Search & Selection for Opportunities(Disruptive

Innovation Strategy)Mr.Panitha Phongphaew ID5223030387

Miss.Natcha Tanatkitcharoen ID5223030502

MTT 18

Thammarat University

Next Generation Technologies

Next Generation Technologies

Innovation Life Cycle-From Discontinuity to Steady-state

Innovation characteristic

Fluid pattern Transitional phase(Target phase)

Specific phase(Technical phase)

Competitive emphasis placed on…

Functional product performance

Product variation Cost reduction

Innovation stimulated by… Information on user needs, technical inputs

Opportunities Created by expanding internal technical capability

Pressure to reduce cost, improve quality, etc.

Predominant type of innovation

Frequent major changes in products

Major process innovations required by rising volume

Incremental product and process innovation

Product Line Diverse, often including custom designs

Includes at least one stable or dominant design

Mostly undifferentiated standard products

Production processes Flexible and inefficient-aim is to experiment and make frequent changes

Becoming more rigid and defined

Efficient, often capital-intensive and relatively rigid.

Stages in the innovation life cycle

Source

Opportunity

Problem

The Problem and the Opportunity in Discontinuous Innovation

• Approach• Searching in unlikely places• Building links to strange partners• Allocating resources to high-risk ventures• Exploring new ways of looking at the business

Disruptive Innovation ในอุตสาหกรรม ทำาใหเ้กดิ

• New Entrance เข้ามาในตลาด• Establish Player พัฒนาศักยภาพ

• Technology Shift• New Market Emerge• Regulatory rules of game move• A different set of capabilities for organizing and managing innovation.

ExampleTriggers/ sources of discontinuity

Sources of discontinuity

Establish Player

Manage Discontinuous Innovation

Type 1

Operates within mental framework based on clear and accepted set of rules of the game

Strategies path-dependent

Clear selection environment

Selection and resource allocation linked to clear trajectories and criteria for fit

Operating routines refined and stabled

Strong ties and knowledge flows along clear channels

Type 2

No clear rules- these emerge over time High tolerance for ambiguity

Path-independent,emergent, probe and learn

Fuzzy, emergent selection environment

Risk-taking, multiple parallel bets, tolerance of (fast) failure

Operating patterns emergent and ‘fuzzy’

Weak ties and peripheral vision important

New Entrance

Do we Need a New Model for Managing Innovation?

How to Search for the Unexpected?Strategic principle Why it matters Why it’s hard to do

Being there New thing don’t arrive fully formed

But being in there means making investments in exploring spaces

Get in early Discontinuous shifts do not emerge fully formed but emerge over time

Where and when do you start committing resources?

Diversity-enabling odd conversations

Discontinuity is often the result of unexpected conjunctions

Maintain existing networks is expensive but returns justify this.

Try things out-probe and learn

Risk aversion and difficulty of justifying radical experiments

Make early bets Active co-evolution rather than passive waiting for the trend to develop

Risk aversion and project selection system which favors the safe bets

Work with the ‘fuzzy front end’

Emergence is a process which is high on ambiguity

Low tolerance of ambiguity

Think along different tracks

Need to reframe to see the relevance of emerging phenomena

Linear thinking, inability to view with alternative perspectives, dominant logic blinders.

Key Concepts - Disruptive InnovationDisruptive innovationDescribes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.

Two Approaches

Two Approaches

Example

Example

Conclusion