Mtv 08 Canonical S07

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]

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.

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.

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?

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

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.

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).

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.

Meta-Analysis
What is creative?
What traits do creative people share in common?
91 videotaped interviews.
Culture changers from different areas.
Prior research on creativity.

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).

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.

Meta-Analysis
Who creates new product value?
How do they do it & what kind of people are they?
Audiotaped interviews of technology value creators.
Draws on earlier models of creativity and NPD.

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.

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)

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.

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

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.

5 Forces Diagram http://www.berg-marketing.dk/GIF/five_forces.gif

Generic Strategies
3 generic strategies:
Overall cost leadership
Differentiation
Focus
Can be plotted as function of
Strategic target
Strategic advantage

Generic Strategy Quadrants http://tatler.typepad.com/images/strategy.jpg

Stuck in the Middle

Meta-Analysis
What industries attractive in long term & why?
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.

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.

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.

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.

Support Activities
4 “support” activities:
Firm infrastructure
Human resource management
Technology development
Procurement

Value Chain Diagram

Meta-Analysis
What gives a firm a sustainable competitive advantage?
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.

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.

http://www.entrepreneurialengineer.blogspot.com	13
http://entrepreneurialengineer.blogspot.com	12

Mtv 08 Canonical S07

by David E. Goldberg on Feb 17, 2008

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Mtv 08 Canonical S07 — Presentation Transcript