Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Session08 entrepreneurship andtransformation


Published on

Published in: Education, Business
  • Be the first to comment

  • Be the first to like this

Session08 entrepreneurship andtransformation

  1. 1. Session 8.Entrepreneurship and Transformation<br />Prof. Dr. Bernhard Katzy<br />Winter 2011<br />
  2. 2. Innovation Management<br />Prof. Dr. Bernhard Katzy<br />1<br />Innovation System<br />Innovation<br />Innovation Governance <br />Organization of 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 />07/03/2011<br />
  3. 3. Session 8: An overview<br /><ul><li> Quick Test
  4. 4. Transforming Organizations
  5. 5. Capturing technical innovation and dynamic capabilities
  6. 6. Entrepreneurship in open innovation era</li></ul>Prof. Dr. Bernhard Katzy<br />2<br />07/03/2011<br />Presentation Outline<br />
  7. 7. Session 8: Reading engagement<br />2 questions 10 minutes<br />Prof. Dr. Bernhard Katzy<br />3<br />Quick test<br />07/03/2011<br />
  8. 8. Session 8: Examples of transforming organizations<br /><ul><li>Troubled Siemens Enterprise Communications(SEN) division
  9. 9. Globally, 17500 people work for SEN telecomunication division
  10. 10. ……</li></ul>Prof. Dr. Bernhard Katzy<br />4<br />MINI CASES<br />“ Our promise is to help people feel close to what is important to them”<br /> - What does this mean?<br /><ul><li>Nokia aims to be No. 1 on the mobile web</li></ul>Still a phone company??<br />07/03/2011<br />
  11. 11. Session 8: Examples of transforming organizations<br />How about these organizations?<br />Prof. Dr. Bernhard Katzy<br />5<br />Mini cases<br />07/03/2011<br />
  12. 12. Session 8: Capturing technical innovation and dynamic capabilities <br />Prof. Dr. Bernhard Katzy<br />6<br />Traditional product development funnel<br />Screen 1<br />Screen 2<br />Product<br />introduction<br />Development<br />Projects<br />Pre-development<br />Investigation<br />Source: New product development funnel, Wheelwright and Clark<br />07/03/2011<br />
  13. 13. Session 8: Capturing technical innovation and dynamic capabilities <br />Prof. Dr. Bernhard Katzy<br />7<br />Capturing technical innovation<br />Distribution<br />Competitive<br />Manufacturing<br />Core <br />Technological<br />Know-how <br />In Innovation<br />Service<br />Others<br />Complementary<br />Technology<br />Source: Capturing Value from Technological Innovation: Integration, <br />Strategic Partnering, and Licensing Decisions by David J.Teece 1988<br />07/03/2011<br />
  14. 14. Session 8: Capturing technical innovation and dynamic capabilities <br /><ul><li>The competitive potential embedded in new technology is not always captured by the innovator
  15. 15. Channel Selection Issues (Core Capabilities)
  16. 16. Contractual Mode
  17. 17. Integrative Mode
  18. 18. Mixed Mode</li></ul>Prof. Dr. Bernhard Katzy<br />8<br />Capturing technical innovation<br />07/03/2011<br />
  19. 19. Dynamic Capabilities<br /><ul><li> Are what enable a firm to integrate, build, and reconfigure internal and external competencies to address rapidly changing environments (Teece et al., 1997)
  20. 20. Are the firm’s processes that use resources to match and even create market change.
  21. 21. Are the organisational and strategic routines to learn routines (Einsenhardt et al. 2000)</li></ul>Prof. Dr. Bernhard Katzy<br />9<br />07/03/2011<br />Dynamic capability<br />Process<br /><ul><li>Coordination/Integration
  22. 22. Learning
  23. 23. Reconfiguration and transformation</li></ul>Path<br />Path dependency<br /><ul><li>Current position is shaped by the path it travelled
  24. 24. Routines constrain its future behavior</li></ul>Position<br /><ul><li>Technological assets
  25. 25. Financial assets
  26. 26. Structural assets
  27. 27. ……</li></li></ul><li>Dynamic capabilities in details<br />Prof. Dr. Bernhard Katzy<br />10<br />07/03/2011<br />Dynamic capabilities vary in different Context<br />Dynamic capabilities integrate resources<br /><ul><li>Product development routines for profitable product and services
  28. 28. Strategic decision making
  29. 29. …</li></ul>Dynamic capabilities on reconfiguration resources<br /><ul><li> replication and brokering routines used to copy, transfer, and recombine resources for new products
  30. 30. Scarce Resource allocation routines
  31. 31. Patching routines to changing market
  32. 32. …</li></ul>others<br /><ul><li> Knowledge creating routines in industries where cutting-edge knowledge is essential
  33. 33. Alliance and acquisition routines which bring external resources into the firm, like BIO-TECH firms, or CISCO
  34. 34. Exit routines as market undergo changes</li></li></ul><li>Session 8: Capturing technical innovation and dynamic capabilities <br />Prof. Dr. Bernhard Katzy<br />11<br />Entrepreneurial dynamics and dynamic capabilities<br />Source: Strehle, Katzy, Davila, Learning Capabilities and <br />the Growth of Technology-based new ventures<br />07/03/2011<br />
  35. 35. Growth is driven by learning, not “more of the same” <br />Prof. Dr. Bernhard Katzy<br />12<br />LEARNING, CAPABILITIES, AND THE OPERATING CORE<br />07/03/2011<br />
  36. 36. Prof. Dr. Bernhard Katzy<br />13<br />MCS are suited to observe organizational learning in new ventures<br />KNOWLEDGE CODIFICATION IN MANANGEMENT SYSTEMS<br />Budgeting example<br />Learning increase<br />Budgeting with IT Toole.g. “SAP”<br />Frequent budgeting, self- made on Excel<br />Loose bundle of bank slips<br />Archive of costs, revenues, bank slips, and notes<br />Process<br />No process<br />Evolution of routinesMCS1<br />1MCS are ”formal, information-based routines and procedures used by managers to maintain or alter patterns in organizational activities’’ (Simons, Strategic Management Journal, 1994)<br />07/03/2011<br />
  37. 37. The study setting<br />Prof. Dr. Bernhard Katzy<br />14<br /><ul><li>Questionnaire and interview with 1 to 3 top managers
  38. 38. Participating companies must be:
  39. 39. Technology-based
  40. 40. In a range of 10 to 150 employees
  41. 41. Founded 1992 or later
  42. 42. Private and independent or publicly-owned
  43. 43. Located in regions with high entrepreneurial activity, here Silicon Valley and Munich</li></ul>Munich<br />(44+2* STBNV)<br />Silicon Valley<br />(72 STBNV)<br />* 2 TBNV went bankrupt during the observation<br />07/03/2011<br />
  44. 44. Prof. Dr. Bernhard Katzy<br />15<br />PATH DEPENDENCY OF GROWTH<br />Revenue (EUR '000)<br />07/03/2011<br />
  45. 45. Session 8: Entrepreneurship in Open Innovation Era<br />Prof. Dr. Bernhard Katzy<br />16<br />Open innovation<br />Development<br />Research<br />licensing<br />Other firms’ Market<br />New Market<br />Spin-off<br />Internal Technology Base<br />Current Market<br />Labor mobility/ Venture Capital/ Numerous Start-ups/ research conducted at Universities/……<br />External Technology Base<br />Technology insourcing<br />Source: The era of open innovation by Henry Chesbrough 2003<br />07/03/2011<br />
  46. 46. Session 8: Entrepreneurship in Open Innovation Era<br /><ul><li>Till the end of 1999, The NVG of Lucent had invested in 19 ventures which are located in 4 areas in the left.
  47. 47. The objectives: uncover new vehicles for increasing its growth; develop new mechanisms for leveraging its unparalled technology; increasing comercialisation rate of its technology.
  48. 48. Focus on internal ideas</li></ul>Prof. Dr. Bernhard Katzy<br />17<br />The case of BELL LAB<br />Corporate investment objective<br />Strategic<br />Financial<br />Link to operational capability<br />Driving<br />Advances strategy<br /> of current business<br />Emergent<br />Exploration of poten<br />-tial new business<br />Tight<br />Enabling<br />Complements strate-<br />gy of current business<br />Passive<br />Provides financial<br /> returns only<br />Loose<br />Source: HenryW.Chesbrough 2002<br />07/03/2011<br />
  49. 49. Session 8: Entrepreneurship in Open Innovation Era<br />Prof. Dr. Bernhard Katzy<br />18<br />Lucent NVG'S OPERATING MODEL<br />Source: Henry W.Chesbrough and Stephen J.Socolof<br />07/03/2011<br />
  50. 50. Readings for Session 9<br /><ul><li>Covin, J. & Miles, M. (1999). Corporate Entrepreneurship and the Pursuit of Competitive Advantage. Entrepreneurship: Theory and Practice, Spring, pp. 47-63.
  51. 51. Guclu, A., Dees, J.G. & Anderson, B.B. (2002). The Process of Social Entrepreneurship: Creating Opportunities Worthy of Serious Pursuit.Fuqua School of Business, November, pp. 1-15.</li></ul>Prof. Dr. Bernhard Katzy<br />19<br />07/03/2011<br />