Class 10 Lecture Quiz PDF

Course Schedule Class Participation (20%) Quizzes (40%) Projects(40%)...

Course Schedule Class Participation (20%) Quizzes (40%) Projects(40%) Lecture Note-taking Class Date Class and Topic Quiz Section 1 Section 2 Assignment 1 8-Apr Course Introduction 2 15-Apr What is Digital Transformation o 3 22-Apr Group Project and Team building o 4 29-Apr Case Discussion o 5 6-May Group Discussion o 6 13-May Section 1 Presentation I o o 7 20-May Section 1 Presentation II o o 8 10-Jun Managing Transformative Innovation I: Timing of Entry o 9 17-Jun Managing Transformative Innovation II: Sources of Innovation o o 10 24-Jun Managing Transformative Innovation III: Types of Innovation o 11 1-Jul Guest Lecture: Digital Marketing o o 12 8-Jul Section 2 Presentation I o o 13 15-Jul Section 2 Presentation II o o 14 22-Jul Course Review 1-1 2-1 ©2020 McGraw-Hill Education  Types of Innovation 2-2 ©2020 McGraw-Hill Education  Types of Innovation 3 Competence-Enhancing versus Competence- Destroying Innovation. Competence-enhancing innovations build on the firm’s existing knowledge base. For example, Intel’s Pentium 4 built on the technology for Pentium III. Competence-destroying innovations renders a firm’s existing competencies obsolete. For example, 2-3 ©2020 McGraw-Hill Education  Types of Innovation 4 Architectural versus Component Innovation. A component innovation (or modular innovation) entails changes to one or more components of a product system without significantly affecting the overall design. For example, adding gel-filled material to a bicycle seat. An architectural innovation entails changing the overall design of the system or the way components interact. For example, transition from high-wheel bicycle to safety bicycle. 2-4 ©2020 McGraw-Hill Education  Technology S-Curves (relating to market) Both the rate of a technology’s improvement, and its rate of diffusion to the market typically follow an s-shaped curve. S-curves in Technological Improvement. Access the text alternative for these images 2-5 ©2020 McGraw-Hill Education  Technology S-Curves 3 S-Curves in Technology Diffusion. Adoption is initially slow because the technology is unfamiliar. It accelerates as technology becomes better understood. Eventually market is saturated and rate of new adoptions declines. 2-6 ©2020 McGraw-Hill Education  Technology S-Curves 2 Technologies do not always get to reach their max limits. Why? Q Firms may be reluctant to adopt new technology because performance improvement is initially slow and costly, and they may have significant investment in incumbent technology. May be displaced by new, discontinuous technology. A discontinuous technology fulfills a similar market need by means of an entirely new knowledge base. 2-7 ©2020 McGraw-Hill Education  Technology trajectory The path a technology follows through time is termed its technology trajectory. Many consistent patterns have been observed in technology trajectories, helping us understand how technologies improve and are diffused. 2-8 ©2020 McGraw-Hill Education  What do you learn from these patterns? 2-9 ©2020 McGraw-Hill Education rakuten stock price - Google Search rakuten stock price - Google Search  Netflix and movie theaters can coexist? 2-10 ©2020 McGraw-Hill Education  Too much for me… Technologies often improve faster than customer requirements demand. What would happen? Q This enables low-end technologies to eventually meet the needs of the mass market. Access the text alternative for these images 2-11 ©2020 McGraw-Hill Education  Too much for me… 2-12 ©2020 McGraw-Hill Education  Apple Newton MessagePad in 1993 “We had the right idea, but we didn'tBefore havesmartphones, there were personal digital assistants. Steve's unique talent to create a culture- changing product.“ said ex-Apple CEO TheJohn Newton MessagePad was Apple's most well known shot at Sculley. creating a PDA. It was able to do basic word processing, store contacts, and send texts. And like a tablet, it was compatible with a stylus. When it was released in 1993, the Newton MessagePad's portability was Source: Businessinsder.com marketed as revolutionary. 2-13 ©2020 McGraw-Hill Education  Glasstron in 1997 Sony had its own entry into the head- mounted display market. The company released the Glasstron in 1997. The Glasstron functioned similarly to the Oculus Rift — the unit wrapped around your head and had two eyepieces. Source: Businessinsder.com 2-14 ©2020 McGraw-Hill Education  Microsoft's SPOT Smart Watch in 2004 Microsoft is often known for being late to the party. But in 2004, it was much too early and too much — the company released a prototype of the modern smartwatch called the SPOT watch. The watch could display useful information like traffic alerts and weather; check stocks, sports, and calendars; read news; and check instant messages. Source: Businessinsder.com The SPOT watch was discontinued in 2008 2-15 ©2020 McGraw-Hill Education  Technology Cycles 1 Technological change tends to be cyclical: 2-16 ©2020 McGraw-Hill Education  2-17 ©2020 McGraw-Hill Education  Everyone wants to be the key dominant design setter. Many industries experience strong pressure to identify a single (or few) dominant design(s). There are multiple dimensions shaping which technology rises to the position of the dominant design. 2-18 ©2020 McGraw-Hill Education  Everyone wants to be the key dominant design setter. How can the firm establish itself as the trendsetter? For instance, what kind of expertise should it possess...? 2-19 ©2020 McGraw-Hill Education  Why Dominant Designs Are Selected 2 Prior Learning and Absorptive Capacity A firm’s prior experience influences its ability to recognize and utilize new information. Use of a particular technology builds knowledge base about that technology. The knowledge base helps firms use and improve the technology →Suggests that technologies adopted earlier than others are likely to become better developed, making it difficult for other technologies to catch up. 2-20 ©2020 McGraw-Hill Education  Why Dominant Designs Are Selected 3 Network Externalities Value of a good or service increase when more people use it. Network externalities are common in industries that are physically networked For example, Media, telecommunications 2-21 ©2020 McGraw-Hill Education  Why Dominant Designs Are Selected 3 Network externalities also arise when compatibility or complementary goods are important For example, many people choose to use Windows in order to maximize the number of people their files are compatible with, and the range of software applications they can use. 2-22 ©2020 McGraw-Hill Education  Netflix vs. Disney : Which streaming service is better? Image credit: Future) 2-23 ©2020 McGraw-Hill Education  Why Dominant Designs Are Selected 5 The Result: Winner-Take-All Markets Natural monopolies Firms supporting winning technologies earn huge rewards; others may be locked out. 2-24 ©2020 McGraw-Hill Education  Why Dominant Designs Are Selected 6 ▪ A dominant design can have far-reaching influence; it shapes future technological inquiry in the area. ▪ Winner-take-all markets can have very different competitive dynamics than other markets. ▪ Technologically superior products do not always win. ▪ Such markets require different firm strategies for success than markets with less pressure for a single dominant design. 2-25 ©2020 McGraw-Hill Education  Technology Cycles 3 ▪ During the era of incremental change, firms often cease to invest in learning about alternative designs and instead focus on developing competencies related to the dominant design. ▪ This explains in part why incumbent firms may have difficulty recognizing and reacting to a discontinuous technology. 2-26 ©2020 McGraw-Hill Education