Strategic Management Of Technological Innovation

PrefaceortuA edt tuoda
Innovation is beautiful thing. It is a force with both aesthetic and pragmatic appeal: It our creative spirit, opening our minds to hitherto undreamed of possibil ities, while simultaneously accelerating economic growth and providing advances in crucial human endeavors as medicine, agriculture, and education. For industrial organizations, the primary engines of innovation in the Western world, innovation pro vides both exceptional opportunities and steep challenges. While innovation is a pow erful means of competitive differentiation, enabling firms to penetrate new markets and achieve higher margins, it is also a competitive race that must be run with speed, skill, and precision. It is not enough for a firm to be innovative be successful it must innovate better than its competitors.
As scholars and managers have raced to better understand innovation, a wide range of work on the topic has emerged and flourished in disciplines such as strategic agement, organization theory, economics, marketing, engineering, and sociology. This work has generated many insights about how innovation affects the competitive dynamics of markets, how firms can strategically manage innovation, and how firms can implement their innovation strategies to maximize their likelihood of success. A great benefit of the dispersion of this literature across such diverse domains of study is that many innovation topics have been examined from different angles. However, this diversity also can pose integration challenges both instructors and students. This book seeks to integrate this wide body of work into single coherent strategic framework, attempting to provide coverage that rigorous, inclusive, and accessible.
Organization of the Book
The subject of innovation management approached here a strategic process. The outline of the book is designed to mirror the strategic management process used in most strategy textbooks, progressing from assessing the competitive dynamics of the situation, to strategy formulation, and then strategy implementation. The first part of the book covers the foundations and implications the dynamics of innovation, helping managers and future managers better interpret their technological environ ments and identify meaningful trends. The second part the book begins the process of crafting the firm's strategic direction and formulating its innovation strategy, including project selection, collaboration strategies, and strategies for protecting the firm's property rights. The third part the book covers the process of implementing innovation, including the implications of organization structure on innovation, the management of new product development processes, the construction and manage of new product development teams, and crafting the firm's deployment strategy. While the book emphasizes practical applications and examples, also provides sys tematic coverage of the existing research and footnotes guide further reading.
Preface vii
Complete Coverage for Both Business and Engineering Students
This book is designed to be a primary text for courses in the strategic management of innovation and new product development. Such courses are frequently taught in both business and engineering programs; thus, this book has been written with the needs business and engineering students in mind. For example, Chapter Six (Defining the Organization's Strategic Direction) provides basic strategic analysis tools with which business students may already be familiar, but which may be unfamiliar to engineer ing students. Similarly, some of the material in Chapter 11 (Managing the New Product Development Process) on computer-aided design quality function deploy ment may be review material for information system students or engineering students, while being new to management students. Though the chapters are designed have an intuitive order to them, they are also designed be self-standing instructors can pick and choose from them "buffet style" they prefer.
New for the Second Edition
This second edition the text been comprehensively revised ensure the frameworks and tools are rigorous and comprehensive, examples fresh and exciting, and the figures represent the most current information available. Some changes of particular note include:
Five new opening cases
Getting an Inside Look: Given Imaging's Camera Pill. This case chronicles a sci entist with a background in developing guided missiles the Israeli Ministry Defense pioneered the creation a wireless capsule endoscope-a revolutionary new
medical device that enables stream pictures be transmitted from inside small
intestine.
Honda and Hybrid Electric Vehicles. This case overviews the challenges Honda has faced in helping to create market for environmentally friendly automobiles. case details Honda's development, production, and marketing strategies, and draws atten tion to the trade-offs Honda has made defending highly independent stance the automobile industry.
Genzyme's Focus on "Orphan Drugs." an industry where most firms trying develop "blockbuster" drugs for the largest possible target markets, Genzyme found success by developing drugs for the tiny populations people afflicted with rare diseases. This case demonstrates how pursuing strategy is so antithetical the strategies pursued by most pharmaceutical companies creates unique advantage for Genzyme.
The Digital Music Distribution Revolution. The music industry undergoing large scale transformation. The MP3 format, Napster's (and its successors') peer-to-peer model of music sharing, "podcasting," and other new technologies have revolutionized how music is stored, bought, distributed, and enjoyed. This case overviews key technologies and events that are reshaping the music industry while highlighting interesting copyright issues that these technologies have unleashed.design. This case overviews the new product development processes used at frog design, the techno-hip global design firm that was behind such innovations as Apple's Macintosh computer and Sony's Trinitron TV frog's founder, Hartmut Esslinger, known as high technology's first industrial design superstar. His 300-person global design firm utilizes a set of creative tools and philosophies that helps firms reinvent themselves.
More Balance between Industrial Products versus Consumer Products
More industrial product examples (e.g., medical equipment, aerospace, business soft ware) have been included throughout the book, while retaining the book's emphasis technologies that are most likely to inspire the interest of a broad range of students.
More Comprehensive Coverage
More extensive coverage and precise explanations are now provided for such topics clustering, the relationship between technology performance and diffu sion, the social construction of technology, Porter's Five-Force Model and how it helps firm's decisions about its technology development path, the Aggregate Project Planning Framework, Quality Function Deployment ("House of Quality"), and more. However, great effort has also been put into ensuring that the book remains concise feature that has proven popular with both instructors and students.
Suggestions for Further Reading
Each chapter now provides a list of both classic articles and recent work that can extend and enrich students' understanding of the topic. Instructors may wish to assign some of these articles as supplemental reading and have students prepare a brief sum mary to be turned in or presented to the class.
Supplements
The teaching package for Strategic Management of Technological Innovation includes: • An instructor's manual with suggested class outlines, responses to discussion ques tions, and more.
Complete PowerPoint slides with lecture outlines and all major figures from the
text. The slides can also be modified by the instructor to customize them to the instructor's needs. A computerized testbank with true false, multiple choice, and short answer/short
essay questions.
A suggested of cases pair with chapters from the text.