An amazing presentation by my coursemates at Harvard on Teeces philosophy of technological investments and venture capitalism.

1. MGMT S-5016
TEESE’S
PROFITING FROM
TECHNOLOGICAL
INNOVATION

2. David J. Teese

3. EMI Cat Scanner

4. RC Cola

5. Complimentary Assets
Imitability

6. Imitabilit
y
Appropriability
Regime
Dominant
Design

7. Appropriability Regime
 Most important dimensions: nature
of technology and efficacy of legal
mechanisms.

9. Nature of Technology
 Product
 Process
 Tacit
 Codified
Tight A.R - ex. Coca Cola (trade secret)
Weak A.R – ex. Bottled water industry

10. Dominant Design
 Pre-paradigmatic stage and
paradigmatic stage
 Competition amongst firms manifests
itself in competition amongst designs
 One design or a narrow class of designs
begins to emerge

11.  Once a dominant design
emerges, competition shifts to price and
away from design Competitive success
then shifts to a whole new set of variables
 Innovation is not necessarily halted once
the dominant design emerge
 Dominant design is of great significance to
the distribution of profits between
innovator and follower
Dominant Design

12. Dominant Design: Examples
 Most of the early PDA companies
failed, even if they had innovative and
sophisticated product designs. Palm
emerged as the winner of PDA
 Videotape format war between Betamax
and VHS, where VHS became the video
standard

13. Examples of Dominant Design
 War of currents between Direct current
and AC power
 Microsoft Windows in the PC operating
system

14. COMPLIMENTARY ASSETS
“ Assets, infrastructure or capabilities needed
to support the successful commercialization
and marketing of a technological innovation ”

16. CRM IN PROFITABLE
INNOVATION

18. AAAAAAAAAAAA
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19. Porter’s Value Chain Model

20. Innovation
Competitive
Manufacturin
g
Distributio
n
Service
Complementar
y Technology
Other
Other
Contractual Mode

21. Contractual Mode
• Inexpensive
• Ideal with Strong
Appropriability
• Gain from Partner
Pros
• Difficult to form
Partnerships
• Bad Partners
Cons

22. Apple

23. Apple Vs. Samsung
http://www.youtube.com/watch?v=Z19vR1GldRI

24. Apple Vs. Samsung

25. Integrated Mode
Innovation
Competitive
Manufacturing
Distribution
Service
Complementary
Technology
Other
Other

26. Integrated Mode
• Scalability
• Ideal with Strong
AppropriabilityPros
• Expensive
• Need a lot of
Complementary AssetsCons

27. Google.com

28. Google.com
 Google has spent north of $23.5 Billion in
acquisitions
 Motorola for $12.5 Billion
 DoubleClick for $3.1 Billion
 YouTube for $1.7 Billion
 Waze for $1.3 Billion
 Android for $50 Million
 Google Engineers – “Googlers”

29. Google.com

30. Implications
 Research according to Strategy
 Co-specialized assets make or break
an innovation
 Forging links within the Industry
 Try to keep the Manufacturing in-
house

31. A story of Dell
 ASUSTeK slowly took upon itself the
responsibility of manufacturing Dell’s
laptops, and eventually usurped them

32. Conclusion