1. Innovation Adoption TU-91.123 – Strategic Management of Technology and Innovation David Ing, IBM Business Consulting Services, Canada Helsinki University of Technology October 21, 2004

2. TU-91.123: Strategic Management of Technology and Innovation |2 Innovation adoption from two perspectives Adoption of innovations by customers Adoption of innovations within the organization

3. TU-91.123: Strategic Management of Technology and Innovation |3 Source: Clayton Christensen, The Past and Future of Competitive Advantage, MIT Sloan Management Review, Volume 42, Number 2, (Winter 2001), pp. 105-110.

4. TU-91.123: Strategic Management of Technology and Innovation |4 The adoption of disruptive innovation by customers is uncertain Disruptive innovations Simpler and cheaper ==> lower margins Interest first in emerging / insignificant markets Can't be used or not valued by current (profitable) customers Source: Clayton Christensen, The Innovator's Dilemma Innovation... not just in technology, but in business designs Source: Adrian Slywotsky, Value Migration

5. TU-91.123: Strategic Management of Technology and Innovation |5 Source: Clayton Christensen, The Past and Future of Competitive Advantage, MIT Sloan Management Review, Volume 42, Number 2, (Winter 2001), pp. 105-110.

6. TU-91.123: Strategic Management of Technology and Innovation |6 Enterprises can be oriented to make-and-sell, and/or sense-and-respond Dispatching: Sense Customer Value, then Respond Scheduling: Make, then Sell Source: Stephan H. Haeckel, Adaptive Enterprise: Creating and Leading Sense-and-Respond Organizations, Harvard Business School Press, 1999.

7. TU-91.123: Strategic Management of Technology and Innovation |7 Economic scope seeks products for customers; economic scale seeks customers for products Economies of scale ==> games against competitors Economies of scope ==> games with customers Source: www.chasmgroup.com Source: Shank, Pine, Victor, Boynton Source: Peppers & Roger (1993)

8. TU-91.123: Strategic Management of Technology and Innovation |8 A customer-back response assembles a unique structure for each individual request

9. TU-91.123: Strategic Management of Technology and Innovation |9 A value-producing business adapts as an open, extended enterprise system of multiple organizations