Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms\" defines four types of innovations: incremental, modular, architectural, and radical. Established and stable firms are inherently organized such that incremental and modular innovations are successfully handled. Radical innovations are easily recognized and are managed accordingly by forming specialty design groups to develop them. Architectural innovations use existing core design concepts in a new architecture that have a significant impact on the relationships between components than on the technologies of the components themselves. Architectural innovations are often mistaken for incremental innovations. Management needs to be able to identify architectural innovations such that proper resources are allotted and design groups are restructured. Questions How are component versus architectural knowledge managed inside an organization? How do you identify an architectural innovation? How do you allocate existing resources to develop an architectural innovation successfully? Solution (1) Answer:- Component knowledge is very useful for organization . Component knowledge is the knowledge that relates to a subroutine or discrete aspect of an organization’s operations. It is knowledge that relates to parts or components rather than the whole. Architectural knowledge, conversely, relates to the whole that is, to organization-wide routines and schemas for coordinating the various components of the organization and putting them to productive use. (2) Answer:- We can identify architectural innovation in organization by help of this. Architectural innovation is useful and needs to be applied in the new product, but some of what it knows is not only not useful but may actually handicap the firm. (3) Answer:- Architectural innovation presents established firms with a more subtle challenge. Architectural innovation is embedded in channels, filters, and strategies, the discovery process and the process of creating new information usually takes time..