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Transilience map & analysis
The document introduces the concept of a "transilience map" which maps types of innovation on two axes based on their impact on technology/production and markets/customers. The map shows four categories of innovation: architectural, market niche, regular, and revolutionary. It provides examples of each type and discusses how users can influence innovation and the managerial implications of the different innovation types.
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Transilience map & analysis
- 1. Innovation: Mapping thewinds of creative destruction W. Abernathy & K. Clark Carlos Hidalgo Radu Irava Aman Kalsi Ferry Ignasius Challenge the future 1
- 2. Content 1. Introduction 2. TransilienceMap 3. Innovations 4. Users Inflluence 5. Management Relevance 6. Conclusions Challenge the future 2
- 3. Introduction • Conservative Scale •Innovations serve to enhance the value or applicability of the firm’s existing competence. • Radical Scale • The effect of innovation is disruptive and destructive. Challenge the future 3
- 4. Introduction • Technology/Production • Design •Production systems • Skills (labor, mangerial, technical) • Materials • Kowledge and experience • Market/Customer • • • • • Customer Relations Customer Applications Channels of distribution Customer knowledge Modes of commuication Challenge the future 4
- 5. Transilience Map • Consistsof a composite transilience scales for each domain as the axes of a two-dimensional diagram Conserve Existing Competence Markets/Customer Create new linkages Technology/Production Disrupt/obsolete Conserve Existing linkages Challenge the future 5
- 6. Disrupt existing/ createnew linkages Conserve / entrench existing competen ce Disrupt/ obsolete Technology/Production existing competen ce Conserve/ entrench existing linkages Challenge the future 6
- 7. Architectural • Creates newindustries (ex: radio) / Reforms old industries (ex: photo typesetting) • Opens new markets • Defines basic configuration of product and process • Establishes technical and marketing agendas • Reveals the architecture and competition occurs • Ex: flywheel magneto, vanadium stell alloy Challenge the future 7
- 8. Market Niche • • • • • • • New marketopportunities through existing technology Conserve and strengthen established designs “Sales maximization” (Utterback) Improved applicability Insuffiecient for long term advantage Timing and quick reaction are very important Ex: Ford Model A, fashion apparel, Sony Walkman Challenge the future 8
- 9. Regular • • • • • • Builds on establishedtechnology and existing customers Almost invisible, incremental change Ex: Rocket engines, Computers, Synthetic fibers Dramatic effect on product cost and performance Takes place over a significant period of time Ex: Model T: $1200 -> $290 (18 years), capital increased Challenge the future 9
- 10. Revolutionary • Disrupts establishedtechnology but applied to existing markets • Ex: Vacuum tubes, Mechanical calculators • Duel Ford (mass production) – GM(new concepts) • Ex: Closed steel body • New technology, higher costs • Not all have profound impact: fail market needs, production problems, poorly timed Challenge the future 10
- 11. Users Influence Sample Influence Welding Machine Moving assembling line +Reliable performance - Vulnerable to change + Easy supervision & Inv. Management - Limited experience - Rigid & limited for other change + Less training + Less inventory - Rise minimum economics scale Finish Coating Challenge the future 11
- 12. Users Influence Sample : 1.Fordmodel T Variety of machines - Versatility customers and users 2.Engine Mounting Low Power – less vibration Influence : Greater understandings Other improvements Challenge the future 12
- 13. Users Influence - New technicalconcept Changes from market demand Government policy Sample : CHRYSLER 1920 – 1939 : Focus on architecture & revolutionary innovation had passed Ford in Market share 1940s : Focus on regular & niche innovation its market share decline 1950-1960s : inefficient & not innovative Influence : Reversal development Challenge the future 13
- 14. Managerial Implication • • • • • New wayof assessing different kinds of innovation is 'Transilience map‘ Architectural innovation – Creative synthesis about the user needs and new technological needs. Niche Creation - Timing is the essence of management. Regular Mode - Methodical planning and consistency to ensure technological progress, engineering improvements and continued process development. Revolutionary Innovation - There needs to be a technological push. Challenge the future 14
- 15. Conclusion Transilience map requiresfurther study. The need to examine the impact of innovation on market structure during periods of transition. A balance between different innovations at the same firm. Challenge the future 15
Editor's Notes
- #2 {"3":"Conservative Scale: Solve Problems, Eliminate failures, attract customers\nRadical scale: impose new requirements, make obsolete, create new markets\n"}