Solution Manual for Strategic Management of Technological Innovation, 6th Edition, Melissa Schilling

Solution Manual for Strategic Management of Technological Innovation, 6th Edition, Melissa Schilling

Table of 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