Research Design for Innovation Studies - Sotaro...

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Research Design for Innovation Studies (Innovation System Engineering) Week 3 SOTARO SHIBAYAMA Graduate School of Pharmaceutical Sciences / Graduate School of Engineering University of Tokyo Oct. 17 2016

Transcript of Research Design for Innovation Studies - Sotaro...

ResearchDesignforInnovationStudies(InnovationSystemEngineering)

Week3

SOTAROSHIBAYAMA

GraduateSchoolofPharmaceuticalSciences/GraduateSchoolofEngineering

UniversityofTokyoOct.172016

GradingandAssignment

• Assignment(60%)(+Classpresentation)

• Project(writing)(40%)

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Howisthecoursedelivered?

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Tools

Problems

Case(Empirics)

Theory

ResearchQuestions

Tools• Tounderstandefficacyandlimitationofexistingtools• Tomotivatefurtherdevelopmentoftools/theories

Theory• Toprovidewithgeneralpictureofinnovationtheories• Topresentthefrontierandlimitationoftheories• Tomotivatefurtherdevelopmentoftheories

Casestudy• Tofacilitateunderstandingofthetheories/tools

*I’lltrytoshowabroadrangeof/up-to-datecases

ResearchQuestiondevelopment[Project]• Todevelopresearchdesign/problemfindingskills

InnovationProcess

MappingofLectureTopics

Search Select Implement Capture

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Source&search

R&Dmanagement

Productdevelopment

Businessmodel&value

capture

Organization

Diffusion&adoption

ManagingKnowledge

&IP

Organizationalcapability

System Socialinnovation

InnovationSystem

Academicentrepreneurship

Openinnovation

SourceandSearchPracticalQuestion• Whereshouldwesearchforasourceofinnovation?• Doesthatdependontypeofinnovation?• Doesthatdependonthelifecycleofinnovation?

KnowledgeObjective• Tounderstand

– Sourcesofinnovation– Aframeworkforlookingatsources– Innovationlifecycle– Dimensionsofsearchspace– Strategiesforcoveringsearchspace

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Today’sTopics

Technology andMarket

User-led Innovation

DisruptiveInnovation

InnovationLife cycleandStrategy

ExplorationandExploitation

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TECHNOLOGYANDMARKET

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Innovationcomesfromvarioussources.

• Suppliers• Clients,customers,users• Competitors• Consultants• Universitiesorotherhighereducationinstitutes• Governmentresearchorganizations• Professionalconferences,meetings• Technical/tradepress,computerdatabases• Database• Standardsandregulations• ByChance

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0% 20% 40% 60% 80% 100%

Withintheenterprise

Suppliersofequipment,materials,…

Clientsorcustomers

Competitors

Consultants

Commercial laboratories/R&Denterprises

Universitiesorotherhighereducation…

Governmentresearchorganizations

Otherpublicsectore.g.Businesslinks,…

Private researchinstitutes

Professionalconferences,meetings

Tradeassociations

Technical/trade press,computerdatabases

Fairs,exhibitions

Technicalstandards

Healthandsafetystandardsand…

Environmental standardsandregulations

High Medium Low Notused

SourceofInnovation(UK)

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Market

Institutional

Other

Specialized

Source:Laursen,K.,Salter,A.,2004.Searchinghighandlow:whattypesoffirmsuseuniversitiesasasourceofinnovation?ResearchPolicy33,1201-1215.

Sample:6,287businessunits,including allmainsectorsoftheUKeconomy,excludingpublicbodies,retail,andhotelsandrestaurants.

Internal

Talkingaboutinnovation…

VolkswagenSamsungIntel

MicrosoftRocheGoogleAmazonToyotaNovartis

Johnson&JohnsonPfizerDaimlerGM

MerckFordSanofiCiscoApple

GlaxoSmithKlineAstraZeneca

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SanofiMicrosoftPfizerFord

DaimlerToyotaGM

SiemensMatsushita

IBMJohnson &JohnsonGlaxoSmithKline

IntelVolkswagen

SonyNokiaHonda

SamsungNovartisRoche

2005 2015Top20R&DSpenders

Source:PWC

HealthcareSoftware&Internet

AutomotiveIndustries

Computing&Electronics

Unsuccessfultechnology-drivenInnovation

• WindowsOSreplacingWindowsXP,launchedin2007• ImprovedGUI,multimedia tools,security,desktopsearch• Salesfellby16%(comparedtopreviousyear).• QuicklyreplacedbyWindows7in2009• Lowusersatisfactionformanyreasons:incompatibilitywithXP-based

HW/SW,tooslow,XPisgoodenough,etc.

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• Globalsatellite phoneservice,launched in1998• $3,000 +$5aminutetalk• $5billioninvested in66satellites andotherinfrastructure• Bankruptin1999(oneofthe20largestbankruptcies,asof1999)• Forecast500,000subscribersbuthadonly10,000• Unabletouseinsidebuildingsorinsidemovingcars(line-of-sightsystem)

Chesbrough,H.,2003.OpenInnovation:thenewimperativeforcreatingandprofitingfromtechnology.HarvardBusinessSchool

Publishing,Boston,MA.

• Xerox– Americanphotocopiermakeranddocumentserviceprovider

• XeroxPARC(PaloAltoResearchCenter)– Founded in1970byassemblingworld-classteamofexpertsininformationandphysicalsciences

– ForXeroxtobe“thearchitectsofinformation”– Inventedtheoriginsoflaserprinting,personalcomputer,Ethernet,GUI,object-oriented programs

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Whytech-drivenfirmsfail?[Researchsetting]Case-based approachinUSsemi-conductorsector

Technologies/talentslefttobecommercializedoutside.

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Source:Chesbrough,H.,2003.OpenInnovation:thenewimperativeforcreatingandprofitingfromtechnology.HarvardBusinessSchoolPublishing,Boston,MA.

11outof35businessideasconsideredasnotpromisingwentIPO.

Hardtopredictneedsifyoustartfromtechnology.

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Source:Chesbrough,H.,2003.OpenInnovation:thenewimperativeforcreatingandprofitingfromtechnology.HarvardBusinessSchoolPublishing,Boston,MA.

Technology(orKnowledge,science)Pushvs.Market (orneed,demand)Pull

R&Dortechbreakthroughdrivesalaunchofanew

product.

Marketdemandforasolutionorneedinthemarketplace

triggersthedevelopment ofanewproduct.

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TechnologyPush MarketPull

Market-drivenInnovation(Technologicallynothingnew)

• FordModelT(1908)– Onlyfortherich->“Acarforeveryman”

($825)

• Lowcostairlines(1970-2000)– Comfortablepassengerservices

-> Onlytransportation

• Grameen bank(1983)(microfinancing)– Onlyforthosewithcredit->Prioritygiven

tothepoor,interestwithintheirreach

• NintendoWii(2006)– Boys->familymembers

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TataNano• Tatagroup

– Indianmultinationalconglomerate• TataNano(2008)

– TargetingIndianlowerclass– “World’scheapestcar”(2,000- 3,000USD)– Tocutcost,itremovedasmany"unnecessary"extrafeaturesas

possible,including:• Airbags,powersteering,anentertainmentsystem,afourthnutoneach

wheel,asecondwindscreenwiper,asecondwingmirror,anexternalfuelfillercap,andatrunkthatopens

• Result– Tooexpensive forthelowermiddleclassandtooshabbyfortheupper

middleclass– Mostcustomersprefer tobuysecond-handcars,whicharemoreor

lessthesameprice.

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Innovationlag

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Source:Tidd&Bessant(2014)p.235

ABS(Anti-lockbrakingsystem)

19591978

+19

Dyneema(reinforcedfiber)

Mobiletelephone

Flashmemory

Contraceptivepill

Airconditioning

19751990

+15

19882001

+13

19461983

+37

19281962

+34

19021915

+13 MarketintroductionDiffusionstarted

TechPushv.MarketPull

• Riskoflookingonlyatneedsthatareeasilyidentifiedbutwithminorpotential

• Continuingtochangethedefinitionoftheopportunity

• Lackofbeingachampionor“truebeliever”

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Source:Burgelman,R.A.,Sayles,L.R.,2004.Transforminginventionintoinnovation:theconceptualizationstage.In:Christensen,C.M.,Wheelwright,S.C.(Eds.),StrategicManagementofTechnologyandInnovation.McGraw-Hill,Boston,pp.682–690.

• Riskofstartingwithwhatcanberesearchedandevaluatedeasily

• Riskofaddressingtheneedsoftheatypicaluser

• Potential forgettinglockedintoonetechnicalsolution

TechnologyPush MarketPull

Cooper&Edgett (2008)Ideationforproductinnovation.PDMAVisionMagazine,March2008

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Howdofirmsfindgoodideas?Howeffectiveiseachmethod?[Researchsetting]Questionnaire-based: 160firms(B2B:68%,B2C:27%;Sales>1B$:45%,>0.5B$:12%,>0.1B$:18%,<0.1B$:25%)

Market-oriented

customervisitteams

ethnographicresearch

customerfocusgroupsforproblemdetection

Lead-usermethods

Customer/Userdesign

Customerbrainstorming

Peripheralvisiontools

Customeradvisoryboard

Communityofenthusiasts

Technology-oriented

Disruptivetechnologies

Internalideacapture

Partnersandvendors

Patentmining

Accessingexternaltechnicalcommunity

Scanningsmallbusinessesandstartups

Externalproductdesign&crowdsourcing

External submittedideas

External ideacontest

ethnographic research

customer visit teams

customer focus groups for problem detectionLead-user methods

Customer/User design

Customer brainstorming Peripheral vision tools

Customer advisory board

Community of enthusiasts Disruptive technologies

Internal idea capturePartners and vendors Patent mining

Accessing external technical communityScanning small businesses and startups

External product design & crowdsourcing

External submitted ideas

External idea contest

45

67

Effe

ctiv

enes

s sc

ore

(0-1

0)

0 10 20 30 40%Frim using the method

market tech

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Source:Cooper&Edgett (2008)

Customervisit

ethnography

FocusgroupsLead-user

UserdesignCustomerBS PeripheryCustomerABEnthusiasts Disruptivetech

InternalideaPartners&vendors Patent

mining

Technicalcommunity

Smallbusiness&startups

ExternalPD

Submittedideas

Ideacontest

HOWDOYOUKNOWMARKETNEEDS?- USER-LEDINNOVATION-

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3M• 3M

– Americanmultinationalconglomerate– $30Bsales;90,000employees; 55,000products

• InciseDrapes– ABreakthroughsurgicaldrapeproduct

• Topreventinfectionduringsurgery• Cheap

• Lead-user(LU)innovationmethod– Assembledateamofleaduserswhichincluded

• Doctorsfromdevelopingcountriesandmilitarymedics:costcontrol;poorenvironmentforsurgery

• Aveterinariansurgeon:costconstraint+experiencewithtoughinfectioncontrol

• AHollywoodmakeupartist:wantingmaterialsnottoirritateactorsandeasytoremove

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ExamplesofUser-ledInnovation• Labdevices

• MedicalSurgeryEquipment(Hinsch etal.,2014)

• Mountainbikingequipment(Luthjeetal.,2005)

• ApacheOSserver softwaresecurityfeature(Franke&vonHippel,2003)

• LibraryInformationSystems(Morrisonetal.,2000)

• PrintedCircuitCADSoftware(UrbanandvonHippel,1988)

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Flowers,S.,Hippel,E.v., Jong,J.d.,Sinozic.,T.,2010.Measuringuserinnovation intheUK:The importanceofproductcreation

byusers.NESTA,UK.

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Howoftendouserscontributetoinnovationprocess?[Researchsetting]Telephonesurveyof1,004UKfirmswith10-250employees,acrossawiderangeofindustries.

0% 10% 20% 30% 40% 50%

SoftwareandITservicesMiningandquarrying

OtherCreativeActivitiesOthermanufacturing

AerospaceandautomotiveFinancialservices

OtherbusinessservicesWholesaletrade

Legal,consultancy,accountingAgricultureandfishing

Retailtrade/personalservicesTransportandcommunication

HotelsandrestaurantsConstruction

EnergyproductionOverall

Createfromscratch

Modifyexistingproduct

Both

Leaduser• Coreusersrecognizemarketneeds inadvance.Theyexpecthighlevelofbenefits fromthesolution,sowillingtopaymore.•Usersengagedininnovationnetwork• Ex)mountainbike,medicaldevice

Typology

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Generalusers

Atypicalusers

Extremeusers• Applyingextremeneedstogeneralconsumers• Ex)ABSaircraftbraking->ordinarycars

Democraticinnovation• Boundarybetweenusersandproducerslessdistinct• Ex)ApacheOSserver,Lego,Adidas(crowd-sourcingapproach)

Lilien,G.L.,Morrison,P.D.,Searls,K.,Sonnack,M.,vonHippel,E.,2002.Performanceassessment oftheleaduseridea-generationprocessfornew

productdevelopment.ManagementScience48,1042-1059.

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Howeffectiveisthelead-userinnovationapproach?[Researchsetting]Comparisonof5lead-user(LU)idea-generationprojectsvs.42conventional(non-LU)projectsthattookplace in3Maround2000LUprojectsinvolveidentifyingandlearningfromleadusersbothwithinthetargetmarketandin“advancedanalog”marketsthathavesimilarneeds inamoreextremeform.

9.6

8.3

146

10

80%

9.6

6.8

5.3

18

7.5

66%

7.3

Noveltycomparedw/competition*

Originality/newnessofcustomerneedsaddressed*

EstimatedsalesinYear5(deflatedforerror)(M$)

Potentialforentireproduct family*

Probabilityofsuccess

Strategicimportance*

LU Non-LU*10-pointscale

p=.01

p=.09

p<.01

p=.03

p=.24

p=.08

Callahan,J.,Lasry,E.,2004.Theimportanceofcustomerinputinthedevelopment ofverynewproducts.R&DManagement 34,

107-120.

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Whenshouldfirmsrelyonusers?[Researchsetting]Questionnairebasedon55productdevelopmentprojectsfromthecomputertelephonyintegrationindustry(e.g.,CISCO,Lucent,etc.)

TechNewness

MarketNewness

Importanceofuserinput

Q:Howimportantwasinputfrompotentialend-usersin(1)ideageneration,(2)requirementdefinition,(3)technicaldevelopment,(4)trial/testing,(5)productlaunch?

Q:Hownewwere(1)technologyembodiedinthenewproduct,(2)productarchitecture,and(3)corecomponentsorsoftwaremodulesinthenewproduct?

Q: Hownewwere(1)customerstargeted,and(2)theuserneedsaddressedbythenewproduct?

DISRUPTIVEINNOVATION

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• By1970s:14-inchHDusedformainframecomputers

• 1978-80:8-inchHDmarketed(thoughwithsmallercapacity)– Toosmallacapacityformainframes– Acceptablecapacityformini computer(in

fact,14-inchwastoomuchforthem.)• Bymid1980s

– 8-inchHDhadsignificant improvementincapacity

– Satisfyingtheneedsofmainframecomputers,replacing14-inchHD

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Christensen,C.M.,1997.Theinnovator'sdilemma.HBSPublishing,Bostom,MA.

Whytechnologyleaderscannotcontinuewinning?[Researchsetting]Casestudyonharddiskmakersinthe1970s– 90s

Paradox• 8-inchHDwasnottechnologicallymoreadvancedthan14-inchHD.• 14-inchHDmakerscouldhaveenteredthe8-inchHDmarket,buttheydidn’t.• Astechnologyadvanced,8-inchmakersreplaced14-inchmakers.

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Theory(1)

Theory(2)DisruptiveInnovation• Drawonexistingtechnologies

– Consistingofoff-the-shelfcomponentsputtogether inaproductarchitecture,oftensimplerthanpriorproducts

• Targetnewmarkets,typicallylowerends,wherealesserextentoftechnologicalsophisticationsuffices

• Incumbentstendtoignorethenewmarketbecauseit’semergingandsmall,andbecauseitstechnologicallylesssophisticatedandlessprofitable.

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RepeatedDisruption

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Source:Christensen,C.M.,1997.Theinnovator'sdilemma.HBSPublishing,Bostom,MA.

LowercapacityButsmaller

Lowercapacity/sizeButgreaterreliability

LowerreliabilityButcheaper

RepeatedDisruption(HDdrive)

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Source:Christensen,C.M.,1997.Theinnovator'sdilemma.HBSPublishing,Bostom,MA.

Insulinfordiabetestreatment

EliLilly(USA)1925:95%purity1950:99%1980:99.999%1982:Syntheticinsulin(thus100%pure)• 1B$investment• CollaboratingwithGenentech• 25%pricepremium NovoNordisk(Denmark)

1985:LaunchedNovoPen• Notimprovementinpurity• Butsimplifyinjectionprocedure

significantly• 30%pricepremium

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1922:Insulinextractedpancreasofcowssavedadiabeticpatientforthefirsttime.

ExamplesofDisruptiveInnovation

• Mainframecomputer→ mini-computer→desktopPC→ notePC

• Harddiskdrive:14inch→ 8→ 5.25→ 3.5 → 2.5)• Britannica(encyclopedia)→MicrosoftEncarta→Wikipedia

• Chemicalphoto→ Digitalphoto• Luxurycar→ FordModelT• Conventionalairline→ Low-costairline• Microsoftoffice→OpenOffice

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INNOVATIONLIFECYCLEANDSEARCHSTRATEGIES

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InnovationLifeCycle

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Discontinuous innovation,someofwhichmaybedisruptive

Typewriterindustry

Manualtypewriter

ElectronicTypewriter

Wordprocessor

DesktopPC+printing

NotePC,tablet,Paperless

Source:http://www.innovation-point.com/Innovation_Lifecycles.pdf

InnovationLifeCycle

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MarketDiffusion

Fluid Dominantdesign Specialized

InnovationLifeCycle

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ProcessinnovationProductinnovation

EmphasisofInnovation

MarketDiffusion

time

Marketdiffusion

Techpush(needsmaybeunclear)

Flexibility inproductdesign

Lead-usermethod

Improvementto dominantproduct:Lowerprice,massproduction,qualitycontrol,etc.

Fluid Dominantdesign Specialized

Democraticinnovation

SearchspaceTechno

logy

New

•Usespecialist group,leadusers•Networksinside/outside→ openinnovation•Oftensymbiosisbetweenestablished firms andentrepreneur

• Entrepreneurshaveadvantage.

Existing

•Workwithsuppliers→strategicalliances• Relationwithcustomers→masscustomization• Established firmshaveadvantage.

• Fringemarket,thebottomofconsumerpyramid(lower end)• Extremeusers• Entrepreneurshaveadvantage.

Current New

Market

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Exploitation

Exploration

ToexpandyourvisionSearchstrategy ModeofoperationSendingoutscouts Dispatchidea hunterstotrackdownnewinnovationtriggersExploringmultiplefutures

Usefutures techniquestoexplorealternativepossiblefutures

Using theWeb Harness thepoweroftheWeb,throughonlinecommunities,andvirtualworldsWorkingwithactiveusers

Teamupwith productandserviceuserstoseethewaysinwhichtheychangeanddevelopexistingofferings

Deepdiving Studywhatpeopleactuallydo, ratherthanwhattheysaytheydoProbeandlearn Useprototypingasamechanismtoexploreemergentphenomenaandactasaboundaryobject

tobringkeystakeholdersintothe innovationprocessMobilize themainstream

Bringmainstreamactorsintotheproduct andservicedevelopmentprocess

Corporateventuring Createanddeploy ventureunitCorporateentrepreneurshipandintrapreneuring

Stimulateandnurturetheentrepreneurial talentinsidetheorganization

Usebrokersandbridges

Casttheideasnetfarandwideandconnectwithotherindustries

Deliberatediversity CreatediverseteamsandadiverseworkforceIdeagenerators Usecreativitytools

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Source:http://www.innovation-portal.info/wp-content/uploads/searchstrat.pdf

EXPLORATIONV.EXPLOITATION

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Explorationvs.exploitation

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SimpleLandscape RuggedLandscape

Improvementincloseproximity(=exploitation)worksfine.

Improvementincloseproximity(=exploitation)canendinlocaloptimum.

Searchindistantareas(=exploration)maybenecessary.

Searchindistantareas(=exploration)canbewasteful.

KeyQuestions

• Doorganizationsneedbothexplorationandexploitation?

• Shouldorganizationssimultaneouslyexploreandexploit?

• Forwhatenvironmentisexplorationorexploitationappropriate?

• Whatmanagementstyleshelpexplorationorexploitation?

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Organizationsareconsideredhigh-performerifdifferencebetweentherealityenvironmentandtheorganizationalcodeissmall.

March,J.G.,1991.EXPLORATIONANDEXPLOITATION INORGANIZATIONALLEARNING.OrganizationScience2,71-87.

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Howdoexplorationandexploitationaffecttheorganizationalperformance?[Researchsetting]Multi-agentsimulation

Environmentexpressedas

m-digit of(-1,1)e.g.,[-1,1,…,1]

Individual’sbeliefabouttheenvironment

(m-digitsofn-individuals)

Organizationalcode(m-digit)

OrganizationalLearning(P1)

Socialization(P2)

Turnover(p3)(=exploration)

Dynamicsofchangingenvironment(p4)

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Slowsocialization(p1)andfastorglearning(p2)leadstohigherperformance.

Mediumturnover(p3)(=exploration)leadstohighperformancewithfastsocialization(p1).

Indynamicenvironment(p4),lowturnover(p3)(=exploitation) leadstolowperformance.

Orgperform

ance

Source:March,J.G.,1991.EXPLORATIONANDEXPLOITATIONINORGANIZATIONALLEARNING.OrganizationScience2,71-87.

Socializationrate(p1) Turnoverrate(p3) Time

Fastorglearning(p2=0.9)

Sloworglearning(p2=0.1)

Slowsocialization(p1=0.1)

Fastsocialization(p1=0.9)

Withturnover(p3=0.1)

Noturnover(p3=0)

He,Z.L.,Wong,P.K.,2004.Explorationvs.exploitation:Anempiricaltestoftheambidexterityhypothesis.Organization

Science15,481-494.

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Shouldorganizationssimultaneouslyexploreandexploit?[Researchsetting]Surveyof563manufacturingfirmsinSingapore/Malaysia in1999/2000

• Literaturerepeatedarguesthatbothexplorationandexploitationarenecessaryforsustainableinnovationperformance.– Theymaybesimultaneouslypursued(so-called“ambidexterity”),whiletheymaybedonesequentiallyindifferentpointsintime(so-called“temporaldifferentiation”).

• Littleempiricalevidencehadexisted.

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Source:He,Z.L.,Wong,P.K.,2004.Explorationvs.exploitation:Anempiricaltestoftheambidexterityhypothesis.OrganizationScience15,481-494.Note:Notes.Chi-square=146887;d.f.=107;p=0006;Normedchi-square=1373;GFI=0933;CFI=0952;NFI=0861;RMSEA=0046.∗p<010;∗∗p<005;∗∗∗p<001;two-tailedtest.Thissimplifiedmodeldoesnotshowcontrolvariables,errorterms,ortheindicator variablesofthelatentconstructs.Twolatentconstructs,explorativeinnovationstrategyandexploitativeinnovationstrategy,arerepresentedbyovals.Observedvariablesarerepresentedbyrectangles.

Objectiveofproject(1)[5-pointscale]• Introducenewgenerationofproducts• Extendproductrange• Openupnewmarkets• Enternewtechnologyfields

Objectiveofproject(2)[5-pointscale]• Improveexistingproductquality• Improveproductionflexibility• Reduceproductioncost• Improveyieldorreducematerialconsumption

AmbidexterityProductof(1)and(2)

%Totalannualsalesthatconsistofnew/improvedproductsintroducedoverthelastthreeyears

%Annualproductionvolumeusingnew/improvedprocessesintroducedoverthelastthreeyears

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Whatmanagementstyleshelpexplorationorexploitation?[Researchsetting]Surveyof56exploratoryprojectsinlargefirms(e.g.,Hewlett-Packard);manufacturing45%,service50%,retail5%.Response fromprojectleaderand3+members

McGrath,R.G.,2001.Exploratorylearning,innovativecapacity,andmanagerialoversight.AcademyofManagement Journal44,

118-131.

Z:LearningeffectivenessResultsachievedbyprojectis[-10]farworse– [+10]farbetterthanexpected.Y:Taskautonomy

Employees intheprojectwerehandledin [-2]supervised– [+2]autonomous manner.

X:ExplorationTheproject is[-2]notnewatall– [+2]entirelynewtoyourfirm.

Jansen,J.,VandenBosch,F.,Volberda,H.,2006.Exploratoryinnovation,exploitativeinnovation,andperformance:Effectsoforganizationalantecedents and

environmentalmoderators.ManagementScience52,1661-1674.

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Forwhatenvironmentisexplorationorexploitationappropriate?[Researchsetting]Surveyof283organizationalunitmanagersofalargeEuropeanfinancialservicefirm(top30onFortuneGlobal500)

Financialperform

ance

Financialperform

ance

LowHighExploratory Innovation

LowHighExploitative Innovation

HighdynamismLowdynamism

OTHERSOURCES

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Technologicalreuse• Benchmarking• Imitationofproduct

– Reverseengineering– Copyanddevelop– pirate

• Imitationofprocess(cases)– Southwestairlines:copyingpit-stoptechniquesofFormula1GrandPrix

– Karolinska Hospital:inventorymanagement inadvancedfactories

– Manymanufacturers:leanproductionmanagementofToyota

• Recombinantinnovation

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Exogenousshock• Regulation– Protectionofenvironment

• Cleantechnologies– Deregulation

• E.g.,Privatizationoftelecommunications– Counterinnovation

• E.g.,Highspeedcamerainhighways->detectionofHScamera

• Accident– serendipity– 3MPost-It– PfizerViagra

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SUMMARY

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Summary• TechnologyandMarket

– Technologyleaderscanpaytoomuchfocusontechnologicalopportunities,overlookingmarketdemands.

– Newtechnologyalonedoesnotproducevalue.Marketneedsmustbemet.– Indeed,identifyingnewmarketdemandsalonecanleadtoinnovation.

• User-led Innovation– Userscanbeasourceofinnovationandareincreasinglyusedasanimportantsourceof

innovationinvariousindustries.• DisruptiveInnovation

– DIisatypicalformofinnovationobservedwhentechnologydevelopstooquickly.– Establishedfirmslosecompetitivenessbyallowingnewentrants’intoemerging/fringemarkets.

• InnovationLifecycleandStrategy– Innovationprogresseswithafewstages,ateachofwhichdifferentstrategiesareneeded.

• ExplorationandExploitation– Exploitationandexplorationaretwoapproachestoinnovation,bothneededforsustainable

innovation.– Exploitationandexplorationareappropriateindifferentexternalenvironmentsandareeffective

underdifferentmanagerialconditions.

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REFERENCES

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• Burgelman,R.A.,Sayles,L.R.,2004.Transforminginventionintoinnovation:theconceptualizationstage.In:Christensen,C.M.,Wheelwright,S.C.(Eds.),StrategicManagementofTechnologyandInnovation.McGraw-Hill,Boston,pp.682–690.

• Callahan,J.,Lasry,E.,2004.Theimportanceofcustomerinputinthedevelopmentofverynewproducts.R&DManagement34,107-120.

• Chesbrough,H.,2003.OpenInnovation:TheNewImperativeforCreatingandProfitingfromTechnology.HarvardBusinessSchoolPress,Boston.

• Christensen,C.M.,1997.Theinnovator'sdilemma.HBSPublishing,Bostom,MA.• Cooper&Edgett (2008)Ideationforproductinnovation.PDMAVisionMagazine,March2008

• Flowers,S.,Hippel,E.v.,Jong,J.d.,Sinozic.,T.,2010.MeasuringuserinnovationintheUK:Theimportanceofproductcreationbyusers.NESTA,UK.

• He,Z.L.,Wong,P.K.,2004.Explorationvs.exploitation:Anempiricaltestoftheambidexterityhypothesis.OrganizationScience15,481-494.

• Jansen,J.,VandenBosch,F.,Volberda,H.,2006.Exploratoryinnovation,exploitativeinnovation,andperformance:Effectsoforganizationalantecedents andenvironmentalmoderators.ManagementScience52,1661-1674.

• Lilien,G.L.,Morrison,P.D.,Searls,K.,Sonnack,M.,vonHippel,E.,2002.Performanceassessment oftheleaduseridea-generationprocessfornewproductdevelopment.ManagementScience48,1042-1059.

• March,J.G.,1991.EXPLORATIONANDEXPLOITATIONINORGANIZATIONALLEARNING.OrganizationScience2,71-87.

• McGrath,R.G.,2001.Exploratorylearning,innovativecapacity,andmanagerialoversight.AcademyofManagementJournal44,118-131.

• Tidd,J.,Bessant,J.,2014.Strategicinnovationmanagement.Wiley,NJ.

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ASSIGNMENTS

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ReadInnovationStudiesLiterature1. Introduction

– Generalproblemabouttobediscussed– Whytheproblemisworthstudying

2. Theory&Hypothesis– Whatisknown&whatisunknown– Hypothesistobetested– Justificationforthehypothesis

3. Method&Data– Data&approachtotestthehypothesis

4. Result– Ifthehypothesisissupportedornot

5. Conclusion&Implication– Summaryofresults– Implication:whattheresultmeanstopolicymakers– Limitation– Futureresearchdirections

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Assignment

• Pickonepaperfromthelist• Findahypothesis• Explainrationalebehindthehypothesis• Explainwhythehypothesisisrelevant.• Expressthehypothesisinmathematicalterms• Identifykeycomponentsthatappearinthemath,andexplainmeasurementsusedinempiricalresearchforeachcomponent

• Identifythesampleandthejustification

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