V10 Innovation Ecosystems
Key Conzepts: - Business ecosystems - Risk (initiative, interdependence, integration Abilities: - Critical assessment of risk management approaches - Understanding of leadership in business ecosystems
Key Conzepts: - Business ecosystems - Risk (initiative, interdependence, integration Abilities: - Critical assessment of risk management approaches - Understanding of leadership in business ecosystems
Set of flashcards Details
| Flashcards | 16 |
|---|---|
| Language | Deutsch |
| Category | Micro-Economics |
| Level | University |
| Created / Updated | 06.01.2020 / 13.01.2020 |
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Accoring to this paper innovations ecosystems have become a core element in the growth strategies of firms in a wide range of industries. Innovations ecosystems also present a new set of risks - new dependencies. Name 3 important factors which has to be managed in a ecosystem.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
- Timing: Getting to market ahead of your rivals -> but be aware to manage the timing considering your complementors
- Resource allocation: What work can you manage to do in your company and which should be done by your partners
- Systematic risk assessment.
What's the definition of ecosystem?
(Jacobides, Cennamo, Gawer (2018) - Theory of Ecosystems)
An ecosystem is a set of actors with varying degrees of multilateral, nongeneric complementarities that are not fully hierarchically controlled (neither hierarchy-based nor a market based-value system)
- Generic complementarities are excluded because they do not give the parties any interest to align and act as a group.
- The multilateral complementarities exist at the level of the sets of rolesthat link the different parties together.
- The ecosystems cannot be hierarchically controlled by one company
Innovation ecosystems are characterized by 3 fundamental types of risk. Name and explain them.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
Initiative Risk:
"Uncertainties of managing a project"
Interdependence Risks:
"Uncertainties of coordinating with complementary innovators"
Integration Risk:
"Uncertainties presented by the adoption process across the value chain"
Strategy making and managing the risk in an innovation ecosystem is iterative and forces managers to rethink their strategies. Draw a scematic representation of this iterative process. Name some options which specific strategies might be rethought in this process.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
- lower performance targets
- allocating more resources to the project
- reassigning development responsibility among firm and partners
- changing target market
- lobbying the government for supportive regulatory changes
- acquiring copetiros or partner (open-innovation)
Which specific risks are part of the initiative risk assessment?
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
- feasibility of product
- benefit to customers
- relevant competition
- quality of the project team
When do ecosystems arise?
(Jacobides, Cennamo, Gawer (2018) - Theory of Ecosystems)
- Modularity
- allows labor devision along technical architecures
- Enable embedded coordiantion (limited coordination needed)
- Complementarities beween subsystems create the need for coordination
Name 6 types of complementarities.
(Jacobides, Cennamo, Gawer (2018) - Theory of Ecosystems)
- In production
- Generic: A Combination of A and B is more valuable than sum of separate parts
- Unique: Product A does not function without B
- Supermodular: More of Product A makes more of B more valuable
- In consumption
- Generic: A Combination of A and B is more valuable than sum of separate parts (boiling water with tea leafes)
- Unique: Product A does not function without B (game console with game)
- Supermodular: More of Product A makes more of B more valuable (any multi-sided platform (Spotify))
Which combination of complementarity results in an ecosystem and which not? Name for each combination some examples.
(Jacobides, Cennamo, Gawer (2018) - Theory of Ecosystems)
Which specific risks are part of the interdependence risk assessment? Illustrate with the example of e-Readers and with 3G implementation in the telecommunication industry.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
- development challenges
- regulatory delays
- incentive problems*
- financial difficulties
- leadership crises
e-Reder (Sony vs. Amazon Kindle):
- *Sony failed to manage thair ecosystem (publisher refused to put books online for almost free).
- Amazon payed 50% of the upfront payment to the publisher -> could not refuse.
This shows how by managing your ecosystems and making the publisher to your complementors a much higher value of your end-product can be created. That's the reason why Amazon Kindle made it on the market and sony not.
3G implementation in the telecomunication industry:
- mobile operators spend billions on the implementation of 3G wireless-technology for video streaming
- Managing a huge ecosystem was needed: new software for routing, digital rights, implementation on phones usw.
Which specific risks are part of the integration risk assessment? Illustrate with the example of PAX-System of Michelin.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
Time required for adopters at every point along the value gain to...
- become aware of the product
- agree to test it
- scale up its orders
Michelin PAX System failed to manage their intermediaries ("Vermittler"). Which are:
Car manufacturer: Need to design an produce new car design with needed electronic equipment (4 years!)
Tire Dealer: Need to inform and convice them about the new technology.
Service Garage: Train the employees and provide new equipment which is needed for the PAX-System.
Micheling failed to manage their intermediaries and the PAX-System never established on the private-car market. As a reaction they found a niche sector in the US Military Defence department. (changing the target market)!
Mapping the Ecosystem can reveal where delays in getting the innovation to market might interfere with your success. The Paper describes 7 Steps for Mapping the Ecosystem. Name them.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
Identify all the...
- intermediaries
- complements (other innovations needed for your innovation)
Estimate the dalays caused by...
- your interdependence with your own complementors
- adoption process (time for intermediary to integrate your solution)
- intermediarities
Stategically manage...
- arrive at a time-to-market for your innovation
- performance expectation (mentioned in card before)
This paper mentiones that "Costs includes all costs". What kind of costs do they mean? Name to with examples.
(Adner 2006 - Match your innovation strategy to your innovation ecosystem.)
Direct Cost: The price charged
Indirect Cost:
- switching costs
- complementary investments
- risk
- usw.
1. Sketch the 3D printing industry at 1995.
2. Name the crucial problem for focal firms to solve at these points in time
3. Name the main risk-type at this point in time.
(Use Case: 3D Printing Industry from 1995 - 2015)
Problems:
- Functionality and reliability of product
- Get companies to believe in technology
Initiative Risk!
1. Sketch the 3D printing industry at 2005.
2. Name the crucial problem for focal firms to solve at these points in time
3. Name the main risk-type at this point in time.
(Use Case: 3D Printing Industry from 1995 - 2015)
Get the product right:
- increase the performance through innovation in components
- making 3D printing usable and attractive in production prcess
- risk mitigation through changing relationships with suppliers
Integration Risk!
1. Sketch the 3D printing industry at 2015.
2. Name the crucial problem for focal firms to solve at these points in time
3. Name the main risk-type at this point in time.
(Use Case: 3D Printing Industry from 1995 - 2015)
- Problem of aligning ecosystem elements to support *d Printing (new additive product development as complement which created value for 3D printing.)
- Mitigated through forward integration
Interdependence risks!
Who is threatening the OEMs (3D printing industry) today?
- Diversifying: HP, Trumpf (machine tools)
- New entrants: Additive Industries with radically open systems
- Complementors: Autodesk (Auto CAD
- Customers: GE (General Electrics) acquires two OEMs for 1.4 Bn (Vertical integration)
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