Assignment 2

Business Strategy: Innovation and Entrepreneurship

Competition Driven by Innovation

Dominant Positions Can Quickly Change Due to Innovation
Traditional Networks vs Cable Providers
Cable Providers vs. Streaming Services
Typewriters vs PCs
PCs Mobile Devices
Innovation can be a powerful strategic weapon to gain and sustain
competitive advantage.
Innovation and the Industry Life Cycle
The Five Phases of an Industry Life Cycle
1.Introduction
2.Growth
3.Shakeout
4.Maturity
5.Decline
I. Supply and demand changes as industries age
II. Each stage requires different competencies

Types of Innovation
• Markets and Technology Framework
• Incremental vs radical
• Architectural vs. Disruptive Innovation
• Closed vs. Open Innovation

To Overcome the Chasm, You Must

• Formulate a business strategy guided by:

 The who, what, why, and, how questions of competition (Chapter 6)

• Meet customer needs.

Needs are different for each industry life cycle stage.

• Bring competencies and capabilities to the table.

Needs are different for each industry life cycle stage.

How to Develop Innovation

Induce it through structures and systems.

Allow for autonomous behavior.

Champion it through supporting new projects.

Cooperative strategies

Licensing, strategic alliances, joint ventures, and acquisitions

From Pipeline to Platform Business Model

Implies three important shifts in strategy focus:

a) From resource control to resource orchestration

b) From internal optimization to external interactions

From customer value to ecosystem value