,Chapter 3,Types and Patterns of Innovation,Chapter,3,McGraw-Hill/Irwin, 2005 The McGraw-Hill Companies, Inc. All rights reserved.,Ericssons Gamble on 3G Wireless,Ericsson, founded as a telegraph repair shop in 1876; by end of 2002 was the largest supplier of mobile telecommunications systems in the world. First generation of cell phones had been analog. Second generation (2G) was digital. By end of 1990s, sales of 2G phones were beginning to decline. Telecom leaders began to set their sights on 3G phones that would utilize broadband channels, enabling videoconferencing and high-speed web surfing. In late 1990s, Ericsson began focusing on 3G systems, and put less effort on developing and promoting its 2G systems. However, transition to 3G turned out to be more complex than expected, and there were worries that users might not value them as much as hoped. Had Ericsson gambled too much (and too early) on 3G?,Ericssons Gamble on 3G Wireless,Discussion Questions: 1. Is 3G a radical innovation or an incremental innovation? 2. What factors do you think will influence the rate at which 3Gtechnologies are adopted by operators and mobile phoneconsumers? 3. Is Ericsson trying to offer more technological capability thanconsumers really need? 4. Is Ericssons focus on 3G technologies a good strategy? Whyor why not?,Overview,Several dimensions are used to categorize innovations. These dimensions help clarify how different innovations offer different opportunities (and pose different demands) on producers, users, and regulators. The path a technology follows through time is termed its technology trajectory. Many consistent patterns have been observed in technology trajectories, helping us understand how technologies improve and are diffused.,沒有單一的分類法則來描述不同類型的創新,創新種類,技術系統創新 技術創新 (Philip CD 83) 產品創新 (Sony walkman 79) 流程創新 (7-11配送創新) 服務創新 (Fedexs Hub & spoke 98) 管理系統創新 架構創新 (KFC 加盟店 52) 策略創新 (台積電 晶圓代工 87),創新的類型,依對象：產品創新(針對現有產品或服務的特性或功能來改變或開發新產品)與程序創新(針對產品服務或的製造、行銷、配送進行改變)依幅度：連續性創新(對現有的產品、服務或技術做改變 )動態性創新(對現有產品、服務或技術做重大突破改變 )非連續性創新(為全新的產品、服務或技術)依層面：技術面創新(對現有產品或服務的功能或生產程序做改變 )管理面創新(只對產品或服務的管理過程做改變並不直接影響產品或服務的外表或功能),Types of Innovation,Product versus Process Innovation Product innovations are embodied in the outputs of an organization its goods or services. Process innovations are innovations in the way an organization conducts its business, such as in techniques of producing or marketing goods or services. Product innovations can enable process innovations and vice versa. What is a product innovation for one organization might be a process innovation for another E.g., UPS creates a new distribution service (product innovation) that enables its customers to distribute their goods more widely or more easily (process innovation),Types of Innovation,Radical versus Incremental Innovation The radicalness of an innovation is the degree to which it is new and different from previously existing products and processes. Incremental innovations may involve only a minor change from (or adjustment to) existing practices. The radicalness of an innovation is relative; it may change over time or with respect to different observers. E.g., digital photography a more radical innovation for Kodak than for Sony.,Types of Innovation,Competence-Enhancing versus Competence-Destroying Innovation Competence-enhancing innovations build on the firms existing knowledge base E.g., Intels Pentium 4 built on the technology for Pentium III. Competence-destroying innovations renders a firms existing competencies obsolete. E.g., electronic calculators rendered Keuffel & Essers slide rule expertise obsolete. Whether an innovation is competence enhancing or competence destroying depends on the perspective of a particular firm.,創新種類,Sustaining innovations (維持性創新): Bring a better product into an established marketDisruptive innovations(破壞性創新): Low-end disruption(低階市場的破壞性創新): Address over-served customers with a lower-cost business model New-market disruption(創造新市場的破壞性創新): Compete against non-consumption.,創新種類,性 能,時間,不 同 性 能 的 考 量,維持性創新 把更好的產品帶到現有市場上,低階市場的破壞性創新 以更低成本的事業模式，爭取被過度服務的顧客,創造新市場的破壞性創新 爭取尚未消費者,未消費程度,公司改進軌跡顧客需求軌跡,Types of Innovation,Architectural versus Component Innovation A component innovation (or modular innovation) entails changes to one or more components of a product system without significantly affecting the overall design. E.g., adding gel-filled material to a bicycle seat An architectural innovation entails changing the overall design of the system or the way components interact. E.g., transition from high-wheel bicycle to safety bicycle. Most architectural innovations require changes in the underlying components also.,Technology S-Curves,Both the rate of a technologys improvement, and its rate of diffusion to the market typically follow an s-shaped curve. S-curves in Technological Improvement,Technology improves slowly at first because it is poorly understood. Then accelerates as understanding increases. Then tapers off as approaches limits.,