Session 8.Entrepreneurship and Transformation Prof. Dr. Bernhard Katzy Winter 2011
Innovation Management Prof. Dr. Bernhard Katzy 1 Innovation System Innovation Innovation Governance Organization of innovation Transformation and entrepreneurship Basic innovation concepts Introduction based on life cases Innovation Theory Dominant theory, Main issues and developments of innovation research Innovation Practice High tech entrepreneurship… 07/03/2011
Prof. Dr. Bernhard Katzy 4 MINI CASES “ Our promise is to help people feel close to what is important to them” - What does this mean?
Nokia aims to be No. 1 on the mobile web
Still a phone company?? 07/03/2011
Session 8: Examples of transforming organizations How about these organizations? Prof. Dr. Bernhard Katzy 5 Mini cases 07/03/2011
Session 8: Capturing technical innovation and dynamic capabilities Prof. Dr. Bernhard Katzy 6 Traditional product development funnel Screen 1 Screen 2 Product introduction Development Projects Pre-development Investigation Source: New product development funnel, Wheelwright and Clark 07/03/2011
Session 8: Capturing technical innovation and dynamic capabilities Prof. Dr. Bernhard Katzy 7 Capturing technical innovation Distribution Competitive Manufacturing Core Technological Know-how In Innovation Service Others Complementary Technology Source: Capturing Value from Technological Innovation: Integration, Strategic Partnering, and Licensing Decisions by David J.Teece 1988 07/03/2011
Session 8: Capturing technical innovation and dynamic capabilities
The competitive potential embedded in new technology is not always captured by the innovator
Session 8: Capturing technical innovation and dynamic capabilities Prof. Dr. Bernhard Katzy 11 Entrepreneurial dynamics and dynamic capabilities Source: Strehle, Katzy, Davila, Learning Capabilities and the Growth of Technology-based new ventures 07/03/2011
Growth is driven by learning, not “more of the same” Prof. Dr. Bernhard Katzy 12 LEARNING, CAPABILITIES, AND THE OPERATING CORE 07/03/2011
Prof. Dr. Bernhard Katzy 13 MCS are suited to observe organizational learning in new ventures KNOWLEDGE CODIFICATION IN MANANGEMENT SYSTEMS Budgeting example Learning increase Budgeting with IT Toole.g. “SAP” Frequent budgeting, self- made on Excel Loose bundle of bank slips Archive of costs, revenues, bank slips, and notes Process No process Evolution of routinesMCS1 1MCS are ”formal, information-based routines and procedures used by managers to maintain or alter patterns in organizational activities’’ (Simons, Strategic Management Journal, 1994) 07/03/2011
Located in regions with high entrepreneurial activity, here Silicon Valley and Munich
Munich (44+2* STBNV) Silicon Valley (72 STBNV) * 2 TBNV went bankrupt during the observation 07/03/2011
Prof. Dr. Bernhard Katzy 15 PATH DEPENDENCY OF GROWTH Revenue (EUR '000) 07/03/2011
Session 8: Entrepreneurship in Open Innovation Era Prof. Dr. Bernhard Katzy 16 Open innovation Development Research licensing Other firms’ Market New Market Spin-off Internal Technology Base Current Market Labor mobility/ Venture Capital/ Numerous Start-ups/ research conducted at Universities/…… External Technology Base Technology insourcing Source: The era of open innovation by Henry Chesbrough 2003 07/03/2011
Session 8: Entrepreneurship in Open Innovation Era
Till the end of 1999, The NVG of Lucent had invested in 19 ventures which are located in 4 areas in the left.
The objectives: uncover new vehicles for increasing its growth; develop new mechanisms for leveraging its unparalled technology; increasing comercialisation rate of its technology.
Prof. Dr. Bernhard Katzy 17 The case of BELL LAB Corporate investment objective Strategic Financial Link to operational capability Driving Advances strategy of current business Emergent Exploration of poten -tial new business Tight Enabling Complements strate- gy of current business Passive Provides financial returns only Loose Source: HenryW.Chesbrough 2002 07/03/2011
Session 8: Entrepreneurship in Open Innovation Era Prof. Dr. Bernhard Katzy 18 Lucent NVG'S OPERATING MODEL Source: Henry W.Chesbrough and Stephen J.Socolof 07/03/2011