Innovation Exam 1 (book)
copyright
(protects an original artistic or literary work) A property right protecting works of authorship
patent
(protects invention) A property right protecting a process, machine, manufactured item (or design for manufactured item), or variety of plant the right it is granted are applicable only in the country in which the patent is filed
trademark
(protects words or symbols) An indicator used to distinguish the source of a good
Risks of Championing
- A manager's role as champion may cloud judgment about the true value of the project - Managers may fall victim to escalating commitment and be unable (or unwilling) to admit that a project should be killed, managers who have invested their reputations and years of their lives in development projects may find it very difficult to cut their losses in much the same way that individuals tend to hold losing stock much longer than they should. - Seniority may also make others in firms unwilling to challenge the project champion even if it has become apparent that the project's expected value has turned negative
teams engaged in 3 primary types of boundary-spanning activity
- Ambassador activities - Task coordination activities - Scouting activities
Stage gate process (order)
- Discovery: Idea Generation Gate 1: Idea Screen - Stage 1: Scoping Gate 2: Does idea justify more research? - Stage 2: Build the business case Gate 3: Is the business case sound? - Stage 3: Development Gate 4: Should project be moved to external testing? - Stage 4: Testing and validation Gate 5: Is the product ready for commercial launch? - Stage 5: Launch Post launch review
3 main reasons that groups are less creative than individuals working on their own
- Fear of Judgment (creation is embarrassing) - Production Blocking - Feasibility Trumps Originality
Firms that are successful innovators utilize multiple sources of information and ideas including
- In house research and development, including basic research - Linkages to customers or other potential users of innovations - Linkages to an external network of firms that may include competitors, complementors and suppliers - Linkages to other external sources of scientific and technical information such as universities and government laboratories
To qualify for a patent an invention must usually meet the following criteria
- It must be useful (must produce a desirable result, solve a problem, improve on or propose a new use for an existing development or show potential of doing so) - It must be novel (must not already be patented or described in public literature, or be in public use for more than a year - It must not be obvious (i.e. a person with experience or skill in the particular art of the patent would not be expected to achieve the same invention with a normal amount of effort
3 Sometimes conflicting goals (NPD Process)
- Maximizing product's fit with customer requirements - Minimizing the development cycle time - Controlling development costs
Five Myths about Product Champions
- Myth 1: Projects with champions are more likely to be successful in the market - Myth 2: Champions get involved because they are excited about the project rather than from self interest - Myth 3: Champions are more likely to be involved with radical innovation projects, - Myth 4: Champions are more likely to be from high (or low) levels in the organization - Myth 5: Champions are more likely to be from marketing
functional team structure (detailed)
- Project manager: None - Power of project manager: NA - Time spent on team activities: up to 10%, - - Location of team members: Functions - Length of commitment to team: Temporary - Evaluation of team members: Functional heads - Potential for conflict between team and functions: low - Degree of cross-functional integration: low - Degree of fit with existing organizational practices: high - Appropriate for: some derivative projects
lightweight team structure (detailed)
- Project manager: junior or middle manager - Power of project manager: low - Time spent on team activities: up to 25%, - Location of team members: Functions, - Length of commitment to team: Temporary - Evaluation of team members: Functional heads - Potential for conflict between team and functions: low - Degree of cross-functional integration: moderate - Degree of fit with existing organizational practices: high - Appropriate for: derivative projects
heavyweight team structure (detailed)
- Project manager: senior manager - Power of project manager: high - Time spent on team activities: 100%, - Location of team members: collocated with project manager - Length of commitment to team: Long term but ultimately temporary - Evaluation of team members: project manager and functional heads - Potential for conflict between team and functions: moderate - Degree of cross-functional integration: high - Degree of fit with existing organizational practices: moderate - Appropriate for: platform projects / breakthrough projects
autonomous team structure (detailed)
- Project manager: senior manager - Power of project manager: very high , - Time spent on team activities: 100%, - Location of team members: collocated with project manager - Length of commitment to team: permanent - Evaluation of team members: project manager - Potential for conflict between team and functions: high - Degree of cross-functional integration: high - Degree of fit with existing organizational practices: moderate-low - Appropriate for: platform projects / breakthrough projects
Exxon managers created own extended stage-gate system to include basic research
- Stage A: Company identifies potential business incentives and competitive advantages of an envisioned technology, company then develops basic research plan that establishes specific scientific deliverables, methods for achieving these deliverables and the required resources. - Stage B: begin to execute the plan developed in Stage A, using scientific methods to generate leads for addressing the business opportunity stage 1: identifies best leads using "proof-of-principle" assessment to establish whether the leads are feasible stage 2-5: proceeds according to a typical stage-gate process
Exxon stage gate (order)
- Stage A: Opportunity identification Gate A - Stage B: Enabling Science and Idea Growing Gate B - Stage 1: Lead Definition Gate 1 - Stage 2: Pre-development assessment Gate 2 - Stage 3: Development Gate 3 - Stage 4: Validation Gate 4 - Stage 5: Commercialization
10 year study of inventors, concludes the most successful inventors possess the following characteristics
- They have mastered the basic tools and operations of the field in which they invent but they have not specialized solely in that field: instead they have pursued two or three fields simultaneously, permitting them to bring different perspectives to each - They are curious and more interested in problems than solutions - They question the assumptions made in previous work in the field - They often have the sense that all knowledge is unified. - They seek global solutions rather than local solutions, and are generalist by nature
Overall Innovation Performance
- What is the firm's return on innovation? (This measure assess the ratio of the firm's total profits from new products to its total expenditure, including research and development costs, the costs of retooling and staffing production facilities, and initial commercialization and marketing costs), - What percentage of projects achieve their sales goals? - What percentage of revenues are generated by products developed within the past five years? - What is the firm's ratio of successful projects to its total project portfolio?
New Product Development Process Metrics
- What was the average cycle time (time to market) for development projects? - How did this cycle time vary for projects characterized as breakthrough, platform, or derivative? - What percentage of development projects undertaken within the past five years met all or most of the deadlines set for the projects? - What percentage of development projects undertaken within the past five years stayed within budget? - What percentage of development projects undertaken within the past five years resulted in a completed product?
agile development
- a process commonly used in software whereby the overall product is broken into smaller independent pieces that are worked on by autonomous self-organizing teams. - Features are developed and presented to customers quickly so that the overall product can be rapidly and continuously adapted
"openness to experience" (personality trait) Reflects use of
- active imagination - aesthetic sensitivity - attentiveness to emotion - preference for variety - intellectual curiosity
Whether switching to a new technology will benefit a firm depends on a number of factors
- advantages offered by the new technology - the new technology's fit with firm's current abilities (thus amount of effort needed to switch, and time it would take to develop new competencies) - new technologie's fit with firm's position in complementary resources (eg. firm may lack key complementary resources or may earn a significant portion of its revenues from selling products compatible with incumbent technology - expected rate of diffusion of new technology
Collaboration in form of
- alliances - participation in research consortia - licensing arrangements - contract research - development - joint ventures and - other arrangements
downsides to geographical clustering
- competition that reduces pricing power in relations with buyers and suppliers - may increase likelihood of competitors gaining access to firm's proprietary knowledge - clustering can lead to traffic congestion, inordinately high housing costs, and higher concentrations of pollution - if an innovative activity commences in a geographical locale, the knowledge and expertise that accumulates might not spread readily into other geographical locales → localized cluster of technological expertise
why some firms shift to new tech more slowly than others
- complexity of knowledge underlying new technologies - and development of complementary resources that make tech useful can explain
5 personality factors
- conscientiousness - extroversion - neuroticism - agreeableness - openness to experience
The creativity of the organization is a function of
- creativity of individuals in organization - variety of social processes - and contextual factors that shape the way individuals interact and behave
4 Patterns of teams
- decentralized self coordination - system integrator as coordinator - core team as system architect - centralized venture team
4 Types (teams)
- functional - lightweight - heavyweight - autonomous
other things being equal, teams whose project manager are deficient in one or more of these dimensions will have a lower probability of success
- high status - act as a concept champion for the team - good at conflict resolution - multilingual skills
The degree to which a product is novel is a function of
- how different it is from prior work - of the audience's prior experiences
An individual's creative ability is a function of
- intellectual abilities - knowledge - personality - motivation - environment Intellectual Abilities- intelligence memory, ability to look at problems in unconventional ways, ability to analyze which ideas are worth pursuing and which are not, ability to articulate those ideas to others that ideas are worthwhile
new product innovations and process innovations often occur in tandem
- new processes may enable production of new products - new products may enable the development of new processes - a product innovation for one firm may simultaneously be a process innovation for another
Information typically considered a trade secret only if it
- offers a distinctive advantage to the company in the form of economic rents - remains valuable only as long as the information remains private
4 Dimensions Commonly used to categorize innovations
- product versus process innovation - radical versus incremental - competence enhancing versus competence destroying - and architectural versus component
Great strength of the house of quality is that it
- provides a common language and framework within which the members of a project team may interact - makes relationship between product attributes and customer requirements very clear - it focuses on trade offs, it highlights the competitive shortcomings of the company's existing products and it helps identify what steps need to be taken to improve them - positive effect upon cross-functional communication and through that upon cycle time and product/customer fit
Limitations of S-curve Model as a Prescriptive Tool
- rare that true limits of a technology are known in advance - often disagreement among firms about what a technology's limits will be - shape of technology's s-curve not set in stone - life cycle of technology can be shortened or extended, influence shape of s-curve through development activities
Crowdsourcing challenges typically go through a four step process
1. Need translation 2. Connecting 3. Evaluation/Selection 4. Acquisitions
There are international copyright treaties for simplifying the process of securing such protection
Berne Convention, Berne Union for the Protection of Literary and Artistic Property Universal Copyright Convention (UCC) Rome Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations Brussels Convention Relating to the Distribution of Program Carrying Signals Transmitted by Satellite World Intellectual Property Organization Copyright Treaty
technological change is cyclical
Each new s-curve ushers in an initial period of turbulence followed by rapid improvement, then diminishing returns and ultimately is displaced by new technological discontinuity
Involving Customers
Firms often make decisions about projects on the basis of financial considerations and level of production and technical synergy achieved by the new product proposal rather than on marketing criterias, screening decision should be focused on new product's advantage and superiority to the consumer and the growth of its target market
original equipment manufacturers (OEM)
Firms that assemble goods using components made by other manufacturers, also called value added resellers (VARs)
incubator
Institution designed to nurture the development of new businesses that might otherwise lack access to adequate funding or advice
socially complex knowledge
Knowledge that arises from the interaction of multiple individuals. Competitors will typically find very difficult to duplicate
tacit knowledge
Knowledge that cannot be readily codified or transferred in written form
World Intellectual Property Organization administers a System of International registration of Marks governed by two treaties
Madrid Agreement Concerning the International Registration of Marks and the Madrid Protocol Madrid Union
system integrator as coordinator
Most R&D activity conducted by decentralized divisions but each coordinates with central integrator
several international treaties have been negotiated between countries that seek to harmonize patent laws around the world
Paris Convention for the Protection of Industrial Property (Paris Convention Priority) Patent Cooperation Treaty
complementors
Producers of complementary goods or services (eg. for video games console producers such as Sony and Nintendo game developers) are complementors
Given the range of advantages (and risks) of protecting versus diffusing a technology a firm must carefully consider the following factors in deciding whether and to what degree it should protect its innovation
Production Capabilities, Marketing Capabilities, and Capital Industry Opposition against Sole Source Technology Resources for Internal Development Control Over Fragmentation Incentives for Architectural Control
autonomous team structure (general)
Project managers provides cross-functional integration, team members are collocated and report only to project manager
heavyweight team structure (general)
Project managers provides cross-functional integration, team members are collocated but still report to functional managers also
problems at product design stage when
R&D engineers fail to communicate directly with manufacturing engineers
centralized venture team
R&D resources transferred to centralized venture team, which then conducts all R&D activities
Eliminate adjustments (DFM)
Reduces assembly errors (increase quality), allows for automation, increase capacity and throughput
Eliminate jigs and fixtures (DFM)
Reduces line changeover costs, lowers required investment
Minimize the number of part numbers (use common parts across product family) (DFM)
Reduces material handling and inventory costs, improves economies of scale (increases volume through commonality)
technology clusters
Regional clusters of firms that have a connection to a common technology and may engage in buyer, supplier and complementor relationships as well as research collaboration
science parks
Regional districts, typically set up by governments to foster R&D collaborations between government, universities and private firms
Applied research
Research targeted at increasing knowledge for a specific application or need
basic research
Research targeted at increasing scientific knowledge for its own sake. It way or may not have any long term commercial application
Eliminate fasteners (DFM)
Simplifies assembly (increase quality), reduces direct labor costs, reduces squeaks and rattles, improves durability, allows for automation
open source software
Software whose code is made freely available to others for use, augmentation and resale (also liberal licensing arrangement)
Robert G. Cooper (provides a blueprint for moving through different stages of development)
Stage 1: team does a quick investigation and conceptualization of the project, Stage 2: team builds a business case that includes a defined product, its business justification and a detailed plan of action for the next stages Stage 3: team begins actual design and development of the product, define test plans Stage 4: team conducts the verification and validation process for the proposed new product, and its marketing and production Stage 5: product is ready for launch, full commercial production and selling commence
service mark
basically the same as a trademark but distinguishes the provider of a service rather than a product.
if complementary goods influence the value of the technology to users, then the firm must
be able to produce the complements in sufficient range and quality sponsor their production by other firms encourage collective production of the complements through a more open technology strategy
when customers help co-create an innovation, the resulting innovations tend to
better fit their needs or expectations
cultural diversity
better problem solving by incorporating multiple viewpoints, and teams composed of members who are diverse in terms of education, gender or age can help ensure a variety of viewpoints are considered and external resources are tapped
In forming of virtual teams important to select personnel who are
both comfortable with the technologies being used to facilitate collaboration and who have strong interpersonal skills
bringing a product to market early can help a firm
build brand loyalty, preemptively capture scarce assets and build customer switching costs
a competence enhancing innovation
builds on existing knowledge and skills whereas a competence destroying innovation renders existing knowledge and skills obsolete
short development cycle
can quickly revise or upgrade offering as design flaws are revealed or technology advances, first-mover and second mover advantages
in most countries the discovery of scientific principles that pertain to natural laws (eg. gravity) .... be patented
cannot be patented
in industries characterized by increasing returns, firms sometimes ...
choose to liberally diffuse their technologies to increase their likelihood of rising to the position of dominant design
team lead
chosen because of their technical expertise and their vision for the project. Their seniority played little role, chosen based on how compelling their vision was, and how good management thought they would be in driving the progress of the team
.... and .... can influence a firm's willingness to exchange knowledge
closeness and frequency of interaction
external sources of information more likely to be....to rather than....for in-house research and development
complements, substitutes
Quality Function Deployment (QFD), The House of Quality
comprehensive process for improving the communication and coordination among engineering, marketing and manufacturing personnel, "house of quality" is a matrix that maps customer requirements against product attributes
CAM
computer aided manufacturing
First phase: Fluid phase
considerable uncertainty about technology and its market, technologies might suit needs of niche markets, firms experiment with different form factors or product features to assess the market response
rapid product introductions may cause adverse consumer reactions
consumers may regret past purchases and be wary of new product purchases for fear they should rapidly become obsolete
Task coordination activities
coordinating and negotiating team's activities with other groups
diversity of team members can also raise
coordination and communication costs
agile development core values
core values emphasizing collaboration, self-organization, and cross functional teams
lead users
customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs
Firms form alliances with.... in pursuit of innovation
customers, suppliers, complementors and competitors
Innovations that are incremental, are modular, and do not require the frequent transfer of complex or tacit knowledge can be more
decentralized
intranet
a private network accessible only to authorized individuals. It is like the internet but operates only within ("intra") the organization
contract book
defines in detail the basic plan to achieve the goal laid out in the project charter
Each gate has 3 components
deliverables, criteria, outputs
lack of cross functional communication between functions can lead to longer cycle times as
a product iterates back and forth between different stages in the process
marks (trademark) must be registered before
a suit can be brought in federal court against an infringement of the mark
discontinuous technology
a technology that fulfills a similar market need by building on an entirely new knowledge base
if the skill and talent of the people are more important than their ability to meet face-to-face
a virtual team is formed
trademark
a word, phrase, symbol, design or other indicator that is used to distinguish the source of goods from one party from the goods of others
Presumably doing in-house R&D helps build firm's
absorptive capacity
The primary argument for diffusing a technology instead of protecting it is that open technologies may
accrue more rapid adoptions liberal diffusion strategy can stimulate the growth of the installed base and availability of complementary goods
to shorten development process and avoid time consuming and costly iterations between stages of development cycle
adopt partly parallel development process
s-curves are often used to describe the diffusion of a technology
adoption initially slow when tech introduced, accelerates as tech becomes better understood and utilized by the mass market, eventually the market is saturated → rate of new adoptions declines
decentralized self coordination
all R&D conducted by decentralized divisions that coordinate loosely with each other
once product design has commenced, managers may be reluctant to
alter the product design even if market testing reveals that the product design is suboptimal
architectural innovation
an innovation that changes the overall design of a system or the way its components interact with each other
radical innovation
an innovation that is very new and different from prior solutions
incremental innovation
an innovation that makes a relatively minor change from (or adjustment to) existing practices
products that are introduced to the market earlier are likely to have .... over later offerings
an installed base and availability of complementary goods advantage
virtual teams also take challenges in
developing trust, resolving conflict and exchanging tacit knowledge
the team leader is responsible for
directing the team's activities, maintaining the team's alignment with project goals, and serving as a communicator between the team and senior management
with priority rights established under the Paris Convention...
an inventor who patents an invention in one of the member countries can then publicly disclose information about that invention without losing the right to patent the invention in the other countries
rate of technology's performance improvement and rate at which technology is adopted in marketplace conform to
an s-shape
science push (1950s and 1960s)
approach assumed innovation proceeded linearly from scientific discovery, to invention, to engineering, then manufacturing activities, and finally marketing. Primary source of innovation was basic science, discoveries translated into commercial applications by the parent firm (shown to have little applicability to real world products)
process innovations
are innovations in the way an organization conducts its business, such as techniques of producing or marketing goods or services. Often oriented toward improving the effectiveness and efficiency of production by eg. reducing defect rates or increasing the quantity that may be produced in a given time
trademark protection can last...
as long as the trademark is in use, but the registration requires periodic renewal
Unlike patent protection, copyright protection is secured...
automatically when an eligible work is created or fixed in a copy or phone recorded for the first time. No publication or registration with the Copyright Office is necessary to establish this copyright
project charter
encapsulates the project's mission and articulates exact and measurable goals for the project, might include a vision statement for project and a background statement for why this project is important for the organization who is in the team, length of time members will spend on team and percentage of their time spent on team activities. Teams budget, reporting timeline and key success criteria of the project
Based on Utterback and Abernathy → Anderson and Tushman
era of ferment and era of incremental change
Second phase: Specific phase
eventually dominant design emerges, innovations in products, materials and manufacturing processes are all specific to the dominant design
To apply for a patent the inventor must...
explain how to make and use the invention, and make claims about what it does that makes it a new invention. Drawings of new invention often required reviewed by a patent examiner the patent is then published for a time in which other inventors can challenge the patent grant if standard for patentability are met the patent is then granted in industries in which product life cycles are short such delays significantly diminish the usefulness of patenting fees vary by patenting office filing fees, attorney fees
firms with own R&D also heaviest users of
external collaboration networks
Patent Cooperation Treaty
facilitates the application for a patent in multiple countries, helps make results of patent applications more uniform
Project Champions
firms should assign (or encourage) a senior member of the company to champion new product development project
if efforts invested in technology decreases or increases over time the resulting curve could appear to
flatten much more quickly or not flatten at all
era of incremental change
focus on efficiency and market penetration, invest in refining competencies related to dominant architecture. Most competition revolves around improving components rather than altering the architecture,as firm's expertise, structure, communication channels and fillers all become orientated around maximizing its ability to compete in existing dominant design, they become barriers to the firm's recognizing and reacting to a new technology architecture
champion's seniority is an asset in
gaining access to resources and facilitating coordination
beta testing
get customer input early in development process
Innovations that are radical, are architectural or require the intensive transfer of complex or tacit knowledge will require
greater centralization.
Personality characteristics that enhanced success of a new product development team
high extroversion, high agreeableness, low neuroticism
collaborative research especially important in
high-technology sectors
Measures of the success of the new product development process can help management to
identify which projects met their goals and why, Benchmark the organization's performance compared to that of competitors or to the organization's own prior performance, Improve resource allocation and employee compensation, Refine future innovation strategies
in many countries public disclosure of an invention makes it
impossible to subsequently patent that invention
US: doctrine of fair use
in most circumstances it is not a violation of copyright for others to use copyrighted material for purposes such as - criticism - comment - news reporting - teaching - scholarship or research
Cost of new product development typically
increase with time
Knowledge brokers
individuals or organizations that transfer information from one domain to another in which it can be usefully applied
organizational tenure diversity
individuals who enter the organization at different times → different contracts outside of the team, enabling the team to draw from a wider mix of resources
trade secret
information that belongs to a business that is held private formula for a beverage is not patentable, it can be considered a trade secret
demand pull model (mid 1960s)
innovation driven by perceived demand of potential users. Develop new products in efforts to respond to customer problems or suggestions. Criticized for being too simplistic
Heterogeneity can increase creativity and variance in decision making
innovative outcomes and higher overall performance
demographic diversity in teams can increase
innovative outcomes and overall performance
heterogeneous teams often have greater difficulty
integrating objectives and views, leading to conflict and lower group cohesion
Copyright
is a form of protection granted to work of authorship authors of original literary, dramatic, musical, artistic and certain other intellectual works can obtain copyright protection
if disruptive technology has much greater performance potential for a given amount of effort in the long run
it is likely to displace the incumbent technology but the rate at which it does so can vary significantly
innovation is more than the generation of creative ideas
it is the implementation of those ideas into some new device or process
creative destruction
key driver of progress in capitalist society
tacit knowledge
knowledge that cannot be readily codified (documented in written form)
complex knowledge
knowledge that has many underlying components or many interdependencies between those components or both
in heavyweight and autonomous teams, the project manager must be someone who can
lead and evaluate the team members, champion the development project both within the team and to the wider organization, and act as a translator between the various functions
some studies suggest firms should focus on the inputs of .... in their development efforts rather than a large sample of customers
lead users
in most countries the rights to a trademark or service mark are established in the...
legitimate use of the mark and do not require registration
working requirements
many countries also require that the invention be manufactured in the country in which a patent was granted within a certain time frame from the time the patent is granted
Failure Modes and Effects Analysis
method by which firms identify potential failures in a system, classify them according to their severity and put a plan into place to prevent the failures from happening
visual mental activity: primary process thinking
most likely to occur just before sleep or while dozing or daydreaming → combine ideas not typically related → remote associations, or divergent thinking
Maximizing Fit with Customer Requirements
must offer more compelling features, greater quality, or more attractive pricing than competing products. firms may have difficulty resolving heterogeneity in costumer demands
substitution
new technology displaces old
the most radical innovations would be
new to the world and exceptionally different from existing products and processes
radicalness might be conceived as the combination of
newness and the degree of differentness
functional team structure (general)
no cross-functional integration, employees remain within functional departments
technology transfer offices
offices designed to facilitate the transfer of technology developed in a research environment to an environment where it can be commercially applied
trademark and service marks can be embodied in any indicator that can be perceived through...
one of the five senses
sign contract book
ownership and duty
if efforts relatively constant over time, plotting performance against time will result in same characteristic curve as plotting
performance against efforts
product owner
person at organization who represents costumer's interest
sequential process has no early warning system to indicate that
planned features are not manufacturable
"anti champions"
play role of devil's advocate
collaborations can
pool resources such as knowledge and capital and share risk of new product development project
minimum viable product
presented to customer for feedback, enabling rapid incremental adaptation
speed of NPD also overburdening development team
problems overlooked in design or manufacturing process
lack of cross-functional communication can lead to poor fit between
product attributes and customer requirements
dominant design
product design that is adopted by the majority of producers typically creating a stable architecture on which the industry can focus its efforts
adequate .... may be sacrificed to meet development schedules
product testing
2 key attributes of a product
quality and price
speed of new product development may come at the expense of
quality or result in sloppy market introductions
criteria
questions or metrics used to make go/kill decision
radicalness of an innovation is
relative and may change over time or with respect to different observers
because proprietary systems offer greater...
rent appropriability their developers often have more money and incentive to invest in technological development, promotion, and distribution
Ambassador activities
representing team to others and protecting team from inference
output
result of gate review process and may include a decision such as go, kill, hold or recycle. Output should also include an action plan for the dates and deliverables of the next gate
deliverables
results of previous stage and are input for the gate review
radicalness of innovation also sometimes defined in terms of
risk
S-curve of diffusion in part a function of
s-curve in technology improvements: tech better developed → more certain and useful to users → facilitating adopting, Learning curve and scale advantages accrue to the technology, price of finished goods often drop → accelerating adoption
Scouting activities
scanning for ideas and information that might be useful to the team, enhancing its knowledge base
.... and .... were more beneficial if conducted early in the development project cycle, while .... were beneficial throughout the life of the team
scouting and ambassador activities, task coordination activities
risk priority number =
severity * likelihood of occurrence * inability of controls to detect
potential failure modes are then evaluated on 3 criteria of the risk they pose
severity, likelihood of occurrence, inability of controls to detect it
user stories
short descriptions of functions described by customers in their own words
Minimize number of parts (DFM)
simplifies assembly, reduces direct labor, reduces material handling and inventory costs, boosts product quality
many technologies exhibit s-curve in performance improvement over life times
slow initial improvement, then accelerated improvement, then diminishing improvement
scrum teams
small, self-organizing teams with no titles or team manager
in some situations, using parallel development process can substantially increase
the risks or lost of development process
brainstorming groups produced fewer ideas and ideas of less novelty than the sum of ideas created by
the same number of individuals working alone
technology diffusion
the spread of a technology through a population
For a new product development team to be effective, its leadership and administrative policies should be matched to
the team's structure and needs
homophily
the tendency for individuals to like other people whom they perceive as being similar to themselves (easier and more comfortable to communicate with those)
development cycle time
the time from project initiation to product launch, usually measured in months or years
innovation often originates with those who create solutions for
their own needs.
rise of dominant design signals
transition from era of ferment to era of incremental change
in some industries, heterogeneity of products and production processes are a primary determinant of value and thus a dominant design is
undesirable
In Eg. Swe: policy of "professor privilege"
university faculty retain sole ownership rights over their inventions
firms consider...most valuable source of new product ideas
users
technology evolution model
utterback and Abernathy (technology pass through distinct phases), fluid phase and specific phase
virtual teams pose a distinct set of management challenges
virtual teams must often rely on communication channels that are much less rich than face to face contact and face significant hurdles establishing norms and dialects and may suffer from greater conflict. They may also have trouble negotiating multiple time zones, which can lead to frustration
social loafing
when an individual in a team does not exert the expected amount of effort and relies on the work of other team members
often adopt a strategy of partial protection for their innovations, falling somewhere on the continuum between
wholly proprietary systems and wholly open systems
whether an innovation is competence enhancing or competence destroying depends on
whose perspective is being taken. An innovation can be competence enhancing to one firm, while competence destroying for another
era of ferment
each technological discontinuity inaugurated a period of turbulence and uncertainty, different stakeholders might have different concepts of what purpose the technology should serve or how to build business model around it, design competition, substitution
beta version
early working prototype of a product released to users for testing and feedback. Also enable firms to signal the market about its product features before the product reaches the commercial production stage
development efforts must be not only effective but also
efficient
product innovations
embodied in outputs of an organization- its goods or services
lightweight team structure (general)
employees remain within functional departments but project managers provides cross-functional integration
technological spillovers
a positive externality from R&D resulting from the spread if knowledge across organizational or regional boundaries
innovation
the practical implementation of an idea into a new device or process
under section 106 of the 1976 Copyright Act, the owner of the copyright has the exclusive right to do (or authorize others to do) the following
- reproduce the work in copies or phonorecords - Prepare derivative works based on the work - Distribute copies or phonorecords of the work to the public by sale or other transfer of ownership or by rental, lease or lending - Perform the work publicly in the case of literary, musical, dramatic and choreographic works, pantomimes and motion pictures and other audiovisual works - Display the copyrighted work publicly in the case of literary, musical, dramatic and choreographic works, pantomimes and pictorial, graphic or sculptural works including the individual images of a motion picture or other audiovisual work Perform the work publicly by means of a digital audio transmission (in the case of sound recording)
tools used to improve the development process include
- stage-gate processes - quality function deployment ("house of quality") - design for manufacturing - failure modes and - effects analysis and - computer-aided design/computer aid manufacturing
The following are not typically patentable
- substituting one material for another - merely changing the size of an already existing device - making something more portable substituting an element for an equivalent element - altering an item's shape - printed materials are not typically patentable, may be possible to protect through copyright
Most creative works are novel at
- the individual producer level - the local audience level - the broader societal level
For information to qualify as a trade secret under the Unia (?) Trade Secret Act, the information must meet the following 3 criteria:
- the information must not be generally known or readily ascertainable through legitimate means - The information must have economic importance that is contingent upon its secrecy - The trade secret holder must exercise reasonable measures to protect the secrecy of the information
The degree to which innovative activities are geographically clustered depends on things such as
- the nature of the technology - industry characteristics and - the cultural context of the technology
whether R&D benefits will spill over is partially a function of
- the strength of protection mechanisms such as patents, copyrights and trade secrets - also of the nature of the underlying knowledge base - and the mobility of the labor pool
Control continuum that stretches from wholly proprietary to wholly open
- wholly proprietary - limited licensing - moderate licensing - liberal licesing - wholly open
some types of work cannot be protected by copyright
- work that has not been fixed in a tangible form of expression is not eligible for copyright protection. - Titles, names, short phrases, slogans, familiar symbols, and list of ingredients also cannot be copyrighted
"house of quality" completed in a series of steps
1. The team must first identify customer requirements 2. The team weights the customer requirements in terms of their relative importance from a customer's perspective, 3. The team identifies the engineering attributes that drive the performance of the product 4. The team enters the correlations between the different engineering attributes to assess the degree to which one characteristic may positively or negatively affect another. The correlations are entered into the matrix that creates the peaked roof 5. The team fills in the body of the central matrix. Each cell in the matrix indicates the relationship between an engineering attribute and a customer requirement 6. The team multiplies the customer importance rating of a feature by its relationship to an engineering attribute. These numbers (1, 3 or 9) are summed up for each column, yielding a total for the relative importance of each engineering attribute 7. The team evaluates the competition (scale 1-7). These scores go in the right-hand "room" of the house of quality 8. Using the relative importance ratings established for each engineering attribute and the scores for competing products (from step 7) the team determines target values for each of the design requirements 9. A product design is then created based on the design targets from step 8. The team then evaluates the new design that was created. The team assesses the degree to which each of the customer requirements has been met
Act States that no individual or group can copy, use or otherwise benefit from a trade secret without the owner's authorization if they meet any of the following conditions:
1. They are bound by a duty of confidentiality (eg. employees, lawyers) 2. They have signed a non disclosure agreement 3. They acquire the secret through improper means such as theft or bribery 4. They acquire the information from someone who did not have the right to disclose it 5. They learn about the secret by mistake but have reason to know that the information was a protected trade secret
Sequential process (order)
1. opportunity identification 2. concept development 3. product design 4. process design 5. commercial production
time period, utility patents...
12 months
in most countries patent protection last for...
20 years
design patents and trademarks...
6 months
Development
Activities that apply knowledge to produce useful devices, materials, or processes
component (or modular innovation)
An innovation to one or more components that does not significantly affect the overall configuration of the system
Design for manufacturing
Another method of facilitating integration between engineering and manufacturing and of binging issues of manufacturing into the design process as early as possible is the use of design for manufacturing methods (DFM)
teams are often extremely valuable for refining and executing on those ideas
By combining the efforts and expertise of multiple individuals, groups can often outperform individuals on many problem solving tasks implying that the size of the development team might be related to its potential for success
Involving Suppliers
By tapping into the knowledge base of its suppliers a firm expands its information resources
CAD
Computer aided design
CAE
Computer aided engineering
core team as system architect
Core team takes lead role in R&D activities while also coordinating the R&D activities of the decentralized divisions
go/kill decision points
Gates established in the development process where managers must evaluate whether or not to kill the project or allow it to proceed
Wholly open systems
Goods based on technology that is not protected and that is freely available for production or augmentation by other producers usually quickly commoditized and provide little appropriability of rents to their developers
wholly proprietary systems
Goods based on technology that is owned and vigorously protected through patents, copyrights, secrecy or other mechanisms wholly proprietary technologies may be legally produced and augmented only by their developers
stage gate methods
Team begin working when previous team had completed its stage of process
virtual teams
Teams in which members may be a great distance from each other, but are still able to collaborate intensively via advanced information technologies such as videoconferencing, groupware and e-mail or Internet chat programs
appropriability
The degree to which a firm is able to capture the rents from its innovation generally determined by how easily or quickly competitors can imitate the innovation
patent trolling
a pejorative term for when an individual or firm misuses patents against other individuals or firms in attempt to extract money from them
Paris Convention
a citizen of any member country may patent an invention in any of the member countries and enjoy same benefit of patent protection as of the inventor were a citizen of those countries
patent thickets
a clense web of overlapping patents that can make it difficult for firms to compete or innovate
concurrent engineering
a design method in which stages of product development (eg. concept development, product design and process design) and planning for later stages of the product life cycle (eg. maintenance, disposal, and recycling) occur simultaneously
partly parallel development process
a development process in which some (or all) of the development activities at least partially overlap. That is if activity A would precede activity B in a partly parallel development process, activity B might commence before activity A is completed
crowdsourcing
a distributed problem solving model whereby a design problem or production task is presented to a group of people who voluntarily contribute their ideas and efforts in exchange for compensation, intrinsic rewards, or a combination thereof
The ease with which competitors can imitate the innovation
a function of both the nature of the technology itself and the strength of the mechanisms used to protect the innovation
three dimensional printing
a method whereby a design is developed in a computer aided design program is printed in three dimensions by laying down thin strips of material until the model is complete (also additive manufacturing)
as team size increases the potential for
social loafing also increases
idea
something imagined or pictured in the mind
strong positive relationship between.... and .... of new products
speed and the commercial success
cross functional teams
teams whose members are drawn from multiple functional areas in the firm such as R&D, marketing, manufacturing, distribution and so on
architectural control can be very valuable, especially for
technologies in which compatibility with other goods and services is important
to increase the degree to which university research leads to commercial innovation, many universities have established
technology transfer offices
architectural control
the ability of a firm (or group of firms) to determine the structure, operation, compatibility and development of a technology
absorptive capacity
the ability of an organization to recognize, assimilate, and utilize new knowledge
creativity
the ability to produce novel and useful work
one primary reason for the emergence of regional clusters is
the benefit of proximity in knowledge exchange.
agglomeration economies
the benefits firms reap by locating in close geographical proximity to each other
should be considered relative dimensions whose meanings is dependent on
the context in which they are used
the easier products are to manufacture
the fewer the assembly steps required the higher labor productivity will be, resulting in lower unit costs
If patent provide little protection...
the firm may rely more heavily on trade secrets
increasing returns to adoption
the more a technology is adopted the more valuable it becomes
technology trajectory
the path a technology takes through its lifetime. This path may refer to its rate of performance improvement, its rate of diffusion, or other change of interest
