Management Implications of Technological Fragmentation
Proliferation of new technologies causes:
- Increasingly stretched resources;
- Eventually not possible to be competent in all areas of technology in-house;
- Brings about the need for technology transfer, licensing, and / or collaboration.
Transition and transformations in technological regimes
- pressure from above (‘sociotechnical landscape’)
- pressure from below (‘niches’);
- pressure from within (sector); and
- pressure from outsite (new science or other sectors)
The sources of pressure in changing a technological regime
Main actors and (inter)actions in transition pathways
| Transition pathways | Main actors | Type of (inter)actions | Key words |
| 1. Transformation | Regime actors and outside groups (social movements) | Outsiders voice criticism. Incumbent actors adjust regime rules (goals, guiding principles, search heuristics) | Outside pressure, institutional power struggles, negotiations, adjustments of regime rules |
| 2. Technological substitution | Incumbent firms versus new firms | Newcomers develop novelties, which compete with regime technolgies | Market competition and power stuggles between old and new firms |
| 3. Reconfiguration | Regime actors and suppliers | Regime actors adopt component-innovations, developed by new suppliers. Competition between old and new suppliers | Cumulative component changes, because of economic and functional reason. Follow by new combinations, changing interpretations and new practices |
| 4. De-alignment and re-alignment | New niche actors | Changes in deep structures create strong pressure on regime. Incumbents lose faith and legitimacy. Followed by emergence of multiple novelties. New entrants compete for resources, attention and legitimacy. Eventually one novelty wins, leading to destabilization of regime | Erosion and collapse, multiple novelties, prolonged uncertainty and changing interpretations, new winner and restabilisation |
Economic and innovation long-waves
- Far broader scope in relation to time, technology, and geography.
- Represent attempts to maps cycle of economic performance and innovation.
- Explores the possible symbiotic relationships between technological and economic systems.
Economic long waves (also known as ‘Kondratiew waves’)
e.g.
The Policy Implications of Schumpeterian Waves
- Depends on acceptance of either the ‘prosperity-pull’ or ‘depression trigger’ hypothesis for the stimulus of radical innovation.
- Recovery cycles arise from the dissemination of key new or ‘sunrise’ technologies.
- Need to identify potential key ‘sunrise’ technologies and invest in basic research at national level is crucial, since competence around emerging technologies promotes future economic performance.
- As existing competences in ‘sunset’ technologies become obsolete, this can signal a shift in economic power between nations (i.e. through discontinuity).
Concluding comments
- The emergence and preservation of scientific and technological paradigms and technological are social phenomena.
- Technological paradigms nad technological trajectories are inter-related.
- Scientific and technological discontinuities can either enhance or destroy competence at the level of organization.
Innovation has been found to cluster at specific phases of the economic cycle, although there are competing explanati
Technology, Strategy and Organisation (Day 2)
Session 2-2
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Session 2-3
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Innovation and the firm: Why innovate
- Strong correlation between market performance and new product launches
- Top 20% of innovative firms create 4x shareholder value than bottom 20%
- Key to sustaining performance and competitive advantage, since innovation and technological change are principal driers of comopetition across many sectors
- Innovation is a great equalizer, eroding the competitive advantage of well established firms and propelling others forward
- An alternative to M&A (i.e. through organic growth)
| If innovation is only seen as… | The result can be… |
| Strong R&D capability | Technology which fails to meet user needs and may not be accepted |
| The province of specialists | Lack of involvement by others, and a lack of key knowledge and experience input from other perspectives in the R&D |
| Understanding and meeting customer needs | Lack of technical progression, leading to inability to gain competitive edge |
| Advances along the technology frontier | Producing products or services which the market does not want or designing processes which do not meet the needs of the user and whose implementation is resisted |
| The province only of large firms | Weak small firms with too high dependence on large customers. Disruptive innovation as apparently insignificant small players seize new technical or market opportunities |
| Only about breakthrough changes | Neglect of the potential of incremental innovation with an inability to secure and reinforce the gains from radical change because the incremental performance ratchet is not working well |
| Only about strategically targeted projects | Many miss out on lucky ‘accidents’ which open up new possibilities |
| Only internally generated | The ‘not invented here’ effect, where good ideas from outside are resisted or rejected |
| Only externally generated | Innovation becomes simply a matter of filing a shopping list of needs from outside and there is little internal learning or development of technical competence |
| Only concerning single firms | Excludes the possibility of various forms of inter-organizational networking to create new products, streamline shared processes, etc. |
Types of innovation
| Innovation type | Definition | Examples |
| Product | A novel tangible artifact, including materials and components, those based on high as well as low technology, and those aimed at individuals or organisations | From high-tech (e.g. computers) to low tech (e.g. ready-made meals, and from consumer products (e.g. mobile phones) to industrial products (e.g. new building equipment or materials) |
| Service | Intengible and involving the undertaking of a novel activity for another individual or organisation | Online grocery shopping and home delivery offered by supermarkets |
| Process | Generally concerns novel technological processes, as distinct from organizational processes | DNA fingerprinting, frequently used in policy work and paternity cases |
| Organizational/administrative | Novelty in organizing or the undertaking of processes or tasks within an organization | TQM, BPR, ‘hot-desking’ and virtual team-working |
| Delivery | Novelty in the delivery of products or services, for example, from provider to consumer | Mobile breast cancer screening facilities, which shift provision out of hospitals and into local communities |
| Marketing | Novelty in the marketing of products of services, for example | ‘Viral’ marketing or product placement in films |
| Business model | Novelty in the ‘driers’ of an organisation’s activities or strategy | Low-cost airlines, as typified by EasyJet, and Internet firms, such as Google, which generate revenue through advertising rather than services they provide |
| Institutions | The establishment of an organization with a novel role, whether within the private, public or non-for profit sectors | At their formation, institutions such as the United nations , the world trade organization, and the British National Health Service |
Alternative perspectives on products and services
| Perspective | Type | References from literature |
| Product Dominant | Traditional perspective. Goods Dominant Logic’ (Value-in-Exchange) | Implicit in much innovation literature. |
| Product Plus Service | Extention of traditional perspective | Explicit in much marketing literature |
| Service orientated | Servitization | Vandermerwe and Rada (1988) |
| Service dominant | Service Dominant Logic (value in use) | Vargo et al (2008) |
| Product and service dimensions | Dimensions of innovation | Hartley (2005) |
The Servitization Trajectory
What do we mean by Innovation / Innovative
- A new idea / product / service (i.e. an output)
- An expression of novelty
- It implies a process
- An organizational capability
Incremental versus radical innovation
Degree of Novelty
- Radical = replacing versus
- Incremental = modifying / improving
Novel to whom?
- Variations along supply-chain
- Variations between sectors
- Variations between nations
Assessing the degree of novelty of an innovation
- Embedded characteristics: objective measure
- Benefit to the user or adopter through usage or consumption: subjective measure
- Breadth of diffusion (e.g. geographically, applications, industrial sectors)
- Impact on organizations capabilities and competences
- Time elapsed since market launch
Component versus Architectural Innovation
- Component innovation = innovation in a physically distinct portion of the product, service, or process that performs a well-defined function
- Architectural innovation = innovation that changes the way in which the different components are ‘linked together’
Core Concepts vs. Linkages between Core Concepts and Components
A typology of innovation based on the reconfiguration of existing technologies (Henderson and Clark, 1990:12)
How do we measure the ‘success of an innovation’?
- Financial criteria e.g. speed of return on investment
- Market criteria e.g. speed of breadth of diffusion
- Technical criteria e.g. high performance or ‘elegance’
- Strategic criteria e.g. the building of new competence
- Process criteria e.g. time to market
- BUT… successful to whom?
Innovation as an interactive process
- Innovation is rarely a one-off event
- Radical innovation is typically followed by a series of incremental innovations (sometimes referred to as ‘re-innovation’)
- Radical innovation typically requires the ‘unlearning’ of earlier knowledge and practices (sometimes referred to as ‘exnovation’)
- Success can arise from failure
Innovation as an interactive process (Rothwell and Gardiner 1983)
The ‘substance’ of innovation strategy
- Selection of the technologies in which the organisationwill specialize
- Proximity to the state-of –the-art in these selected technologies
- Relative emphasis on basic research, applied research, & development
- Degree to which technology is developed internally or sourced externally
- Aggregate levels of investment in research and development
- Degree to which R&D will be centralized or decentralized
- Selection of the mechanisms for protecting R&D investments (e.g. patents).
- Selection of alternative routes for appropriating the benefits of innovation (e.g. patents)
Session 2: Exploring the Dimensions of Technology Strategy
Key Questions
- Is it best to be first-to-market or a follower?
- To focus on incremental or radical innovation?
- To collaborate or not?
- To undertake R&D in-house or outsourcing?
- To de/centralize R&D / NPD?
- Either/or or and/both strategic decisions
Classification of ‘timing to market’ innovation strategies
| Classification Maidique and Patch (1988) | Porter (1985:181-91) | Freeman & Soete (1997:265-85) | Miles and Snow (1978) | Strategic aim of strategy |
| ‘first to market’ or ‘leader’ strategy | Leadership strategy | Offensive strategy | Prospector strategy | To be first into the market with an innovation in order to gain first-mover advantages, such as monopoly profits. |
| ‘Second to market’ or ‘fast follower’ strategy | Defensive strategy | Analyser strategy | To lear from the mistakes of the first-mover and enter the market with an improved innovation in the early stages of the life cycle | |
| ‘Late to market’ or ‘cost minimization’ strategy | Followership strategy | Imitative strategy | Defender strategy | To enter the market later in the life cycle, once demand has grown sufficiently to allow significant economies of scale to be achieved. The aim is to gain cost advantage over competitors. |
| ‘Market segmentation’ or ‘specialist’ strategy | Opportunist strategy | To innovate for a particular application/niche. May occur at various stages of the life cycle | ||
| Dependent strategy | To accept a subordinate role to its )often much larger) customers, who initiate the innovation process and provide the technical specifications | |||
| Traditional strategy | Reactor strategy | To continue much as before. Little emphasis on innovation and little capability to innovate. |
Porter argues that the adoption of a leadership or followership strategy by an organization is based on the assessment of three factors;
- First mover advantages
- First mover disadvantages
- The degree to which a lead can be sustained.
First mover advantages are derived from three sources;
- Technological leadership
- Pre-emption of assets
- Buyer switching costs
Offensive / First-to-market / Leadership innovation strategy
This strategy is designed to achieve technical and market leadership by keeping ahead of competitors
- Must take long-term view and accept high risks
- Emphasis on flexibility over efficiency
- Emphasis on stimulating primary demand
- Require competencies in developing primary demand in markets
- Patent protection important
- Seeking premium profits to cover heavy R&D costs
- Knowledge intensive strategy
- Requires state of the art R&D
- Substantial investment
Defensive / Second-To-Market Innovation Strategy
With this strategy the organization does not wish to be first nor left behind, but also not ‘carbon copy’
- Lower risk as market opened up
- Possibility of learning from mistakes of others
- Emphasis on stimulating secondary demand
- Requires rapid commitment of capital
- Must be responsive and adaptive
- Need to combine elements of flexibility and efficiency
- Also a knowledge intensive strategy
- Requires flexible and responsive advanced R&D
- Rapid mobilisation of capital
Imitative / Late-to-market / followership innovation strategy
With this strategy the organization does not aspire to keep up with the state-of- the art, but adopts established technologies
- Adopt established technology, Often through licenses
- Compete on costs through mass production
- Requires skill in process development
- Emphasis on efficiency and control
- Requires large-scale production for economies of scale
- Requires access to large amounts of capital
- Requires a focus on minimizing distribution costs
First-to-market: an appropriate strategy?
Advantages
- Monopoly profits
- Technological leadership
- Buyer switching costs
- Industry standards
- Patent protection
- Pre-emptive ‘capture’ of scarce resource
- Raise barriers to entry
Disadvantages
- Pioneering costs
- Follower ‘free-riding’
- May face burden of regulatory approval
- May face burden of new infrastructure
- Likely to face greater risk and uncertainty
| Product | Innovator | Follower | The winner |
| Jet airliner | De Haviland (Comet) | Boeing (707) | The winner |
| Float glass | Pilkington | Corning | Leader |
| X-ray scanner | EMI | General Electric | Follower |
| Office PC | Xerox | IBM | Follower |
| VCRs | Ampex/Sony | Matsushita | Follower |
| Diet Cola | R.C. Cola | Coca-cola | Follower |
| Instant camera | Polaroid | Kodak | Leader |
| Pocket calculator | Bowmar | Texas instruments | Follower |
| Microwave oven | Raytheon | Samsung | Follower |
| Plain-paper copier | Xerox | Canon | Not clear |
| Fibre-optic cable | Corning | Many companies | Leader |
| Videogames consoles | Atari | Sony/Nintendo/Microsoft | Followers |
| Disposable diaper | Proctor and Gamble | Kimberley-Clark | Leader |
| Web browser | Netscape | Microsoft | Follower |
| MP3 players | Diamond multimedia | Apple/Sony/others | Followers |
Paradoxical nature of strategy
“At the heart of every set of strategic issues, a fundamental tension between apparent opposites can be identified… Each pair of opposites… seem to be inconsistent, or even in compatible, with one another… If firms are competing, they are cooperating. If firms must comply to the industry context, they have no choice. Yet, although these opposites confront strategists with conflicting pressures, strategists must somehow deal with them simultaneously.” (De Wit and Meyer, 2004:13)
Different types of tension in organizational decision-making
- Puzzle = challenging problem with an optimal solution.
- Dilemma = vexing problem with two possible solutions, neither of which is logically the best. They confront problem solves with diffulcut either-or choices.
- Trade-off = problem situation in which there are many possible solutions, each striking a blance between conflicting pressures
- Paradox = a situation in which two seeming contradictory, or even mutually exclusive, factors appear to be true at the same time. It is a problem with no real solution, or one which is internally consistent. Thus paradox can be characterized as a ‘both-and’ rather than ‘either-or’ problem, where e the solution requires the accommodation of opposites.
Paradoxes in the management of innovation
The following are in constant tension:
- Planned versus Emergent (strategy & projects)
- Top-down versus bottom-up (strategy)
- Formal versus informal (structures & processes)
- Exploration verssu exploitation of ideas
- Radical versus incremental innovation
- Internal (in-house versus external (outsourcing)
Managing multiple innovation strategies
Organizations may follow:
- Different strategies at different times
- Different strategies in different sectors
- Different strategies in different divisions
Session 4: Patterns of Innovation and Evolution of Technology and Industries
Key questions
- What patterns exist in the life of a technology and/or innovation?
- What models exist to help explain and map such patterns?
- To what extent are such models useful?
- What are the implications of strategy-making
Models to be discussed
- The ‘Technology Life Cycle’ (TLC) model – this maps the sales volume trajectory of a technology over time.
- The ‘Technology S-curve’ model – this maps the technical performance trajectory of a technology in relation to research and development (R&D) effort.
- The ‘Product-Process Cycle’ model – this maps the interrelated trajectories over time of product and process innovations within a sector.
- The ‘Dominant Design’ model – this maps the emergence of a dominant design of an innovation or technology over time.
- The ‘Diffusion Curve’ model – this maps the diffusion trajectory of an innovation ortechnology over time.
Features of models
- All of the models are dynamic in nature;
- Each can be grouped according to whether it attempts to map the ‘market’ performance trajectory or the technical performance trajectory of a technology;
- Each typically adopts either a cumulative or a non-cummulative approach to expressing and mapping progress
- Each model may be classified in relation to the four ‘motors of change’
The ‘Technology Life Cycle’ (TLC) Model
Mapping the sales volume trajectory of a technology over time
The ‘Technology S-Curve’ model
Mapping the technical performance trajectory of a technology in relation to research and development (R&D) effort.
Initial effort doesn’t provide performance returns due to the ground work, back ground knowledge and research. Performance is measured against a metric related to the product rather than knowledge accumulated.
Exponential growth
S-Curve Model Examples
| S-Curve for the automobile | Series of shifting S-Curves of Semiconductor Technology |
| S-curve for Intel microprocessor speed | S-curve for Intel microprocessor density |
Over view of the S-Curve model
| Key Features | The model highlights the changing relationship between R&D effort (inputs) and improvements in the technical performance of a technology (outputs) over its lifecycle. The ‘technical limit’ and the technical potential (i.e. the gap between the current position of the curve of an organization or the state-of the-art and the technical limit) are key elements of the model. |
| Implications for managing innovation | Early on the life of a technology, patience is required, because R&D effort yields are low as the organization and sector build foundational knowledge and skills. The diminishing returns on R&D are important for signaling the narrowing of technical potential and the approach of the technical limit, and thus are key for highlighting the need to look for alternative technologies |
| Critique-limitations | It represents a fairly crude input-output model, which black boxes’ important aspects of process and context. It is also very difficult to determine or measure with any accuracy they key elements of the model, such as the technical limit or the current position on the curve of the organization or state-of-the-art |
| Critique-complications in application | The important performance criteria for a technology are subject to change and are often in tension with one another. A technology may be compromise of |
The ‘Product-Process Cycle’ Model
Mapping the interrelated trajectories over time of product and process innovations within a sector
Innovation characteristics linked to phases of the product-process cycle
| Innovation characteristic | Fluid pattern | Transitional phase | Specific phase |
| Competitive emphasis placed on… | Functional product performance | Product variation | Cost reduction |
| Innovation stimulated by… | Information on user needs, technical inputs | Opportunities created by expanding internal technical capability | Pressure to reduce cost, improve quality, etc. |
| Predominant type of innovation | Frequent major changes in products | Major process innovations required by rising volume | Incremental product and process innovation |
| Product line | Diverse, often including custom designs | Includes at least one stable or dominant design | Mostly undifferentiated standard products |
| Production processes | Flexible and inefficient – aim is to experiment and make frequent changes | Becoming more rigid and defined | Efficient, often capital intensive and relatively rigid |
The reverse product-process cycle
An overview of the product-process cycle model
| Key Features | The product-process cycle incorporates three phases, each with particular patterns of innovation, competition, industry structure, and organization
During the life cycle, there is a shift from product to process innovation, major improvement to incremental innovation, entrepreneurial to large ‘mechanistic’ organizations, and competition based on differentiation to that based on cost. |
| Implications for managing innovation | At the organizational level, each phase of the model requires a different strategic orientation, centred on the balance between innovation and efficiency; and a different mode of organizing, concerning the balance between the ‘organic’ and mechanistic’ modes as well, as different competences and resources. At the sectoral level, different market conditions and competitive pressures characterize each phase of the model. |
| Critique-limitations | The original model is ‘unidirection’ and ‘irreversible’, however, subsequent versions allow for de-maturity during the ‘life course’ rather than ‘life cycle’ of a technology. The model has little efficacy when applied to a service sector, hence the development of reverse product-process cycle. It underemphasizes problems of transition for incumbent organizations |
| Critique-complications in application | Identifying the revolutionary transition between phases of the model is problematic, in part due to the ‘fuzziness’ of their boundaries. It is difficult to apply to complex products, such as computer, automobiles, and aircraft, which are comprised of nested levels of technology. |
The ‘Dominant Design’ Model
Mapping the emergence of a dominant design of an innovation or technology over time.
Stretching the dominant design through incremental innovation
Incremental innovation in:
- Handlebar arrangement
- Saddle position
- Huge gear
- Short wheelbase
- Riding position
… all lead to a very aerodynamic bicycle
Factors influencing the emergence of a dominant design
- Relative marketing and advertising expenditure
- Relative scope and scale of the distribution channels
- Relative brand (corporate and product) strength
- Degree of standard setting – influenced by regulation and/or industry cooperation
Shaping industry standards – the case of HDDVD and Blu-Ray
<insert notes>
Management implications of the emergence of a dominant design
- Diffusion mechanisms and standards setting play an important part in the emergence of a dominant design;
- Late entrants to the market are unlikely to be able to comete directly with the dominant design;
- Innovation opportunities exist in stretching the dominant design (the improvement of components, accessories and material) or developing niches.
An overview of the dominant design model
| Key features | In the early phase of a new technology, a range of divergent designs are present. After a time, however, there is a ‘shakeout’ as the market converges around one or a small number of designs that eventually dominate. Opportunities remain in relation to ‘stretching’ the design through innovation in materials and components, or in the development of new design families |
| Implications for managing innovation | The emergence of a dominant design or industry standard in a market signals the ending of a period of technological turbulence and competitive ferment. With the emergence of a dominant design comes the narrowing of opportunities for new entrant, and the need for incumbent organizations to influence the choice of design in the market and/or the industry standard. |
| Critique – limitations | The model is ‘unidirectional’, despite the recognition of niche opportunities. The model itself says little about why or how dominant designs emerge. But subsequent research has highlighted non-technological factors, such as developing loyalty among the user base, building wide distribution networks, and influencing standard-setting processes. |
| Critique – complications in application | It is time-consuming to apply to complex products, such as computer, automobiles, and aircraft, which are comprised of nested levels of technology; dominant designs may exist within each of these levels, and emerge ad different times and rates. |
The ‘Diffusion Curve’ Model
Mapping the diffusion trajectory of an innovation or technology over time.
Foster 1986
The innovativeness dimension, as measured by the time at which an individual adopts and innovation or innovations, is continuous. The innovativeness variable is partitioned into five adopted categories by laying off standard deviations from the average time of adoption (x). The model is useful for reporting, but not for forecasting.
- Innovators – Recognise the early market needs
- Early Adopters – Centre of communication ‘Free advertising’
- Early Majority – Momentum building
- Late Majority – Followers
- Laggards – Don’t care, objectors
Factors influencing diffusion innovation characteristics
- Relative advantage – the degree to which an innovation is perceived by potential adopters to be ‘better’ than alternatives;
- Compatibility – the degree to which an innovation is perceived by potential adopters to be aligned or consistent with their prevailing needs, values or experience
- Complexity – the degree to which an innovation is perceived by potential adopters to be difficult to understand or use;
- Trialability – the degree to which an innovation can be experimented with by potential adopters prior to adoption;
- Observability – the degree to which the benefits of an innovation can be observed by potential adopters
EXAMPLE: Diffusions and the case of virtual reality
Limitations
- No accounting for external factors (social, political, fuel prices, regulators)
- No interdependence
- Reporting – not forecasting
- Performance improvements / Functionality increase
Transitions between
Innovators -> Early Adopters
- Relevant marketing / advertising
- Distribution Channels
- Policy and Standards
- Brand Strength
- Social Networks
Different shapes for the product life cycle
An overview of the diffusion curve model
| Key features | The diffusion curve represents the typical diffusion pattern for an innovation. The model identifies five adopter categories, as well as five innovation attributes, which help to identify features of both users and innovations that impact the speed of diffusion/adoption of an innovation. |
| Implications for managing innovation | Different adopter categories have different roles to play in the diffusion adoption process, as well as in the innovation process. Shaping the innovation with regard to the five innovation attributes identified will help promote the rate of diffusion/adoption of an innovation. |
| Critique-Limitations | Without reliable market data for the potential groups that are likely to adopt the innovation, and thus the overall potential number of adopters, the diffusion curve model essentially becomes relegated to a reporting tool rather than a forecasting tool. The model does not explicitly take account of subsequent major improvements in the performance, cost, or functionality of the innovation that might alter the pattern of its diffusion. |
| Critique – complications in application | The diffusion pattern of ‘interactive’ innovations, such as the telephone, fax, email, and teleconferencing, differs from the diffusion pattern of discrete or non-interactive innovations. An innovation may be adopted, rejected, adopted and adapted, or adopted and then later abandoned. |
An overview of the key features of the models
| Model | Introduction stage | Growth stage | Maturity stage |
| Technology S-Curve | The rate of improvement in the technical performance of a technology is slow, because much of the R&D effort is required to develop the basic knowledge underpinning the technology. As a result, the technical performance returns from R&D effort are low. | As knowledge about a technology accumulates and is diffused and applied, the rate of progress in the improvement of a technology begins to accelerate. Here, the technical performance returns from R&D effort are high. But after the ‘point of inflection’ (the middle of the S-Curve) at which the yield is at its highest, the innovator begins to suffer from decreasing returns. | The yield on R&D effort begins to decline at an increasing rate as it approaches the ‘natural’ or ‘technical’ limits of the technology. |
| Product-process cycle | Associated with the emergence of a new market need or a new way of meeting an existing market need. Initially, in meeting this need, there is often vagueness concerning the appropriate performance criteria of the new product offering. As a result this phase is characterized by frequent major changes to products as well as diversity of products in the market place. | In order to meet rising demand for the new product, there is a shift away from frequent major product innovation to major process innovation. This phase is associated with emergence of one or a small number of stable product designs to allow significant production volumes, and the development of ‘islands of automation’. | There is a focus on cost reduction and product quality, and a shift towards incremental product and process innovation to bring about such improvements. The gradual and cumulative impact of ‘countless’ minor incremental product and process innovations can have a dramatic impact on productivity. |
| Dominant Design | The emergence of a new technology leads to a great variety of competing innovations with divergent designs in delivering the technology to the market place | There is a shakeout among the divergent set of design initially available in the marketplace, followed by the evolutionary improvement of a narrow range of ‘composite’ designs. | As the market matures, an even narrower set of consolidated designs emerges, with the possibility of the emergence of a single dominant design. Once establish in the market place the dominant design can then be ‘stretched’, through the development of new materials, components, and accessories, or through the development of the design families |
| Diffusion curve | ‘Innovators’, with a keen interest in new idea, are the first to adopt and innovation. They are a small minority of the overall group 9i.e. only about 2.5%). Early adopters’, unlike innovators are embedded in their social system, they are ‘localities’ rather than ‘cosmopolites’. This group represents a large proportion of the overall group, although still a minority (i.e. around 13.5%) | The ‘early majority’ are individuals who adopt an innovation just before the average person. They make up about one third of the overall group. Although they take long to deliberate before adopting or rejecting an innovation than innovation and early adopters, they have an important role to play in the diffusion process, through creating momentum in the diffusion of the innovation and social pressure on non-adopters to adopt, and help to build a critical mass | The ‘late majority’ are individuals who adopt innovations after the average person. They also make up about one third of the overall group. This group tends to be cautious or skeptical of new ideas. Often, peer pressure is an important stimulus for this group to adopt. ‘Laggards’ are the last to adopt. They constitute about one sixth of the overall group. They are generally suspicious of new ideas and change, and their point of reference tends to be the past. |
Conclusions
- Such models allow managers to view their industry from an historical and temporal perspective;
- They provide the language and tools for discussing the past, current, and future technological environment; an important prerequisite to the formulation of strategy
- However, such models are overly deterministic, and underplay the potential for organizations to influence the shape of, and speed of movement along, a trajectory;
- There is an over emphasis on the ‘supply-side’.
Extra reading: Managing and shaping innovation – the patterns of innovation within the life cycle of a technology
April Activity
This month has been insanely busy as University work and some industrial conferences eat all the time I have. The Technology Strategy and Organisation (TSO) module has an exam that requires some focused revision. It’s been years since I’ve had to do any kind of exam and while the theory of taking exams is still in there, the cramming doesn’t get any easier.
I also had the idea that the systems centre could become a great showcase of UK systems engineering and that an installation of Oblong, made famous by the film ‘Minority Report’ could be an interesting collaborative environment and ‘jewel in the crown’ for the centre; Oblong Industries g-speak spatial operating system
University
- EngD Lectures; Exam Revision Technology Strategy and Organisation (TSO) (Bath);
- Literature Review
- Find additional modules; Royal Hollaway Uni; Pen Testing & Security Management
- Academic Meetings; 7th, 21st April
- Supervision; 1 Rasmus student (Systems Engineering), 2 MSc Students (DoS, Modelling)
- Possible purchase of Oblong presentation system for Systems Centre as a collaborative environment
- RASMUS Student research, survey and draft paper
Company
For confidentiality I obviously snip the sensitive parts from this activity log, but try to give an idea or theme of what I get up to as an EngD research engineer. This month was traveling to/from conferences and cramming for the TSO exam.
OTHER
- Defence IT 2011 Conference
- InfoSec 2011 Conference
- Future Ideas generation
Other
- Public Engagement – System Centre day for GCSE/sixth form students
February Activity
I have found the library, so now progress on my project means getting a stack of books out and leaving them on my desk at work – that should fool people into thinking I read them. I was surprised to find some great books for my project, that seem to have made all the recommendations I have been thinking of, but are TEN YEARS OLD! Worse than that, I seem to be the second person to take these books out. First date was back in Feb 1991, and now I take them out in Feb 2011.
As my project can be a ‘roadmap’ of projects, I could replicate the work carried out that looked into current legislation requirements, existing policy, technology capabilities, organisational responsibilities, etc. I still need to keep in mind the academic rigour and contribution of new knowledge requirement of the EngD as it is easy to find interesting work to do. The fundamental component of the EngD is the PhD research. I could waste four years doing work for the company, but come away with nothing for the EngD (EngD:Loss). I could conduct a usual PhD project that churns out papers, but provides no value to the company – I would still get the EngD award, but the company wouldn’t see a return on investment and would not sponsor another EngD research engineer (EngD:Loss). To get the EngD:Win, is to find a balance that allows academic contribution, but also provides value to the company (usually some economic advantage through a new process/product/knowledge).
University
- EngD Lectures; 17th Feb Risk Perception, Psychology and Economics of Information Security
- EngD Coursework; Due 11th Feb
- Academic Meeting; 17th Feb,
- Arrange meeting with Elke Krahmann (UniversityofBristol) 4th Feb
- Literature Review
Company
- Cyber things
- System Engineering things

