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by: Miss Kristopher Farrell


Miss Kristopher Farrell
University of Central Florida
GPA 3.85

Rajagopal Echambadi

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Rajagopal Echambadi
Class Notes
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This 25 page Class Notes was uploaded by Miss Kristopher Farrell on Thursday October 22, 2015. The Class Notes belongs to MAN 6286 at University of Central Florida taught by Rajagopal Echambadi in Fall. Since its upload, it has received 35 views. For similar materials see /class/227674/man-6286-university-of-central-florida in Business, management at University of Central Florida.

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Date Created: 10/22/15
Slide 1 Slide 2 Slide 3 Workshop on Crossing the Chasm Raj Echambadi Product Life Cycles from Marketing lnlnmutllnn Grnwlh Mammy Decllne lnduslly Salts iEass dimsian madei Slide 4 CROSSING THE CHASM Sllde 5 Traditional Adoption Model Slide 6 Slide 7 Slide 8 Slide 9 Technology Adoption Life Cycle Prawn sts Conservatives Stick with the herd Hold on Skeptics No way Innovators Early Early Late Hams Adapters Mammy Mammy Pragmatists cast the deciding vote Market Development Model Put the technology on the map Form the rst persistent value chain Remerrber the wayto a massmarket 39 n39 he Market Development Model Is always through a rmrka Slide 10 Slide 11 Slide 12 l The Bowling Alley iMarket Development Model Tornado Chasm Scale for volume Fight for rmrka share l Mirk it Dwelopment Model Main Street A Early Market 64 Chasm Dorrinant Design Serve an established rmrket Shae 13 Shde 1A Commm widow Shae 15 szpea mmy Slide 16 Slide 17 Slide 18 Rules from Prospect Theory 0 Individuals are sensitive to gains and losses relative to a reference point not absolute o Losses loom larger than gains Endowment Effect 0 People value items in their possession more than they value items not in their possession Duh 0 Most innovations demand change Giving up things we have and receian things we don39t have 0 Benefits being given up loom larger than benefits being received Scenario 1 0 Net benefits for both the incumbent and the innovation are the same 0 The innovation is far cheaper than the incumbent o What happens Slide 19 Slide 20 Slide 21 Scenario 2 o The innovation offers all ofthe be innovation and much more say G with no additional costs 0 What happens ne ts ofthe oogle Scenario 3 0 simultaneous consideration of both gains 0 More than th overweighting oflossesthe nature ofthe innovation exacerbates the trad off e Tlmlng immediate lo Certainty ofthe losse ss vs delayed gratification s Abilityto quantify losses Andy Grove Psychology of the Innovator The developer s cu 0 Who innovates The believers So developers evaluations ofthe features may no ma ch the ainstream consumers39 evaluations Curse of knowled e o What is he status quo for the developer W New IOId lt v new lt v Newl N Customer Irm of Intel says that an innovation has to be 10 time ueuet Slide 22 What should afirm do o Brace forlhe Long Haul 0 Develop a 10X advantage 0 Eliminalelhe old ifpossible Cannibalize yourself Slide 1 Slide 2 Slide 3 Strategic In novation Ma nagement Agenda for the Day Introduction Overvxew ofthe course 7 macrorlevel overview of strategy mnmnon management strategic innovation Syllabus and course expectations Introduction Me 3 Slide 4 Slide 5 Slide 6 Raj Echambadi PhD in Marketing Area ofspeCialization Strategy espeCially technology entrepreneurship and innovations Marketing research especially quantitative econometric techniques Representative Research 0 Who enters new industries and then lives to tell about it 22 industries 2500 firms 100 years 0 What are the factors affectin survin of tlegtlgmology rms over time 800 rms across ars Structural transformation nr industries conceptualization nr innimcive Environment o Is knowledge a doubleredged sword What hagpens m a rirni39s prospects when employees of en ingredlgye comfanie leave Disk drive industry 77 e 997 PLCi mikgmgl Mam Dem W W m m mamaquot Shde7 shdes Shdes The VDDu arVress Exemp es n he Se es Takeoff n mam m Cycle m Slide 10 Slide 11 Slide 12 Firm TakeoffAways Precedes Sales Amnmnhile u m Veas since Eommacial xamn Descriptive Statistics mean and 95 con dence interwl Silas Fllm mm Puk 2mm 1mm ILJyars gyms 11 yals Resolution of Technology and Demand ncertainw Technological Demand Uncenamlv lincevlamw Resuwed nesnven Q Q Inuumnn ColumnIIan nnn Silas nu Tkeo Meow Slide 13 Slide 14 Slide 15 When should firms enter Invumnn The Concept of Strategic Innovation Innovation Invention is a new form composition of natmn eViceor process Innovation IS the commerciallxatlon of Inventions Schumpeier i942 Any strategic theory of innovation needs to integrate both technological and market maklng capabilities Slide 16 Slide 17 Slide 18 Quote from Fast Company 2001 Charles Darwin wrote a book on natural selection 39 fittest it turns out is all about duestion How willyourcompanyadapt Needtoadapt successfully or strategizefor longrrun survival What is Strategy Strategy is the creation ofa unique and valuable position A company can outperform rivals ONLV if it can serve a difference consistently quot1 don tthl39nk pr there s anything worse than being ordinary How is strategy different from operational effectiveness The Essence of Strategy Strategy means deliberatelychoosing a different set ofactivities OR choosingto perform activities differentlythan rivals doto deliver a unique mix ofvalue visr rvis the competition tabout sustainable advantage This requires tradeoffs Slide 19 Slide 20 Slide 21 Activity Map The Notion of Fit Sustainable advantage rests on three pillars i l Marneis Hay yum Wu Strategic Innovation Driven by a variety offarces globalization technology and even demography 7 innovation has become an imperativel what is a strategic innovation Strategic innovation is not product ortechnological innovation alone New technologies do not always yield successful products New products are n always strategicallysigni canl Slide 22 Slide 23 Slide 24 My definition of Strategic Innovation Markides de nes strategic innovation as a fundamentally different way of competing in an industry by breakingthe rules ofthe game and thinking of new ways to compete Strategic innovation is about using innova i ve strategies by inventing new business models br akingthroughtraditio new rket sp ces Essentially it is rethinking basis ofcompetition for any company in any industry Outcomes of Strategic Innovation A significant departure in one ofthree mal areas Design ofthe endrt N Conceptualiz increased va identi cation of potential customers NEW rkets orend value chain architecture EW business models ation ofdelivered customervalue lue nu Red Blue 91mm Red o Slide 25 Slide 26 Slide 27 Successful Strategic Innovators How can one go about kickstarting strategic innovation Whatbusmessare WEln7 whuisuurcusmmer REdEfinEthE What REdEfinEthE Haw Start m2 thinkingpmcess at Mam paints What are mque capabiliti257 Slide 28 Redefine the Business Question the mental models the industry recipethat governs the industry behavior The good and the bad otmental models They help us process information taster and make decisions They can hinder activethinking and the adoption otnew 39deas Questioningmental models is not the same as abandoning the mental mo e s Slide 29 Redefine the Business contd Evaluate different types of competition Develop concrete strategic intent Future market focus Greater emphasis in market research on future customers and competitors Avoid theconventional planning mindset Embrace E theoryrfocused plannm Slide 30 Conventional Planning MindSet Assumption Reliable predictability Accountability is engralned The performance expectation iS sacred To explore future strategies you need to presume reliable unpredictability Theoryrbased planning Rememberthe future is unknown The key is learning outcomes How are the people respondrngto new information Slide 31 Slide 32 Slide 33 Marketing Myopia Adherence to the same mental models without conscious deliberation leads to inertia Fear MVOPlA Happens when managers become wantsrfocused and not needs focused To avoid myopia ask yourself what business are you in Example ofmilkshakes 63k From Ted Levitt39s 1959 Classic Paper quot7he railraaas are in trouble taaay hatbetaase that need was llea by others cars trucks airplanes and aa lea byt spa rt easah they ae hea their industry in currently was that they were railraaa ariehtea ihsteaa aftrahspartatiah ariehtea they were WW Competencies what a Firm does that is strategicallyvaluable VRl N Framework capabilities must To be a core competency be uonrsubstitutable Shde 3A WWWapzhmsmmomw Mame Shde 35 Shde 35 Wha szhe mgamer Shde 37 Shde 23 Shde 39 Rename the Wm Rede nezheHw NW N summmm mas sink M 9m lmnlememzlmn m mmmm um Slide 40 Slide 41 Slide 42 The Role of Theory for Businesses AtheoreticalviewisnotimpramcalThiSisa mind set Itis an art as much as a smence Observethehappeningsaroundyoucarefully Re enta1 database Categorize STYLE ENTERTAUTO m a a g a g m 3 Understand the W What causes what and why What does theory do Helps managers understand the present better Helps managers make better predictions History repeats itself A manage understands theory recognizes market patterns faster n m n elps managers understand contingencies It depends Theory Exercise Steps Christensen and Raynor article Observe Categorize Formation ofatheory Practical exercise Patterns in retailing article from the 39 39 Slide 43 Slide 44 Slide 45 What is a TOMark The Theory of the Market is critical for practicing managers Laptop example How do you measure awareness Do you understand the mechanism Do not mistake correlation for causation Exercise From Wikipedia Is this right Sleeping with one39s shoes on is strongly correlated with waking up with a headache Therefore sleeping with one39s shoes on causes headac e The more firemen fighting a fire the more damage there is going to be Therefore firemen cause damage A Study in Nature 1999 Young infants who sleep Wm the light on are much more llkelyto develop myopia in later llre Problem Slide 46 Slide 47 Slide 48 More examples peoplewrth more than 9 hours ofsleep a night are more llkely to develop cardlovascularpmblems Companies wrth more interr rm alliances are llkely to perform better Causality Causalitysubsumes mrrelatlon And moreA Helps us understand when thlngs don39t work as well Understanding Causal Mechanisms through Causal diagrams What lsthe relatlonshlphetween slze ofthe faculty at a lanerslty and enrollment revenues What ls the lmpaL t ofemployee tralnlng on performance Slide 49 Slide 50 A Conceptual Model or Service Delivery IDEO Case for Innovation as Enlightened Exgerimentation What is IDEO39S innovation System How does it work The system is perturbed by an unusual project request and how should they respdhd7 Examinethecasebybrealun down the four major elements Process Management Organization and Culture


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