Schilling Information System

1. CHAPTER 3
AFIFAH CAHAYANI ADHA
SISTEM INFORMASI
IS STRATEGY

2. Types and Patterns
of Innovation

3.  Different dimensions have been used to distinguish types of
innovation. Some of the most widely used dimensions include product
versus process innovation, radical versus incremental innovation,
competence-enhancing versus competence-destroying innovation,
and architectural versus component innovation.
 A graph of technology performance over cumulative effort invested
often exhibits an s-shape curve. This suggests that performance
improvement in a new technology is initially difficult and costly, but, as
the fundamental principles of the technology are worked out, it then
begins to accelerate as the technology becomes better understood,
and finally diminishing returns set in as the technology approaches its
inherent limits.

4.  A graph of a technology’s market adoption over time also typically
exhibits an s-shape curve. Initially the technology may seem uncertain
and there may be great costs or risks for potential adopters. Gradually,
the technology becomes more certain (and its costs may be driven
down), enabling The technology to be adopted By larger market
segments. Eventually the technology’s diffusion slows as it reaches
market saturation or is displaced by a newer technology.
 The rate at which a technology improves over time is often faster than
the rate at which customer requirements increase over time. This
means technologies that initially met the demands of the mass market
may eventually exceed the needs of the market. Furthermore,
technologies that initially served only low-end customers (segment
zero) may eventually meet the needs of the mass market and capture
the market share that originally went to the higher-performing
technology.

5.  Technological change often follows a cyclical pattern. First, a
technological discontinuity causes a period of turbulence and
uncertainty, and producers and consumers explore the different
possibilities enabled by the new technology. As producers and
customers begin to converge on a consensus of the desired
technological configuration, a dominant design emerges. The dominant
design provides a stable benchmark for the industry, enabling producers
to turn their attention to increasing production efficiency and incremental
product improvements. This cycle begins again with the next
technological discontinuity.
 The first design based on the initial technological discontinuity rarely
becomes the dominant design. There is usually a period in which
firms produce a variety of competing designs of the technology
before one design emerges as dominant.

6.  The dominant design rarely embodies the most advanced
technological features available at the time of its emergence. It is
instead the bundle of features that best meets the requirements of
the majority of producers and customers.