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Mtv 08 Canonical S07


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Lecture 8 from Creative Modeling for Tech Vision

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Mtv 08 Canonical S07

  1. 1. 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]
  2. 2. Qualitative Models in Words & Pictures <ul><li>2 techniques with words: </li></ul><ul><ul><li>Socratic dialectic. </li></ul></ul><ul><ul><li>Aristotelian data mining. </li></ul></ul><ul><li>A variety of techniques with pictures: </li></ul><ul><ul><li>Sketching. </li></ul></ul><ul><ul><li>Diagramming. </li></ul></ul><ul><li>Surprise! Have been using such models all term. </li></ul><ul><li>Review them & consider 2 canonical models of business. </li></ul>
  3. 3. This Module <ul><li>Consider canonical models in business and elsewhere. </li></ul><ul><li>Analyze earlier models in course: </li></ul><ul><li>Consider two canonical models in business: </li></ul><ul><ul><li>Porter’s five forces. </li></ul></ul><ul><ul><li>Porter’s value chain. </li></ul></ul><ul><li>Subject all analyses to meta-analysis. </li></ul>
  4. 4. Review of MTV Models <ul><li>Pink model of the conceptual age. </li></ul><ul><li>Csikszenmihalyi’s model of creativity. </li></ul><ul><li>Price, Griffin & Vojak model of TVs. </li></ul><ul><li>Meta-analysis: </li></ul><ul><ul><li>What Socratic questions asked and answered? </li></ul></ul><ul><ul><li>What data mined? </li></ul></ul><ul><ul><li>What elements of qualitative model used and how integrated? </li></ul></ul>
  5. 5. Pink Model: A Whole New Mind <ul><li>Elements: </li></ul><ul><ul><li>4 ages </li></ul></ul><ul><ul><li>3 A’s </li></ul></ul><ul><ul><li>6 senses </li></ul></ul><ul><li>4 Ages: </li></ul><ul><ul><li>Agricultural age </li></ul></ul><ul><ul><li>Industrial age </li></ul></ul><ul><ul><li>Information age </li></ul></ul><ul><ul><li>Conceptual age </li></ul></ul><ul><li>3 A’s: </li></ul><ul><ul><li>Abundance </li></ul></ul><ul><ul><li>Automation </li></ul></ul><ul><ul><li>Asia </li></ul></ul><ul><li>6 Senses: </li></ul><ul><ul><li>Design </li></ul></ul><ul><ul><li>Story </li></ul></ul><ul><ul><li>Symphony </li></ul></ul><ul><ul><li>Empathy </li></ul></ul><ul><ul><li>Play </li></ul></ul><ul><ul><li>Meaning </li></ul></ul>
  6. 6. Meta-Analysis <ul><li>Socratic questions asked? </li></ul><ul><ul><li>Is our age different from times past? </li></ul></ul><ul><ul><li>If so, what will ensure successful life of work in this new age? </li></ul></ul><ul><li>Data or other model influences: </li></ul><ul><ul><li>Florida’s Rise of the Creative Class. </li></ul></ul><ul><ul><li>Data on rise in globalization. </li></ul></ul><ul><ul><li>Rise in entrepreneurship. </li></ul></ul><ul><ul><li>Broad array of scholarship in different areas. </li></ul></ul>
  7. 7. Model Integration & Elements <ul><li>4 ages model is historical argument (Hegelian in nature). </li></ul><ul><li>3 A’s model captures key characteristics of environment relevant to current age. </li></ul><ul><li>6 skills model captures skills necessary to be category creator. </li></ul><ul><li>No visual elements (other than lists). </li></ul>
  8. 8. Csikszentmihalyi’s Model <ul><li>Elements: </li></ul><ul><ul><li>Systems model </li></ul></ul><ul><ul><li>Definition </li></ul></ul><ul><ul><li>Elements of creative person </li></ul></ul><ul><ul><li>Dimensions of creativity complexity </li></ul></ul><ul><li>Systems model: </li></ul><ul><ul><li>Domain: symbolic rules and procedures. </li></ul></ul><ul><ul><li>Field: individuals who are gatekeepers to the domain. </li></ul></ul><ul><ul><li>Person: the creative one. </li></ul></ul><ul><li>Definition: Creativity is any act, idea, or product that changes an existing domain, or that transforms an existing domain into a new one. </li></ul><ul><li>Creative person: </li></ul><ul><ul><li>Genetic predisposition doesn’t hurt. </li></ul></ul><ul><ul><li>Curiosity, wonder, and interest. </li></ul></ul><ul><ul><li>Access to a domain. </li></ul></ul><ul><ul><li>Access to a field. </li></ul></ul><ul><ul><li>Creative complexity. </li></ul></ul><ul><li>Creative complexity: </li></ul><ul><ul><li>Smart v. naïve </li></ul></ul><ul><ul><li>Disciplined v. playful. </li></ul></ul><ul><ul><li>Physical v. quiet </li></ul></ul><ul><ul><li>Fantasy v. reality. </li></ul></ul><ul><ul><li>Extrovert v. introvert. </li></ul></ul><ul><ul><li>Humble and proud </li></ul></ul><ul><ul><li>Masculine and feminine. </li></ul></ul><ul><ul><li>Conservative and rebellious </li></ul></ul><ul><ul><li>Objective and passionate. </li></ul></ul><ul><ul><li>Suffering and enjoyment. </li></ul></ul>
  9. 9. Meta-Analysis <ul><li>Socratic questions asked? </li></ul><ul><ul><li>What is creative? </li></ul></ul><ul><ul><li>What traits do creative people share in common? </li></ul></ul><ul><li>Data or other model influences: </li></ul><ul><ul><li>91 videotaped interviews. </li></ul></ul><ul><ul><li>Culture changers from different areas. </li></ul></ul><ul><ul><li>Prior research on creativity. </li></ul></ul>
  10. 10. Model Integration & Elements <ul><li>Systems model explicates relationship of what creative person must do. </li></ul><ul><li>Other models hierarchically identify aspects of creative person mined from interviews. </li></ul><ul><li>Interlocking hierarchical dimensionalization of creative system. </li></ul><ul><li>No visual elements (systems model easily drawn as block diagram). </li></ul>
  11. 11. Tech Visionary Model <ul><li>Elements: </li></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Domains of innovation </li></ul></ul><ul><ul><li>MP 5 </li></ul></ul><ul><li>Process </li></ul><ul><li>Domains: </li></ul><ul><ul><li>Customer needs </li></ul></ul><ul><ul><li>Organizational hurdles </li></ul></ul><ul><ul><li>Technological feasibility </li></ul></ul><ul><ul><li>Market acceptance </li></ul></ul><ul><li>MP 5 model </li></ul>Griffin, A. et al. (in press). Voices from the field: How exceptional electronic industrial innovators innovate. Journal of Product Innovation Management.
  12. 12. Meta-Analysis <ul><li>Socratic questions asked? </li></ul><ul><ul><li>Who creates new product value? </li></ul></ul><ul><ul><li>How do they do it & what kind of people are they? </li></ul></ul><ul><li>Data or other model influences: </li></ul><ul><ul><li>Audiotaped interviews of technology value creators. </li></ul></ul><ul><ul><li>Draws on earlier models of creativity and NPD. </li></ul></ul>
  13. 13. Model Integration & Elements <ul><li>Process model follows flow of activities. </li></ul><ul><li>MP5 model follows elements of what TVs do and who they are. </li></ul><ul><li>Model is verbal and visual. </li></ul><ul><li>Process style visual model hybrid with layers. </li></ul><ul><li>Orbit & process visual model combined. </li></ul>
  14. 14. Michael Porter on Strategy <ul><li>Harvard Business School professor. </li></ul><ul><li> </li></ul><ul><li>2 important books on generic strategic concerns. </li></ul><ul><li>Industries: Competitive Strategy (1980). </li></ul><ul><li>Firms: Competitive Advantage (1985). </li></ul>Michael Porter (b. 1947)
  15. 15. Canonical Modeling of Business <ul><li>View business strategy as canonical modeling. </li></ul><ul><li>Outlines things that businesses have in common at highest levels. </li></ul><ul><li>Largely ignores the details of specific industry, product, or market. </li></ul><ul><li>Creative modeling requires attention to these details. </li></ul><ul><li>Lessons of canonical modeling useful, however. </li></ul>
  16. 16. Strategy: Industry Level <ul><li>General analytical techniques. </li></ul><ul><ul><li>The structural analysis of industries. </li></ul></ul><ul><ul><li>Generic competitive strategies. </li></ul></ul><ul><ul><li>A framework for competitor analysis. </li></ul></ul><ul><ul><li>Market signals </li></ul></ul><ul><ul><li>Competitive moves </li></ul></ul><ul><ul><li>Strategy toward buyers and suppliers. </li></ul></ul><ul><ul><li>Structural analysis within industries. </li></ul></ul><ul><ul><li>Industry evolution. </li></ul></ul><ul><li>Generic industry environments </li></ul><ul><ul><li>Competitive strategy in fragmenting industries. </li></ul></ul><ul><ul><li>Competitive strategy in emerging industries. </li></ul></ul><ul><ul><li>The transition to industry maturity. </li></ul></ul><ul><ul><li>Competitive strategy in declining industries. </li></ul></ul><ul><ul><li>Competition in global industries. </li></ul></ul><ul><ul><li>Trends affecting global competition. </li></ul></ul><ul><li>Strategy decisions </li></ul><ul><ul><li>The strategic analysis of vertical integration. </li></ul></ul><ul><ul><li>Capacity expansion. </li></ul></ul><ul><ul><li>Entry into new businesses </li></ul></ul>
  17. 17. Structural Analysis of Industries <ul><li>Strategic attractiveness of an industry affected by five forces: </li></ul><ul><ul><li>Rivalry among existing firms. </li></ul></ul><ul><ul><li>Threat of new entrants. </li></ul></ul><ul><ul><li>Bargain power of suppliers. </li></ul></ul><ul><ul><li>Bargaining power of customers. </li></ul></ul><ul><ul><li>Threat of substitute products or services. </li></ul></ul><ul><li>High values of any of these can make industry unattractive strategically. </li></ul>
  18. 18. 5 Forces Diagram
  19. 19. Generic Strategies <ul><li>3 generic strategies: </li></ul><ul><ul><li>Overall cost leadership </li></ul></ul><ul><ul><li>Differentiation </li></ul></ul><ul><ul><li>Focus </li></ul></ul><ul><li>Can be plotted as function of </li></ul><ul><ul><li>Strategic target </li></ul></ul><ul><ul><li>Strategic advantage </li></ul></ul>
  20. 20. Generic Strategy Quadrants
  21. 21. Stuck in the Middle
  22. 22. Meta-Analysis <ul><li>Socratic questions asked? </li></ul><ul><ul><li>What industries attractive in long term & why? </li></ul></ul><ul><li>Data or other model influences: </li></ul><ul><ul><li>Comparisons of industry data. </li></ul></ul><ul><ul><li>Prior work in industrial strategy. </li></ul></ul><ul><li>Model integration & elements: </li></ul><ul><ul><li>Qualitative categories work hierarchically. </li></ul></ul><ul><ul><li>Use of system/process diagrams to illustrate relationships. </li></ul></ul><ul><ul><li>Use of quadrant charts to show key variations. </li></ul></ul><ul><ul><li>Qualitative sketch of functional relationship to help understand consequences of poor strategy. </li></ul></ul>
  23. 23. Strategy: Firm Level <ul><li>Competitive strategy: The core concepts. </li></ul><ul><li>The value chain and competitive advantage. </li></ul><ul><li>Cost advantage. </li></ul><ul><li>Differentiation </li></ul><ul><li>Technology and competitive advantage. </li></ul><ul><li>Competitor selection. </li></ul><ul><li>Industry segmentation and competitive advantage. </li></ul><ul><li>Substitution. </li></ul><ul><li>Interrelationships among business units. </li></ul><ul><li>Horizontal strategy. </li></ul><ul><li>Achieving interrelationships. </li></ul><ul><li>Complementary products and competitive advantage. </li></ul><ul><li>Industry scenarios and competitive strategy under uncertainty. </li></ul><ul><li>Defensive strategy. </li></ul><ul><li>Attacking an industry leader. </li></ul>
  24. 24. Value Chain Analysis <ul><li>Take process/systems view of the firm. </li></ul><ul><li>Imagine generic elements as opportunities for differentiation or other strategic advantage. </li></ul><ul><li>Imagine linkages between activities as opportunity for competitive advantage. </li></ul><ul><li>Consider primary and support activities. </li></ul><ul><li>Recall this is 1985: Aftermath of Japanese quality revolution. </li></ul>
  25. 25. Primary Activities <ul><li>5 primary activities: </li></ul><ul><ul><li>Inbound logistics. </li></ul></ul><ul><ul><li>Operations (manufacturing). </li></ul></ul><ul><ul><li>Outbound logistics. </li></ul></ul><ul><ul><li>Marketing and sales. </li></ul></ul><ul><ul><li>After sales service. </li></ul></ul><ul><li>Where’s product development? </li></ul><ul><li>Assumption in the 80s was category enhancement mentality. </li></ul>
  26. 26. Support Activities <ul><li>4 “support” activities: </li></ul><ul><ul><li>Firm infrastructure </li></ul></ul><ul><ul><li>Human resource management </li></ul></ul><ul><ul><li>Technology development </li></ul></ul><ul><ul><li>Procurement </li></ul></ul>
  27. 27. Value Chain Diagram
  28. 28. Meta-Analysis <ul><li>Socratic questions asked? </li></ul><ul><ul><li>What gives a firm a sustainable competitive advantage? </li></ul></ul><ul><li>Data or other model influences: </li></ul><ul><ul><li>Prior work in industrial org. & strategy. </li></ul></ul><ul><ul><li>Line & staff orientation. </li></ul></ul><ul><ul><li>Extant categories bias. </li></ul></ul><ul><li>Model integration & elements: </li></ul><ul><ul><li>Qualitative categories work hierarchically. </li></ul></ul><ul><ul><li>Use of system/process diagrams to illustrate relationships. </li></ul></ul><ul><ul><li>Diagram showing process flow and bus-characteristics of “staff” functions. </li></ul></ul>
  29. 29. Bottom Line <ul><li>Review of other course models: </li></ul><ul><ul><li>Pink’s, A Whole New Mind. </li></ul></ul><ul><ul><li>Csikszentmihalyi’s, Creativity. </li></ul></ul><ul><ul><li>Price, Vojak & Griffin, Tech Visionaries. </li></ul></ul><ul><li>Porter’s canonical industry & firm models: </li></ul><ul><ul><li>Five forces of industry structure. </li></ul></ul><ul><ul><li>Value chain of competitive advantage. </li></ul></ul><ul><li>Lessons & meta-lessons important. </li></ul><ul><li>Need to build creative models that help in product development, launch, and sustenance. </li></ul>