Podcast
Questions and Answers
What does 'strategic' refer to in the context of war?
What does 'strategic' refer to in the context of war?
How wars are won, including when, where, and whether to fight battles, as well as preparing for war by understanding external threats and opportunities.
What are tactical issues in an innovation perspective?
What are tactical issues in an innovation perspective?
How firms manage R&D activities, develop new products and services, and improve operations.
What are strategic matters in an innovation perspective?
What are strategic matters in an innovation perspective?
Analysis of the firm's competitive and technological environment, and assessment of its external challenges and opportunities.
What is the main difference between innovation strategy and mainstream business strategy?
What is the main difference between innovation strategy and mainstream business strategy?
Why are common approaches to business strategy often inappropriate for innovative businesses?
Why are common approaches to business strategy often inappropriate for innovative businesses?
What is the role of uncertainty in the strategic management of incremental innovation?
What is the role of uncertainty in the strategic management of incremental innovation?
What is the 'fog of war' in the context of innovation strategy?
What is the 'fog of war' in the context of innovation strategy?
What is the goal of innovation strategy?
What is the goal of innovation strategy?
What is the focus of innovation strategy according to Hambrick and Frederickson (2001)?
What is the focus of innovation strategy according to Hambrick and Frederickson (2001)?
What type of strategy is described as implicit and only partially communicated to staff, customers, and suppliers?
What type of strategy is described as implicit and only partially communicated to staff, customers, and suppliers?
What kind of sectors or markets often have explicit strategies for innovation?
What kind of sectors or markets often have explicit strategies for innovation?
What is a key feature of sound, enacted innovation strategies?
What is a key feature of sound, enacted innovation strategies?
What should an innovation strategy involve in terms of market understanding?
What should an innovation strategy involve in terms of market understanding?
What is an important aspect of an innovation strategy in terms of resources and capabilities?
What is an important aspect of an innovation strategy in terms of resources and capabilities?
What is a common characteristic of innovation strategies in rapidly changing or emerging sectors?
What is a common characteristic of innovation strategies in rapidly changing or emerging sectors?
Why do some parts of a business have a relatively straightforward innovation process?
Why do some parts of a business have a relatively straightforward innovation process?
What is often required in more complex and difficult-to-manage innovation processes?
What is often required in more complex and difficult-to-manage innovation processes?
What is a key aspect of an innovation strategy in terms of long-term objectives?
What is a key aspect of an innovation strategy in terms of long-term objectives?
What does awareness of what can and cannot be embraced underpin?
What does awareness of what can and cannot be embraced underpin?
What do tools and techniques assist firms in?
What do tools and techniques assist firms in?
What is the main idea of Box 4.3 Insights from corporate strategy and planning?
What is the main idea of Box 4.3 Insights from corporate strategy and planning?
Who identified four levels of uncertainty that affect the ability to develop meaningful strategy?
Who identified four levels of uncertainty that affect the ability to develop meaningful strategy?
What is Level 1 uncertainty according to Courtney, Kirkland, and Viguerie?
What is Level 1 uncertainty according to Courtney, Kirkland, and Viguerie?
What is Level 2 uncertainty according to Courtney, Kirkland, and Viguerie?
What is Level 2 uncertainty according to Courtney, Kirkland, and Viguerie?
What is Level 3 uncertainty according to Courtney, Kirkland, and Viguerie?
What is Level 3 uncertainty according to Courtney, Kirkland, and Viguerie?
What is the purpose of assessing the level of uncertainty in strategy development?
What is the purpose of assessing the level of uncertainty in strategy development?
What is one of the advantages of being a first mover in a market?
What is one of the advantages of being a first mover in a market?
What is the term used to describe firms that quickly follow innovators in the market?
What is the term used to describe firms that quickly follow innovators in the market?
Who developed the first ballpoint pens?
Who developed the first ballpoint pens?
What is one of the factors that can enhance the advantages of being a first mover?
What is one of the factors that can enhance the advantages of being a first mover?
What is more important than time of entry when assessing the potential of FMA to capture returns to an innovation?
What is more important than time of entry when assessing the potential of FMA to capture returns to an innovation?
Why did Dell delay entry into the printer market?
Why did Dell delay entry into the printer market?
What is an example of a large firm acquiring a first mover?
What is an example of a large firm acquiring a first mover?
What did Dell eventually offer on its website?
What did Dell eventually offer on its website?
What is a benefit of delaying entry into a market?
What is a benefit of delaying entry into a market?
What is the main difference between proactive and reactive innovation strategies?
What is the main difference between proactive and reactive innovation strategies?
Which company is an example of a firm that has pursued proactive innovation strategies?
Which company is an example of a firm that has pursued proactive innovation strategies?
What is the goal of firms that pursue active innovation strategies?
What is the goal of firms that pursue active innovation strategies?
What is the characteristic of firms that pursue passive innovation strategies?
What is the characteristic of firms that pursue passive innovation strategies?
What is the significance of FMA in the context of innovation strategies?
What is the significance of FMA in the context of innovation strategies?
What is the main difference between innovation strategy and mainstream business strategy?
What is the main difference between innovation strategy and mainstream business strategy?
What is the role of research orientation in proactive innovation strategies?
What is the role of research orientation in proactive innovation strategies?
What is the significance of hedging bets in active innovation strategies?
What is the significance of hedging bets in active innovation strategies?
What is the characteristic of 'follower' and 'imitative' firms in the context of innovation strategies?
What is the characteristic of 'follower' and 'imitative' firms in the context of innovation strategies?
Study Notes
Strategic Innovation
- Strategic innovation involves understanding external threats and opportunities, collecting and deploying resources, and developing a comprehensive approach to manage business issues.
- It prioritizes and develops technological innovations, ensuring the best use of resources, capabilities, and processes to deliver value.
Innovation Strategy
- Innovation strategy differs from mainstream business strategy as it needs to accommodate uncertainty.
- It involves analyzing the firm's competitive and technological environment, assessing external challenges and opportunities, and identifying distinctive advantages.
- It requires a mix of approaches, including understanding market trends, articulating innovation ambitions, and developing resources and capabilities.
Types of Innovation Strategies
- Proactive strategies involve technological and market leadership, strong research orientation, and big bets, often pursued by firms enjoying returns from First-Mover Advantages (FMA).
- Active strategies involve defending existing technologies and markets, responding quickly to proven markets and technologies, and hedging bets.
- Reactive strategies involve responding slowly to innovation, playing the cost-cutting game, and are often pursued by "follower" and "imitative" firms.
- Passive strategies involve only engaging in innovation when demanded by customers and is risk-free.
First-Mover Advantages (FMA)
- FMA can provide a head start over competitors, enabling firms to capture market share.
- However, advantages dissipate over time, and access to complementary assets is key to capturing returns to innovation.
- Timing of entry depends on existing resources and capabilities, and firms may delay entry to learn from others' failures.
Examples of Firms
- DuPont has pursued a proactive strategy, with over 200 years of technology leadership in various areas.
- Apple has also pursued a proactive strategy, with innovative products such as the Macintosh and iPod.
- Dell delayed entry into the printer market, then successfully entered by utilizing its website and capturing a major market share.
- News International acquired MySpace, a first mover in social networking, to gain FMA.
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Description
This quiz covers the early days of social networking, specifically MySpace, and its relation to innovation strategy. It also touches on various typologies of technology and innovation strategy.
