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Lecture 8 from Creative Modeling for Tech Vision

Lecture 8 from Creative Modeling for Tech Vision

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  • 1. Creative Modeling for Technology Visionaries Qualitative & Simplified Quantitative Modeling for Product Creation Module 8: Canonical Modeling David E. Goldberg University of Illinois at Urbana-Champaign Urbana, Illinois 61801 [email_address]
  • 2. Qualitative Models in Words & Pictures
    • 2 techniques with words:
      • Socratic dialectic.
      • Aristotelian data mining.
    • A variety of techniques with pictures:
      • Sketching.
      • Diagramming.
    • Surprise! Have been using such models all term.
    • Review them & consider 2 canonical models of business.
  • 3. This Module
    • Consider canonical models in business and elsewhere.
    • Analyze earlier models in course:
    • Consider two canonical models in business:
      • Porter’s five forces.
      • Porter’s value chain.
    • Subject all analyses to meta-analysis.
  • 4. Review of MTV Models
    • Pink model of the conceptual age.
    • Csikszenmihalyi’s model of creativity.
    • Price, Griffin & Vojak model of TVs.
    • Meta-analysis:
      • What Socratic questions asked and answered?
      • What data mined?
      • What elements of qualitative model used and how integrated?
  • 5. Pink Model: A Whole New Mind
    • Elements:
      • 4 ages
      • 3 A’s
      • 6 senses
    • 4 Ages:
      • Agricultural age
      • Industrial age
      • Information age
      • Conceptual age
    • 3 A’s:
      • Abundance
      • Automation
      • Asia
    • 6 Senses:
      • Design
      • Story
      • Symphony
      • Empathy
      • Play
      • Meaning
  • 6. Meta-Analysis
    • Socratic questions asked?
      • Is our age different from times past?
      • If so, what will ensure successful life of work in this new age?
    • Data or other model influences:
      • Florida’s Rise of the Creative Class.
      • Data on rise in globalization.
      • Rise in entrepreneurship.
      • Broad array of scholarship in different areas.
  • 7. Model Integration & Elements
    • 4 ages model is historical argument (Hegelian in nature).
    • 3 A’s model captures key characteristics of environment relevant to current age.
    • 6 skills model captures skills necessary to be category creator.
    • No visual elements (other than lists).
  • 8. Csikszentmihalyi’s Model
    • Elements:
      • Systems model
      • Definition
      • Elements of creative person
      • Dimensions of creativity complexity
    • Systems model:
      • Domain: symbolic rules and procedures.
      • Field: individuals who are gatekeepers to the domain.
      • Person: the creative one.
    • Definition: Creativity is any act, idea, or product that changes an existing domain, or that transforms an existing domain into a new one.
    • Creative person:
      • Genetic predisposition doesn’t hurt.
      • Curiosity, wonder, and interest.
      • Access to a domain.
      • Access to a field.
      • Creative complexity.
    • Creative complexity:
      • Smart v. naïve
      • Disciplined v. playful.
      • Physical v. quiet
      • Fantasy v. reality.
      • Extrovert v. introvert.
      • Humble and proud
      • Masculine and feminine.
      • Conservative and rebellious
      • Objective and passionate.
      • Suffering and enjoyment.
  • 9. Meta-Analysis
    • Socratic questions asked?
      • What is creative?
      • What traits do creative people share in common?
    • Data or other model influences:
      • 91 videotaped interviews.
      • Culture changers from different areas.
      • Prior research on creativity.
  • 10. Model Integration & Elements
    • Systems model explicates relationship of what creative person must do.
    • Other models hierarchically identify aspects of creative person mined from interviews.
    • Interlocking hierarchical dimensionalization of creative system.
    • No visual elements (systems model easily drawn as block diagram).
  • 11. Tech Visionary Model
    • Elements:
      • Process
      • Domains of innovation
      • MP 5
    • Process
    • Domains:
      • Customer needs
      • Organizational hurdles
      • Technological feasibility
      • Market acceptance
    • MP 5 model
    Griffin, A. et al. (in press). Voices from the field: How exceptional electronic industrial innovators innovate. Journal of Product Innovation Management.
  • 12. Meta-Analysis
    • Socratic questions asked?
      • Who creates new product value?
      • How do they do it & what kind of people are they?
    • Data or other model influences:
      • Audiotaped interviews of technology value creators.
      • Draws on earlier models of creativity and NPD.
  • 13. Model Integration & Elements
    • Process model follows flow of activities.
    • MP5 model follows elements of what TVs do and who they are.
    • Model is verbal and visual.
    • Process style visual model hybrid with layers.
    • Orbit & process visual model combined.
  • 14. Michael Porter on Strategy
    • Harvard Business School professor.
    • http://www.isc.hbs.edu/
    • 2 important books on generic strategic concerns.
    • Industries: Competitive Strategy (1980).
    • Firms: Competitive Advantage (1985).
    Michael Porter (b. 1947)
  • 15. Canonical Modeling of Business
    • View business strategy as canonical modeling.
    • Outlines things that businesses have in common at highest levels.
    • Largely ignores the details of specific industry, product, or market.
    • Creative modeling requires attention to these details.
    • Lessons of canonical modeling useful, however.
  • 16. Strategy: Industry Level
    • General analytical techniques.
      • The structural analysis of industries.
      • Generic competitive strategies.
      • A framework for competitor analysis.
      • Market signals
      • Competitive moves
      • Strategy toward buyers and suppliers.
      • Structural analysis within industries.
      • Industry evolution.
    • Generic industry environments
      • Competitive strategy in fragmenting industries.
      • Competitive strategy in emerging industries.
      • The transition to industry maturity.
      • Competitive strategy in declining industries.
      • Competition in global industries.
      • Trends affecting global competition.
    • Strategy decisions
      • The strategic analysis of vertical integration.
      • Capacity expansion.
      • Entry into new businesses
  • 17. Structural Analysis of Industries
    • Strategic attractiveness of an industry affected by five forces:
      • Rivalry among existing firms.
      • Threat of new entrants.
      • Bargain power of suppliers.
      • Bargaining power of customers.
      • Threat of substitute products or services.
    • High values of any of these can make industry unattractive strategically.
  • 18. 5 Forces Diagram http://www.berg-marketing.dk/GIF/five_forces.gif
  • 19. Generic Strategies
    • 3 generic strategies:
      • Overall cost leadership
      • Differentiation
      • Focus
    • Can be plotted as function of
      • Strategic target
      • Strategic advantage
  • 20. Generic Strategy Quadrants http://tatler.typepad.com/images/strategy.jpg
  • 21. Stuck in the Middle
  • 22. Meta-Analysis
    • Socratic questions asked?
      • What industries attractive in long term & why?
    • Data or other model influences:
      • Comparisons of industry data.
      • Prior work in industrial strategy.
    • Model integration & elements:
      • Qualitative categories work hierarchically.
      • Use of system/process diagrams to illustrate relationships.
      • Use of quadrant charts to show key variations.
      • Qualitative sketch of functional relationship to help understand consequences of poor strategy.
  • 23. Strategy: Firm Level
    • Competitive strategy: The core concepts.
    • The value chain and competitive advantage.
    • Cost advantage.
    • Differentiation
    • Technology and competitive advantage.
    • Competitor selection.
    • Industry segmentation and competitive advantage.
    • Substitution.
    • Interrelationships among business units.
    • Horizontal strategy.
    • Achieving interrelationships.
    • Complementary products and competitive advantage.
    • Industry scenarios and competitive strategy under uncertainty.
    • Defensive strategy.
    • Attacking an industry leader.
  • 24. Value Chain Analysis
    • Take process/systems view of the firm.
    • Imagine generic elements as opportunities for differentiation or other strategic advantage.
    • Imagine linkages between activities as opportunity for competitive advantage.
    • Consider primary and support activities.
    • Recall this is 1985: Aftermath of Japanese quality revolution.
  • 25. Primary Activities
    • 5 primary activities:
      • Inbound logistics.
      • Operations (manufacturing).
      • Outbound logistics.
      • Marketing and sales.
      • After sales service.
    • Where’s product development?
    • Assumption in the 80s was category enhancement mentality.
  • 26. Support Activities
    • 4 “support” activities:
      • Firm infrastructure
      • Human resource management
      • Technology development
      • Procurement
  • 27. Value Chain Diagram
  • 28. Meta-Analysis
    • Socratic questions asked?
      • What gives a firm a sustainable competitive advantage?
    • Data or other model influences:
      • Prior work in industrial org. & strategy.
      • Line & staff orientation.
      • Extant categories bias.
    • Model integration & elements:
      • Qualitative categories work hierarchically.
      • Use of system/process diagrams to illustrate relationships.
      • Diagram showing process flow and bus-characteristics of “staff” functions.
  • 29. Bottom Line
    • Review of other course models:
      • Pink’s, A Whole New Mind.
      • Csikszentmihalyi’s, Creativity.
      • Price, Vojak & Griffin, Tech Visionaries.
    • Porter’s canonical industry & firm models:
      • Five forces of industry structure.
      • Value chain of competitive advantage.
    • Lessons & meta-lessons important.
    • Need to build creative models that help in product development, launch, and sustenance.