SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Welcome to Business Strategy and Policy John A. Hengeveld week 2 tuesday

SCHOOL OF BUSINESS ADMINISTRATIONSCHOOL OF BUSINESS ADMINISTRATIONTECHNOLOGY COMMERCIALIZATION PROGRAMTECHNOLOGY COMMERCIALIZATION PROGRAM

Welcome toBusiness Strategy and Policy

John A. Hengeveld

week 2 tuesday


AGENDA

• Kitty Hawk Case

• Core Competency Article

• Innovators Solution, ch 3-5

• Brown&Eisenhart ch 1-3


Kitty Hawk

• What went wrong with Kitty Hawk??


Kitty Hawk viewed by Innovators Solution

• What type of innovation was Kitty Hawk?

• What architecture?

• What type of product definition research?


Congruence Model – Kittyhawk

Formal OutputsBalanced

ScoreCard:Financial

What real expectationsshould there be?

CUSTOMERInternalHow are

traditional DMD

customers served?

Learning and Growth

What is the learning plan for the group?

EnvironmentResourcesHistory

Formal Organizat

ion

StrongResourceCommitm

ent

Informal Organizatio

n-

TechnicalExcellence

CustomerNeeds Passion

People

Best of the best

Heavyweight

Team

Strategy

Critical Tasks

-$50 dumb

drive

Find new markets

Learn and Grow


The rest of DMD

Formal OutputsBalanced

ScoreCard:Financial

CUSTOMERInternal

Learning and Growth

EnvironmentResourcesHistory

Formal Organizat

ion

ResourceAllocatio

nIssues

Strong Sust

Innov Processes

Informal Organizatio

nStrong

culture of innovation

Strong culture of customer

commitment

People

Rest of the best

Key innovator

sout

Strategy

Critical Tasks

• -Maintain competitive technology

• Be performance leader for HP

solutions• Keep OEM relationship

strong


Technology CyclesR

ate

of I

nnov

atio

n

Time

Product innovation Process Innovation

Substitution EventDD DD


Types of Innovation andInnovation Streams

T&O, Winning Through Innovation, figure 7.3

InexpensiveMechanical Watch

Smaller, ThinnerMechanicalWatches

Swatch

ContinuousAim gunfire

First Watch

Quartz Watch

New

Existing

Mar

kets

IncrementalSmall Extensionsof ExistingTechnology

ArchitecturalReconfiguresExistingTechnology

DiscontinuousNew operating principles inCore Subsystems&/or DiscontinuousProcess innovation


Organizational CyclesThe success syndrome

FIT SUCCESS

Size and AgeInertia:StructuralCultural

Successin StableMarkets

Failurein MarketShifts


How did executive team perform?

Executive Team•Provide Clear, Simple Vision•Balance Multiple Architectures•Makes Bets on Shifting Innovation•Manage Ambidextrously

•Today/Tomorrow•Large/Small – Incremental/Discontinuous

Inc•Culture Promoting

Continuous Improvement•Incremental Change•Eliminate Variability

•Reward Volume & Cost

Arch•Culture Promoting

Linkage Across Units•Adding and Linking

Subsystems•Reward Integration

Disc•Culture Promoting

Breakthroughs•Many Small Failures

•Learn by Doing•Reward Experimentation

and Innovation


Kitty Hawk Viewed byBrown and Eisenhart


Innovators Solution Key PointsCh 3-5


IS: Ch 3

• The view of market segmentation analysis is central to the failure of disruptive technologies, or the vunerability to disruption of core businesses.

• Table 3-1 in the book


Extracting Growth from Non Consumption

• Target customers are trying to get a job done but .. They lack a simple inexpensive solution

• Customer compares disruptor with no solution at all.. Easy performance hurdle

• Deploy technology to make it foolproof• Create a whole new value network (whole

product)


IS F 4-3

High CommitmentRigid Plan

High CommitmentFlexible Plan

Low CommitmentRigid Plan

Low CommitmentFlexible Plan

Framing in the Venture Building Process

Opp

ortu

nity

Thr

eat

Fra

min

g in

the

Res

ourc

e A

lloc

atio

n P

roce

ss

Threat Opportunity


IS f Ch5-1

Time

Perf

orm

ance

Interdependent Architectures, I

ntegrated Companies

Modular Architectures, Nonintegrated companies

Range f SolutionsCustomersCanUtilize

Beat competitorswith functionalityAnd reliability

Beat competitors withspeed responsivenessAnd convenience


IS Ch 8

• Points of Executive Leverage in Strategy Making Process– Carefully control initial cost structure– Actively accelerate the process of finding a

viable strategy – discovery driven planning– Personally drive the balancing


Deliberate Planning

• Make assumptions about the future

• Define a strategy based on those assumptions and make financial projections

• Make decisions to invest based on financial projections

• Implement strategy to achieve financial results.


Discovery Driven Planning

• Make targeted financial projections

• What assumptions must be true in order for these projections to work?

• Implement a plan to learn- test critical assumptions and remove barriers which emerge

• Invest to implement the strategy


B&E Improvisation Survey

No Rules…………………… Many RulesFollowed…………………… IgnoredUndefined………………….. LockstepExpected…………………… ProblematicTargeted……………………. Distributed WidelyEnd Products……………….. ProcessesClear………………………... AmbiguousAlways…………………… NeverConstant…………………… InfrequentChanneled………………… Chaotic

There are:Rules are to be:Processes are:Change is:Responsibility is:Focus is on:Priorities are:.. they drive ResourceCommunication is:Communication is:


B&E Coadaptation

Frequent ………………… RareCorporate ………………… LowLevelClear ……………….. UndefinedTeam play ………………… Individual WinCommon ………………… Rare

X-Business collab is:.. Decisions are made:Roles of different bus:The Culture rewards:Reinventing the wheel:


B&EFive Forces Core

CompetenceGame

Theory

Competing

On the Edge

Assumptions Stable

Industry

Firm as bundle of competences

Dynamic

Oligopoly

Industry inRapid change

Goal Defensible position

Sustainable

advantage

Temporary

advantage

Continuous

Flow of adv.

Performance

Driver

Industry

structure

Unique

competencies

Right

Moves

Ability

To change

Strategy Pick Industry

Pick position

Shape firm

Craft vision

Build competencies to

match

Make the right

Competitive &

Collaborative moves

Gain the edge:

Time pace, shape

semicoherent,

Strat. direction

Success Profits Long Term

Dominance

Short Term

Wins

Continual

Reinvention


B&E Chapter 1

Playing the Improvisational Edge

Capturing Cross-BusinessSynergies

-Coadaptation

Gaining Advantagesfrom the Past-Regeneration

Winning TomorrowToday

-options-learning

Setting the Pace-time pacing

Time Pacing

Edge of Time

Edge of Chaos


Core Competency Article

• Frequently misquoted and mispurposed

• Why?

• What is the essential theme shown here?

Documents

SCHOOL OF BUSINESS ADMINISTRATION TECHNOLOGY COMMERCIALIZATION PROGRAM Welcome to Business Strategy and Policy John A. Hengeveld week 2 tuesday