Session03 organization ofinnovation

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Session03 organization ofinnovation

  1. 1. Session 3: Organization of Innovation<br />Prof. Dr. Bernhard Katzy<br />Winter 2011<br />
  2. 2. Overview of Course Content<br />1<br />Innovation System<br />Innovation Governance <br />Organization of innovation<br />Innovation<br />Transformation and entrepreneurship <br />Basic innovation concepts<br />Introduction based on life cases<br />Innovation Theory<br />Dominant theory, Main issues and developments of innovation research<br />Innovation Practice<br />High tech entrepreneurship,<br />Service innovation……<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  3. 3. 2<br />Session 3: An Overview<br />AGENDA<br />Mini-Test<br />Challenges when organizations face innovation<br />Understanding organization<br />Organizing innovation<br />Readings for session 4 <br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  4. 4. Session 3: reading engagement<br />Mini-Test<br />3<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  5. 5. Challenges when organizations face innovation<br />4<br />Innovation's uncertainty<br />Survival depends on maintaining a stream of innovations but <br />INNOVATION<br />Technology uncertainty<br />Market uncertainty<br />Organization uncertainty<br />R&D capabilities to develop new technology<br />Competition uncertainty<br />Formal structure<br />Demand uncertainty<br />Culture<br />Whether developed the right technology<br /><ul><li>Every two years almost our entire product line turns over. We can almost go out of business in two years if we don't do it right</li></ul> ----Gordon Moore<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  6. 6. Challenges when organizations face innovation<br />5<br />Finance<br />Model of functional organization<br />HumanResources<br />Operativecore<br />Marketing<br />Purchasing<br />R & D<br />Source: [Thompson]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  7. 7. Challenges when organizations face innovation<br />6<br />An information perspective of organization designing<br />Reduce the need for information processing<br />Increase the information processing capability<br />Investment in vertical<br /> information system<br />Creation of <br />slack resources<br />Stable organization<br />Rules andprograms<br />Increasing planning targets<br />Create information channels, standardize information…….<br />Hierarchy<br />Targets and goals<br />Creation of <br />Self-contained tasks<br />Creation of <br />Lateral relations<br />Uncertainty<br />Difference between information required and possessed<br />Groups created based on markets, projects…….<br />Direct contact, task force<br />Teams …….<br />[Jay R. Galbraith 1974]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  8. 8. Understanding organization<br />7<br />Traditional organization structure<br />Comparison between organic structure and mechanistic one<br />[Burns and Stalker 1961] <br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />
  9. 9. Understanding organization-Architecture<br />8<br />Organization architecture<br />Informal <br />Organization<br />Task<br />Formal <br />Organization<br />Arrangements<br />Individual<br />[ David A. Nadler and Michael L. Tushman, 1997]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  10. 10. Understanding organization-Growth<br />9<br />Organization growth <br />Growth throughCollaboration<br />Size<br />Growth throughCoordination<br />Growth throughDelegation<br />???Crisis<br />Growth throughDirection<br />Crisis ofRed Tape<br />Crisis of<br />Control<br />Growth throughCreativity<br />Crisis ofAutonomy<br />[Greiner Crisis and growth model]<br />Crisis ofLeadership<br />Phase / Time<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  11. 11. The Case of Siemens AG<br />10<br />Fax<br />PBX<br />Internet/<br />Email<br />EDV<br />Video<br />[Siemens AG, 1999]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  12. 12. Understanding organization-Culture<br />11<br />Linking innovation and culture<br />summary from Charles A. O'Reilly and Michael L. Tushmans' idea<br />Unpredictability<br />INNOVATION<br />Nonstandard Solution<br />Risk Taking<br />CREATIVITY<br />IMPLEMENTATION<br />Support for risk taking & change<br />Effective group function<br />Tolerance of mistakes<br />Speed of action<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  13. 13. Organizing innovation - Ambidextrous organization<br />12<br />The case of ibm<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  14. 14. Organizing innovation - Virtual Organization<br />13<br />Virtual OrGANIZATION<br />Network<br />Project<br />- Co-operation<br />Management<br /> of dynamic<br /> Co-operations<br />- Order<br />Processing<br />platform<br />- stable<br />- Dynamic<br />[Schuh, Katzy, Eisen, 1997]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  15. 15. Organizing innovation - Virtual Organization<br />14<br />Roles in Virtual organization<br />Competence manager<br />- brings partners competencies together - communication with customers<br />Project manager<br />- order processing<br />- engineering<br />Broker<br />- acquisition<br />- merchandising of the <br /> network competencies <br />- balancing supply/ demand<br />I<br />/<br />O<br />I<br />/<br />O<br />Auditor <br />- financial control (neutral)<br />- assessment<br />I<br />/<br />O<br />Manager<br />in-/ outsourcing <br />- coordination<br />- communication with the <br /> project manager<br />Network-coach<br />- construction and maintenance of <br /> the infrastructure <br />- acquisition of partners<br />- rules for order processing<br />[Katzy, Schuh, Millarg, 1996]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  16. 16. Organizing innovation – Virtual organization <br />15<br />When is virtual virtuous <br />Vertical<br />Integration <br />Market:<br />uncertainty and high risk<br />high incentives<br />Fusion <br />JV<br />Cooperation<br />Supplier<br />Contracts<br />Hierarchy:<br />certainty and low risks <br />low incentives<br />Market<br />Transactions<br />Integration<br />[Chesbrough, Teece, 1996]<br />Prof. Dr. Bernhard Katzy<br />11/01/11<br />
  17. 17. Readings for session 4<br /><ul><li>Article 1: Michael E. Porter. Clusters and The New Economics of Competition. Harvard Business Review, November- December, 1998.
  18. 18. Article 2: Anna L. Saxenian. Comment on Kenney and von BURG, "Technology, Entrepreneurship and Path dependence: Industrial Clustering in Silicon Valley and Route 128". Industrial and corporate change, Volume8, Number1, 1999.</li></ul>16<br />11/01/11<br />Prof. Dr. Bernhard Katzy<br />

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