Takahiro Fujimoto, a professor and theexecutive director of the ManufacturingManagement Research Center at theUniversity of Tokyo, also stressed theimportance of retaining manufacturingcapabilities at home, especially asJapan, unlike economies such as theU.S., has no strong agriculture orservice sector that it can sell inoverseas markets but has to rely onmanufacturing.Prof. Takahiro Fujimoto is a Professor of Graduate School of Economics,Department pf Business and Market Studies, the University of Tokyo.
Strategic Management @ 2013 MonotsukuriTHE FUTURE OF THE JAPANESEINDUSTRIES: AN APPROACH INTERM OF DESIGN-BASEDCOMPARATIVE ADVANTAGETakahiro FUJIMOTOProfessor, Faculty of Economics,MMRC, University of Tokyo
Strategic Management @ 2013 Dynamic capabilities“the ability to integrate, build, and reconfigureinternal and external competencies to addressrapidly changing environments”.Teeces concept of dynamic capabilities is atheory about the source of corporate agility:"the capacity (1) to sense and shapeopportunities and threats, (2) to seizeopportunities, and (3) to maintaincompetitiveness through enhancing,combining, protecting, and, when necessary,reconfiguring the business enterprisesintangible and tangible assets.”Prof. David Teece, the Thomas W. Tusher Professor in Global Business andfaculty director of the Institute for Business Innovation
Strategic Management @ 2013 SIDNEY G. WINTERDeloitte and Touche ProfessorEmeritus of ManagementGiovanni Dosi is Professor at theSantAnna School of AdvancedStudies in PisaRichard R. Nelson is an Americanprofessor of economics atColumbia University.
Strategic Management @ 2013 What are Microfoundations? David J. TeeceMicrofoundations are “elements” of Dynamic Capabilities. They consist ofdiscrete process/methodologies/structures that undergird clusters of dynamiccapabilitiesI. Routines/Methodologies• Organizational Routines– Ex: product development along a known trajectory• Analytical Methodologies– Ex: investment choicesII. Individual Acts and Action• Creative managerial and entrepreneurial acts– Ex: pioneering a new market
Strategic Management @ 2013 Three Clusters of Microfoundations*• Sensing– Identification and assessment of an opportunity– Easiest to embed in the organization• Seizing– Mobilization of resources to address an opportunity and to capture value• Transforming– Continued renewal– Inherently difficult to routinize• Each cluster is supported by organizational process; but also by theentrepreneurial and leadership capabilities of the top management team27*“Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance”, StrategicManagement Journal, 28:13 (December 2007), 1319-1350.
What might faster and more effective look like in practice?That is to say that an individual does not necessarily need to be sensing and responding everyhour, instead they need to do it faster and more effectively than competitors
Strategic Management @ 2013 “A corporation is a living organism;it has to continue to shed its skin.Methods have to change. Focus hasto change. Values have to change.The sum total of those changes istransformation.”Andrew Stephen Grove“For his important contributions to the computing industry and profession as an entrepreneurialleader, advisor, and mentor”
Strategic Management @ 2013 • Grove describes business transformation and resourcereconfiguration as ‘the valley of death’ because “youneed to tear things apart before you can put togetherthe new” (Puffer, 1999, p. 18).• That move was essentially Grove’s decision to committo the microprocessor as the company’s new direction.Transforming Intel from a ‘memory’ company (Intel’sprimary focus since its foundation in 1968) to a‘microcomputer’ company in 1985 has been describedas the most monumental act in Intel’s history(Burgelman, 1991)“Success breeds complacency, complacency breedsfailure...only the paranoid survive” (Grove, 1996)
Strategic Management @ 2013 Professor Robert BurgelmanExecutive Director of the Stanford Executive ProgramRobert Burgelman is Edmund W. Littlefield Professor of Management at theStanford School of BusinessInterview with Professor RobertBurgelman"Leaders are people who makeorganizations do things thatdont come naturally"The Role of the Strategy-Making Process for Corporate Longevity
Strategic Management @ 2013 Basis ofCompetitiveAdvantage inthe IndustryInternalSelectionEnvironmentDistinctiveCompetenceof the FirmOfficialCorporateStrategyStrategicActionIntel skills in circuit design andprocess technology, but notmanufacturingINERTIA NEW OPPORTUNITIESDRAM products become a commodity.Winning requires low cost and highquality which depends on manufacturing skills.• MarketINDUSTRY FORCES • Non-MarketI. Dynamic Forces in Firm Evolution: “The Rubber Band Model”
Strategic Management @ 2013 Basis ofCompetitiveAdvantage inthe IndustryInternalSelectionEnvironmentDistinctiveCompetenceof the FirmOfficialCorporateStrategyStrategicActionOfficialSTRATEGY isahead ofACTIONApple“Newton”:handheldproductstrategyACTION isahead ofSTRATEGYFabcapacityallocationdivergesfromstrategyI. Dynamic Forces in Firm Evolution: “The Rubber Band Model”
Strategic Management @ 2013 Three Types of Knowledge
Strategic Management @ 2013 Six Abilities that Constitute Phronesis
Strategic Management @ 2013 Philosophy system• ■Corporate PhilosophyLiving and prospering together withpeople, society, and the globe, we aim tobe a value-generating corporation thatcontributes to creation of a prosperoussociety.• ■Behavioral GuidelinesAs a good corporate citizen, we will:• implement open and fair corporateactivities• fulfill our social responsibilities, andconserve the global environment.• offer creativity, and provide added value• respect people, and create an activeworkplace worth working in.
Strategic Management @ 2013 Characteristics of Knowledge• 1. Increasing Return2. Unlimited Usage3. Production andConsumption Unseparated• 4. Difficulties in MarketTransaction5. New Value by Re-categorization6. Quickly Outdated7. Created by Human inRelationship
Strategic Management @ 2013 Basic Components of Knowledge-based Organization