1. ManagingInnovation
MBA 6103
Unit 6
Disruptive Innovation
& Implementation

3. • A product/service in alignment with the organizations existing strategy and core
competencies
• Dedicated development team
• Functional structure
• Lightweight product manager structure
• Heavyweight product manager structure
• Project execution teams
• Concept generation
• Project selection
• Product development
• Product commercialization and review

4. • A product/service outside of the organization’s existing strategy and core
competencies.
• Internal ventures (i.e. intrapreneurship)
• External ventures, partnerships, and/or alliances
• New ventures, spin-out/off projects
• Similarities/parallels to entrepreneurial ventures

5. • Growth
• Effective use of resources
• Leverage supply chain/value chain relationships
• Prepare for divestiture
• Leverage the ambitions of personnel
• Leverage economies of scale in product development
• Smooth out cyclical products/markets
• Diversification
• Develop new competencies
• Example:GE

6. • Direct Integration
• Integrated BusinessTeams
• NewVenture Department
• NewVenture Division
• Special Business Unit
• Independent Business Unit
• Nurtured Divestment
• Complete Spin-off
• Example PepsiCo andYum! Brands

7. • Combats commoditization
• Core product is homogenous
• Price wars
• Abundance of competing products
• Dissolution of brand equity
• Strategies forValue Added:
• Segmentation
• Customization
• Bundling

8. • Segmenting
• Based upon common buying/usage factors
• Customization
• Product/Service tailoring at an individual level
• Enhances differentiation at an individual level
• Revives brand equity/loyalty
• Increases dependency
• Bundling
• Combining related (or nonrelated) products/services into a single offer
• Enhancing differentiation
• Add “perceived value”
• Examples:
• Amazon – prime membership
• Netflix – pricing options