Strategic Management of Technological Innovation 5th Edition

Instructors Manual Strategic Management of Technological Innovation, 5e Instructors Manual CHAPTER 1 The Importance of Technological Innovation SYNOPSIS OF CHAPTER The purpose of this chapter is to set the stage for the course by establishing the importance of managing technological innovation strategically. First the chapter overviews the importance of technological innovation for a firms

ANSWERS TO DISCUSSION QUESTIONS 1. Why is innovation so important for firms to compete in many industries? Innovation enables firms to: -introduce more product and service variations, enabling better market segmentation and penetration; -improve existing products and services so that they provide better utility to customers;-improve production processes so that products and services can

Chapter 10 Organizing for Innovation SYNOPSIS OF CHAPTER Size and structure impact the organizations ability to innovate and effectively implement technology in ways that do not always make the selection of the best organizational structure obvious. While a larger firm may have the advantage of economies of scale in R&D and better access

ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. What are the advantages and disadvantages of the creative side of Google being run as a flexible and flat technocracy? Googles technocracy would have many of the advantages associated with an organic structure: employees have more freedom to experiment and improvise; the lack of a

Instructors Manual Chapter 11 Managing the New Product Development Process SYNOPSIS OF CHAPTER For the new product development process to be successful, the objectives of maximizing fit with customer requirements, minimizing time-to-market, and controlling development costs must be achieved. This chapter overviews some of the best practices for improving both the effectiveness and efficiency

ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. How does Skullcandy's new product development activities affect its ability to (a) maximize the t with customer needs, (b) minimize development cycle time, and (c) control development costs? To maximize the fit with customer needs, Skullcandy worked closely with celebrity disc jockeys and performers

Chapter 12 Managing New Product Development Teams SYNOPSIS OF CHAPTER By using teams to solve new product development issues, organizations benefit from the experience and knowledge base of several individuals. Team size, composition, structure, leadership and administration are all factors that will impact the success of a new product development team. The optimal

ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. Why does Disney keep its development teams small? Disneys Director of Systems, Jonathan Geibel, had noticed that when teams had seven or more participants, individual contribution would drop significantly, lowering the quality of the discussion. Geibel thus determined that teams should only have between two

Instructors Manual Chapter 13 Crafting a Deployment Strategy SYNOPSIS OF CHAPTER A deployment strategy should accelerate adoption of new products through the use of effective timing, licensing and compatibility, pricing, distribution, and marketing strategies. A new product launch may be timed to take advantage of business cycle or seasonal effects. The introduction needs to

Instructors Manual ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. What factors do you think enabled Sega to break Nintendos near monopoly of the U.S. video game console market in the late 1980s? Nintendo was earning high profits on its 8-bit systems and was unwilling to cannibalize sales of 8-bit games by introducing a

Instructors Manual CHAPTER 2 Sources of Innovation SYNOPSIS OF CHAPTER In this chapter we discuss the role of creativity as the underlying process for the generation of novel and useful ideas. Individual creativity is considered to a function of intellectual abilities, knowledge, thinking styles, personality traits, intrinsic motivation and environment. Firm creativity is more

Instructors Manual ANSWERS TO OPENING CASE QUESTIONS 1. What factors do you think enabled Iddan, an engineer with no medical background, to pioneer the development of wireless endoscopy? Counterintuitive though it may seem, sometimes NOT being an expert in a particular field is conducive to creating breakthrough innovation in that field. Because

Instructors Manual CHAPTER 3 Types and Patterns of Innovation SYNOPSIS OF CHAPTER The focus of this chapter is helping students to understand the typical patterns of technological innovation in order to provide a foundation for the formulation of a technology strategy. The chapter begins by reviewing the different dimensions that are used to distinguish between

Instructors Manual ANSWERS TO OPENING CASE QUESTIONS 1. Is the Tesla Model S a radical innovation or an incremental innovation? Competence enhancing or destroying, and from whose perspective? Is it a component or an architectural innovation? May students will argue that the Model S is an incremental innovation in that a) electric

Instructors Manual Chapter 4 Standards Battles and Design Dominance SYNOPSIS OF CHAPTER The focus of this chapter is on identifying the reasons why most industries adopt a dominant design and why a particular firms technology is adopted as the dominant design. The key factors driving industries to adopt a dominant design include increasing returns to

Instructors Manual ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. What are some of the advantages and disadvantages of mobile payment systems in a) developed countries and b) developing countries? In developed countries, people have become increasingly comfortable with mobile solutions, and increasingly expect transactions to be quick, convenient, and modern. A very large

Chapter 5 Timing of Entry SYNOPSIS OF CHAPTER This chapter examines the timing factors that influence a technologys likelihood of success. The chapter discusses first mover advantages (e.g. building brand loyalty and technological leadership, preemption of scarce resources, exploiting switching costs) and disadvantages (e.g. higher spending on R&D, supplier development, distribution channels

ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. Why did the first social networking sites fail? Is there anything they could have done to survive? The early social networking sites exhibited most of the classic first-mover disadvantages: Uncertain customer requirements, immature distribution channel (i.e., broadband did not yet have high penetration), and immature

Chapter 6 Defining the Organizations Strategic Direction SYNOPSIS OF CHAPTER The chapter begins by highlighting the importance of conducting both internal and external (Porters Five Forces and Stakeholder) analyses in order to lay the foundation for selecting a firms strategic direction. An internal analysis begins with an assessment of the firms strengths and

ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. What are some of the challenges and opportunities of competing in the hotel industry? How do you think the hotel industry (or travel industry more generally) has changed over time? The instructor could do a complete Porters 5-force analysis of the hotel industry with students

Instructors Manual Chapter 7 SYNOPSIS OF CHAPTER This chapter overviews the most commonly used qualitative, quantitative, and combination methods used to evaluate new product development projects. The chapter emphasizes that each method has its strengths and weaknesses, and that most firms will (or should) use a combination of methods in order to

Instructors Manual ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. Why does Nayak say it's important to "start with the pictures not with the numbers"? Nayak believed that it was extremely important for innovators to begin by attempting to gain deep insight into a customer problem through extensive observation rather than financial or technical

Instructors Manual CHAPTER 8 Collaboration Strategies SYNOPSIS OF CHAPTER In this chapter the factors that determine whether or not collaboration is the optimal strategy for an organization are identified. Among the issues to be considered are the availability of necessary resources, the risk that collaboration will expose proprietary resources to expropriation, the level of

Instructors Manual ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. What were the pros and cons of Sangamo pursuing its gene editing programs alone versus working with a partner? Sangamo was clearly very reliant on funds from partners to pursue its research programs. Large partners were also much more likely to have clinical testing

Instructors Manual CHAPTER 9 Protecting Innovation SYNOPSIS OF CHAPTER A firms ability to generate rents from innovation is a function of the ease with which competitors can copy the innovation. This factor makes the choice to protect the innovation and the choice of the protection mechanism an important part of the overall strategy. There

Instructors Manual ANSWERS TO OPENING CASE DISCUSSION QUESTIONS 1. What industry conditions lead to the revolution in audio distribution described above? Which stakeholders stand to benefit most (or least) from this revolution? From the perspective of competitors in the recorded music industry (i.e., record labels), some of the industry conditions that lead

(p. 226)-The customization of products and processes to a local market makes them particularly difficult to transfer to divisions serving different markets. TRUE TRUE TRUE (p. 57)-Firms cannot influence the shape of the s-curve through their development activities. FALSE FALSE FALSE (p. 242)-A company with a short development cycle can quickly revise

(p. 34)-Which of the following statements is true of geographical clustering? A. The proximity of many competitors serving a local market leads to competition that increases their pricing power in their relationships with both buyers and suppliers. B. Close proximity of firms eliminates the likelihood of a firm's competitors gaining access

(p. 163)-Product life cycles shorten with high-speed technological changes. TRUE TRUE TRUE (p. 114)-Weekly News Inc. bought the paper mill that supplied paper for printing its magazine. This is an example of horizontal integration. FALSE FALSE FALSE (p. 3)-Externalities are costs that are borne by individuals other than those responsible for

(p. 269)-Homogeneous teams should possess more information, on average, than heterogeneous groups. FALSE FALSE FALSE (p. 137)-Standard discounted cash flow analysis has the potential to severely undervalue a development project's contribution to a firm. TRUE TRUE TRUE (p. 84)-Network externality returns refers to the value customers reap as a larger portion of

(p. 47)-The path a technology follows through time is termed as technology trajectory. TRUE TRUE TRUE (p. 51-52)-S-curves in technology performance and s-curves in technology diffusion are fundamentally different processes. TRUE TRUE TRUE (p. 295)-If a firm's objective is maximum market skimming, it will initially set a high price on new

(p. 113)-According to Porter's five-force model, the degree to which a firm relies on one or a few suppliers will influence its ability to negotiate good terms. TRUE TRUE TRUE (p. 102)-Many start-up firms demise because new innovations tend to be adopted very slowly at first. TRUE TRUE TRUE (p. 82)-When an

(p. 143-144)-Coolers Inc. has developed a new generation of air conditioners. It has upgraded the old technology by making the air conditioners work on voice sensors instead of remote control. Though the technology is new, Coolers has decided to introduce the product in the market at a low cost. This

(p. 112)-In general, the more firms competing that are of comparable size, the more competitive the industry will be. TRUE TRUE TRUE (p. 131)-The ratio of R&D expenditures to sales is known as R&D trajectory. FALSE FALSE FALSE (p. 291)-The value of a technological innovation is solely determined by what the

(p. 217)-Large and hierarchical firms disaggregate in order to: A. lengthen new product development cycles. B. prevent large-scale downsizing. C. become more responsive to technological changes. D. curb the entrepreneurial culture within them. C. C. C. (p. 304)-Which of the following statements is true of innovators and early adopters? A. They are unwilling to take risks and