Strategic management of technological innovation / Melissa A. Schilling

About the Author Melissa A. Schilling is the Herzog Family Professor of Management at New York University Stern School of Business. She received her Bachelor of Science in business administration from the University of Colorado at Boulder, and a Doctor of Philosophy in strategic management from the University of Washington. Professor Schilling?s research focuses on innovation and strategy in high technology industries such as smartphones, video games, pharmaceuticals, biotechnology, electric vehicles, and renewable energies. She is particularly interested in platform dynamics, networks, creativity, and breakthrough innovation. This textbook, Strategic Management of Technological Innovation, is the number one innovation strategy text in the world. She also recently published Quirky:The Remarkable Story of the Traits, Foibles, and Genius Breakthrough Innovators Who Changed the World. Her research in innovation and strategy has earned her awards such as the National Science Foundation's CAREER Award, and the Best Paper in Management Science and Organization Science for 2007 Award. Her research has also appeared in leading academic journals such as Academy of Management Journal, Academy of Management Review, Management Science, Organization Science, Strategic Management Journal, Journal of Economics and Management Strategy, Journal of Alzheimer?s Disease, and Research Policy. She also sits on the editorial review boards of Organization Science, Strategic Organization, Strategy Science, and Academy of Management Discoveries. Professor Schilling teaches courses in technology and innovation management, strategic management, corporate strategy, and strategy for social-mission-based organizations

CONTENTS: Chapter 1 Introduction 1 The Importance of Technological Innovation 1 The Impact of Technological Innovation on Society 2 Innovation by Industry: The Importance of Strategy 4 The Innovation Funnel 4 The Strategic Management of Technological Innovation 6 Summary of Chapter 9 Discussion Questions 10 Suggested Further Reading 10 Endnotes 10 PART ONE INDUSTRYDYNAMICS OF TECHNOLOGICALINNOVATION 13 Chapter 2 Sources ofInnovation 15 The Rise of ?Clean Meat? 15 Overview 19 Creativity 20 Individual Creativity 20 Organizational Creativity 22 Translating Creativity Into Innovation 24 The Inventor 24 Innovation by Users 26 Research and Development by Firms 27 Firm Linkages with Customers, Suppliers, Competitors, andComplementors 28 Universities and Government-Funded Research 30 Private Nonprofit Organizations 32 Innovation in Collaborative Networks 32 Technology Clusters 33 Technological Spillovers 36 Summary ofChapter 37 DiscussionQuestions 38 Suggested Further Reading 38 Endnotes 39 Chapter 3 Types andPatterns of Innovation 43 Innovating in India: The Chotukool Project 43 Overview 46 Types ofInnovation 46 Product Innovation versus Process Innovation 46 Radical Innovation versus Incremental Innovation 47 Competence-Enhancing Innovation versus Competence-DestroyingInnovation 48 Architectural Innovation versus Component Innovation 49 Using the Dimensions 50 Technology S-Curves 50 S-Curves in Technological Improvement 50 S-Curves in Technology Diffusion 53 S-Curves as a Prescriptive Tool 54 Limitations of S-Curve Model as a Prescriptive Tool 55 Technology Cycles 56 Summary of Chapter 62 Discussion Questions 63 Suggested Further Reading 63 Endnotes 64 Chapter 4 StandardsBattles, Modularity, and PlatformCompetition 67 A Battle for Dominance in Mobile Payments 67 Overview 71 WhyDominant Designs Are Selected 71 Learning Effects 72 Network Externalities 73 Government Regulation 76 The Result: Winner-Take-All Markets 76 Multiple Dimensions of Value 77 A Technology?s Stand-Alone Value 78 Network Externality Value 78 Competing for Design Dominance in Markets with Network Externalities 83 Modularity and Platform Competition 87 Modularity 87 PlatformEcosystems 89 Summary of Chapter 91Discussion Questions 92 Suggested Further Reading 92 Endnotes 93 Chapter 5 Timing ofEntry 95 UberAIR 95 Overview 98 First-Mover Advantages 98 Brand Loyalty and Technological Leadership 98 Preemption of Scarce Assets 99 Exploiting Buyer Switching Costs 99 Reaping Increasing Returns Advantages 100 First-Mover Disadvantages 100 Research and Development Expenses 101 Undeveloped Supply and Distribution Channels 101 Immature Enabling Technologies and Complements 101 Uncertainty of Customer Requirements 102 Factors Influencing Optimal Timing of Entry 104 Strategies to Improve Timing Options 108 Summary of Chapter 108 Discussion Questions 109 Suggested Further Reading 109 Endnotes 110 PART TWO FORMULATINGTECHNOLOGICAL INNOVATION STRATEGY 113 Tesla, Inc. in 2018 115 Overview 123 Assessing the Firm?s Current Position 123 External Analysis 123 Internal Analysis 127 Identifying Core Competencies and Dynamic Capabilities 131 Core Competencies 131 The Risk of Core Rigidities 132 Dynamic Capabilities 133 Strategic Intent 133 Summary of Chapter 137 Discussion Questions 138 Suggested Further Reading 139 Endnotes 139 Chapter 7 Choosing Innovation Projects 141 Where Should We Focus Our Innovation Efforts?An Exercise 141 Overview 146 The Development Budget 146 Quantitative Methods For Choosing Projects 149 Discounted Cash Flow Methods 149 Real Options 152 Disadvantages of Quantitative Methods 154 Qualitative Methods for Choosing Projects 154 Screening Questions 155 The Aggregate Project Planning Framework 157 Q-Sort 159 Combining Quantitative and Qualitative Information 159 Conjoint Analysis 159 Data Envelopment Analysis 161 Summary of Chapter 163 Discussion Questions 163 Suggested Further Reading 164 Endnotes 164 Chapter 8 Collaboration Strategies 167 Ending HIV? Sangamo Therapeutics and Gene Editing 167 Overview 175 Reasons for Going Solo 175 1. Availability ofCapabilities 176 2. Protecting ProprietaryTechnologies 176 3. Controlling Technology Development and Use 176 4. Building and RenewingCapabilities 177 Advantages of Collaborating 177 1. Acquiring Capabilities and Resources Quickly 177 2. Increasing Flexibility 178 3. Learning from Partners 178 4. Resource and Risk Pooling 178 5. Building a Coalition around a Shared Standard 178 Types of Collaborative Arrangements 178 Strategic Alliances 179 Joint Ventures 181 Licensing 182 Outsourcing 183 Collective Research Organizations 184 Choosing a Mode of Collaboration 184 Choosing and Monitoring Partners 187 Partner Selection 187 Partner Monitoring and Governance 191 Summary of Chapter 192 Discussion Questions 193 Suggested Further Reading 193 Endnotes 194 Chapter 9 Protecting Innovation 197 The Digital Music Distribution Revolution 197 Overview 201Appropriability 202 Patents, Trademarks, and Copyrights 202 Patents 203 Trademarks and Service Marks 207 Copyright 208 Trade Secrets 210 The Effectiveness and Use of Protection Mechanisms 211 Wholly Proprietary Systems versus Wholly Open Systems 212 Advantages of Protection 213 Advantages of Diffusion 215 Summary of Chapter 218 Discussion Questions 219 Suggested Further Reading 219 Endnotes 220 PART THREEIMPLEMENTING TECHNOLOGICAL INNOVATION STRATEGY 223 Chapter 10 Organizingfor Innovation 225 Organizing for Innovation at Google 225 Overview 227 Size and Structural Dimensions of the Firm 228 Size: Is Bigger Better? 228 Structural Dimensions of the Firm 230 Centralization 230Formalization and Standardization 231 Mechanistic versus Organic Structures 232 Size versus Structure 234 The Ambidextrous Organization: The Best of Both Worlds? 234 Modularity and ?Loosely Coupled? Organizations 236 Modular Products 236 Loosely Coupled Organizational Structures 237 Managing Innovation Across Borders 240 Summary of Chapter 243 Discussion Questions 244 Suggested Further Reading 244 Endnotes 245 Chapter 11 Managingthe New Product Development Process 249 Scrums, Sprints, and Burnouts: Agile Development at Cisco Systems 249 Overview 252 Objectives of the New Product Development Process 252 Maximizing Fit with Customer Requirements 252 Minimizing Development Cycle Time 253 Controlling Development Costs 254 Sequential versus Partly Parallel Development Processes 254 Project Champions 257 Risks of Championing 257 Involving Customersand Suppliers in the Development Process 259 InvolvingCustomers 259 InvolvingSuppliers 260 Crowdsourcing 260 Tools for Improving the New Product Development Process 262 Stage-GateProcesses 262 Quality FunctionDeployment (QFD)?The House of Quality 265 Design forManufacturing 267 Failure Modes andEffects Analysis 267 Computer-AidedDesign/Computer-Aided Engineering/Computer-Aided Manufacturing 268 Tools for MeasuringNew Product Development Performance 269 New ProductDevelopment Process Metrics 271 Overall InnovationPerformance 271 Summary ofChapter 271 DiscussionQuestions 272 Suggested FurtherReading 272 Endnotes 273 Chapter 12 ManagingNew Product Development Teams 277 Innovation Teams at the Walt Disney Company 277 Overview 279 Constructing New Product Development Teams 280 Team Size 280 TeamComposition 280 The Structure of New Product Development Teams 285 Functional Teams 285Lightweight Teams 286 Heavyweight Teams 286 Autonomous Teams 286 The Management of New Product Development Teams 288 Team Leadership 288 Team Administration 288 Managing Virtual Teams 289 Summary of Chapter 292 Discussion Questions 292 Suggested Further Reading 293 Endnotes 293 Chapter 13 Crafting a Deployment Strategy 297 Deployment Tactics inthe Global Video Game Industry 297 Overview 306 Launch Timing 306 Strategic LaunchTiming 306 Optimizing Cash Flowversus Embracing Cannibalization 307 Licensing and Compatibility 308 Pricing 310 Distribution 312 Selling Direct versus Using Intermediaries 312 Strategies forAccelerating Distribution 314 Marketing 316 Major Marketing Methods 316 Tailoring the Marketing Plan to Intended Adopters 318 Using Marketing toShape Perceptions and Expectations 320 Summary of Chapter 323 Discussion Questions 324 Suggested Further Reading 324 Endnotes 325

SUMMARY : Melissa Schillings Strategic Management of Technological Innovation, is the #1 innovation strategy text in the world. It approaches the subject of innovation management as a strategic process, and is organized to mirror the strategic management process used in most strategy textbooks, progressing from assessing the competitive dynamics of a situation to strategy formulation, to strategy implementation.

600-699