1
Q
Technology push (Tidd)
A
Applications and refinements which eventually found their way to the marketplace
2
Q
Need pull (Tidd)
A
The market signaled needs for something new which then drew out new solutions to the problem (necessity becomes the mother of invention)
3
Q
Shock trigger innovations (Tidd)
A
Change happens when people or organizations reach a threshold of opportunity or dissatisfaction
4
Q
Ideas proliferate (Tidd)
A
After starting out in a single direction, the process proliferates into multiple, divergent progressions
5
Q
Fluid phase (Tidd)
A
High uncertainty along two dimensions
Target: What will the new configuration be and who will want it?
Technical: How will we harness new technological knowledge to create and deliver this?
No one knows the right configuration, there is extensive experimentation and fast learning by a range of players
6
Q
Dominant design (Tidd)
A
Something which begins to set up the new rules of the game
7
Q
Technological trajectory (Tidd)
A
A ‘bandwagon’ begins to roll and innovation options become increasingly channelled around a core set of possibilities
8
Q
Sailing ship effect (Tidd)
A
A mature technology accelerates its rate of improvement as a response to competition with new alternatives, as was the case with the development of sailing ships in competition with newly emerging steamship technology
9
Q
Strong ties (Tidd)
A
Close and consistent relationships with regular partners in a network
10
Q
Incentives and Pressures that influence the rate and direction of technological innovation (Tidd)
A
- Patterns of national demands: Strong local ‘demand pull’ for certain types of products, generates innovation opportunities for local firms (investment activities, production input prices, local natural resources)
- Competitive rivalry: Stimulates firms to invest in innovation and change, because their existence will be threatened if they don’t
11
Q
Competencies in Production and Research that influence the rate and direction of technological innovation (Tidd)
A
The incentives and pressures will not result in innovation unless firms have the competencies that enable them to respond.
- Seek support in new knowledge/open innovation (universities and research centers)
- Leverage the network of the company (the whole is greater than the sum of its parts)
12
Q
9 factors that influence the firm’s capacity to benefit commercially from its technology (Tidd)
A
- Secrecy: But, it is unlikely to provide absolute protection. Also, firms that share their knowledge outperform those that do not
- Accumulated tacit (understood/implied without being stated) knowledge: When closely integrated in firms, it can be long and difficult to imitate (Italian firms in clothing, Rolls-Royce in aircraft engines)
- Lead times and after-sales service: Protection against imitation by higher cost of entry for imitators. It can establish brand loyalty and credibility, accelerate feedback from customer use to product improvement and learning curve cost advantages
- The learning curve: Lower cost and powerful form of tacit knowledge that is well recognized by practitioners. The first-comer advantage
- Complementary assets: Production, marketing and after-sales to complement the technology
- Product complexity: Long lead times (imitation of planes takes very long), it is an effective barrier to imitation
- Standards: Widespread acceptance of a company’s product standard widens its own market and raises barriers against competitors
- Pioneering radical new products: Not always an advantage because of the risk. Success goes to the ‘early entrants’ with the vision, patience and flexibility to establish a mass consumer market
- Strength of patent protection: They are judged to be more effective than process innovations in protecting product innovations
13
Q
5 factors that affect the rate and extent of adoption of an innovation (Tidd)
A
- Relative advantage: Degree to which an innovation is perceived to be better than the product it supersedes, or competing products (convenience, satisfaction, social prestige etc.) The greater the perceived advantage, the faster the rate of adoption
- Compatibility: Degree to which an innovation is perceived to be consistent with the existing values, experience and needs of potential adopters (availability of information, skilled users, technical assistance and maintenance)
- Complexity: Degree to which an innovation is perceived to be difficult to understand or use. Simple to understand = more rapid adoption
- Trialability: Degree to which an innovation can be experimented with on a limited basis. More learning by doing = more rapid adoption
- Observability: Degree to which the results of an innovation are visible to others. Easier to see the benefits of an innovation = more likely to be adopted
14
Q
What are demand-side (statistical) and supply-side (sociological) models? (Tidd)
A
Demand-side
o Epidemic, based on direct contact with or imitation of prior adopters
o Bass, based on adopters consisting of innovators and imitators
o Probit, based on adopters with different benefit thresholds
o Bayesion, based on adopters with different perceptions of benefits and risk
Supply-side
o Appropriability, which emphasizes relative advantage of an innovation
o Dissemination, which emphasizes the availability of information
o Utilization, which emphasizes the reduction of barriers to use
o Communication, which emphasizes feedback between developers and users
15
Q
What are the conclusions (Tidd)
A
- We need to identify more fruitful ways to begin a more constructive dialogue between pharmaceutical innovation research, policy and practice. There is scope for disruptive innovation from discontinuous technological (e.g. biotechnology), and market changes (funding and regulation of healthcare), but the current conceptualization of innovation in the sector and relationships between actors are likely to simply reinforce historical shortcomings.
- A shift away from an emphasis on inputs, such as the science base and radical technological advances, towards a more balanced support for the whole innovation process, which includes development and diffusion of all types of innovation – technological, commercial, and organizational.
- The assumption that innovation is the consequence of coupling technological opportunity and market demand is too limited. It needs to include the less obvious social concerns, expectations and pressures. These may appear to contradict stronger, but misleading market signals.
- Cumulative incremental improvements to platform technologies often create significant commercial and social benefits.
- Long-term investments in and development of organizational processes and capabilities are necessary to translate scientific and technological opportunities into successful new products and services that are widely adopted and supported.
- An equal and sometimes greater emphasis is needed on the outputs of the innovation process, specifically the processes of diffusion and adoption of innovations. This includes non-zero-sum issues of commercial appropriability and social externalities.
16
Q
Performance trajectories (Bower & Christensen, 1995)
A
The rate at which the performance of a product has improved and is expected to improve over time
17
Q
Sustaining technologies (Bower & Christensen, 1995)
A
Maintain a rate of improvement, they give customers something more or better in the attributes they already value
18
Q
Disruptive technologies (Bower & Christensen, 1995)
A
Introduce a very different package of attributes from the one mainstream customers historically value and they often perform far worse along one or two dimensions that are particularly important to those customers.
Financial managers will rarely support it, technical personnel will likely do support it
19
Q
Upmarket (Bower & Christensen, 1995)
A
Most established companies have higher cost structures to serve sustaining technologies with high(er) profit margins
20
Q
Downmarket (Bower & Christensen, 1995)
A
Disruptive technologies with lower profit margins of the emerging markets
21
Q
Method for spotting and cultivating disruptive technologies (Bower & Christensen, 1995)
A
- Determine whether the technology is disruptive or sustaining
- Define the strategic significance of the disruptive technology
- Locate the initial market for the disruptive technology
- Place responsibility for building a disruptive technology business in an independent organization
- Keep the disruptive organization independent
22
Q
Technology S-curve (Ettlie)
A
Captures the “potential for technological improvement … resulting from a given amount of engineering effort,” which varies over time. First gradual and then rapid improvement of a product’s performance.
Can be used to forecast technology
23
Q
Radical technology (Ettlie)
A
Length of time it takes to be truly different and produce something new to the world
24
Q
Innovativeness (Ettlie)
A
A relative construct, relative to time, content (e.g. the firm may be innovative to production process but not product etc.) and reference domain (internal vs external), that is, compared to the firms various units, the industry, industry in general or other countries or economic regions.
25
Technological forecasting (Ettlie)
- The technology that is being forecast
- The time of the forecast
- A statement of the characteristics of the technology
- A statement of the probability associated with the forecast
If we know the shape of the curve, in this case the S-curve, then it is a matter of determining the a and b coefficients to fit the data to the curve.
The advantage of the Pearl curve (Raymond Pearl) is that shape (how steep) and location can be controlled independently to predict how quickly a technology will emerge and then gradually plateau.
26
Dominant design (Ettlie)
Not necessarily the most innovative design, it is a combination of features, often pioneered elsewhere
27
Evolution of the Productive Segment (Ettlie)
Successful firms tend to invest heavily in product R&D early in the life-cycle of an industry or product group. As the dominant design of a new product emerges, investments shift to process technology and strategies switch to cost minimization as opposed to product feature variety.
To compare the results of investments in manufacturing innovation.
At times the best choice may be to “slow or reverse evolutionary progress or to remain in that particular stage which offers the best trade-off between conflicting objectives (of adaptability and innovativeness vs higher productivity rates)
28
Diffusion (Ettlie)
Most recent research on diffusion of innovations indicate that network effects and network models are in vogue (very popular/fashionable). Networks magnify or diminish a company’s response to product announcements and new product awards. The issue of how companies acquire or change network position from fringe to centrality is still a strategic challenge.
29
Evolutionary theory (Ettlie)
The dynamic process by which firm behavior patterns and market outcomes are jointly determined over time. Firms search for new ideas (technological innovations) to make changes and some grow, whereas others decline.
30
Punctuated Equilibrium (Ettlie)
Technologies evolve through periods of incremental change punctuated by breakthroughs that either enhance (existing firms) or destroy (newcomers) competencies of existing firms in an industry
31
Jolt Theory of Change (Ettlie)
Organizations change only when they are jolted (pushed/shaken) from their environment. Abrupt alterations in environments are generally believed to jeopardize organizations, they offer propitious opportunities for organizational learning, administrative drama and introduction unrelated changes.
32
Disruptive technology (Ettlie)
- Companies depend on customers and investors for resources
- Small markets don’t solve the growth needs of large companies
- Markets that don’t exist can’t be analyzed
- Technology supply may not equal market demand
- Disruptive technologies are lower performing and lower profit than current technology
- Companies overshoot their markets with technology
33
Innovation Regimes (Ettlie)
Principles, norms and ideology, rules decision-making procedures forming actors' expectations and actions in terms of the future development of a technology
34
Embedded digital capability (Yoo et al, 2010)
Cars, phones, televisions, cameras etc. offer novel functions and remarkably improved price/performance ratios that transform their design, production, distribution and use.
35
Digital innovation (Yoo et al, 2010)
The carrying out of new combinations of digital and physical components to produce novel products. (focus on product innovation). The new combination relies on digitization
36
Digitization (Yoo et al, 2010)
The encoding of analog information into digital format. IT makes physical products, programmable, addressable, sensible, communicable, traceable and associable.
37
Digital technology (Yoo et al, 2010)
- Reprogrammability: To perform functions
- Homogenization of data: Binary numbers
- Self-referential nature: Further accelerate creation and availability of digital devices, networks
38
Layered architecture (Yoo et al, 2010)
Bottom-up:
- Device layer: Hardware (physical), operating system (logical)
- Network layer: Cables, transmitters etc. (physical), standards such as TCP/IP or peer-to-peer (logical)
- Service layer: Application functionality
- Contents layer: Data such as text, sound, images, metadata etc.
39
Modular architecture (Yoo et al, 2010)
Offers an effective way to reduce complexity and to increase flexibility in design by decomposing a product into loosely coupled components interconnected through prespecified interfaces.
The key source of value creation is the agility that flows from the ability to rapidly recombine components of a modular product architecture positioned within a single design hierarchy without sacrificing cost or quality
40
Layered Modular architecture (Yoo et al, 2010)
A hybrid between a modular architecture and a layered architecture, where the degree by which the layered architecture adds the generativity to the modular architecture forms a continuum. Aggregating all components will make up the whole product. In a modular architecture, the design of a component is driven by the functional requirements created within the context of a given product.
The product remains fluid and is open to new meanings, unlike the purely layered architecture
41
Agnostic (Yoo et al, 2010)
Something that is not associated with something, open for meanings
42
Doubly-distributed (layered modular architecture) (Yoo et al, 2010)
(a) the control over product components is distributed across multiple firms, and (b) the product knowledge is distributed across heterogeneous disciplines and communities.
43
IT innovation (Kohli & Melville, 2018)
Organizational adoption and diffusion of new IT-enabled processes, products and services. It refers to the adoption of an already-existing IT artifact that is new to an organization
44
Digital innovation (Kohli & Melville, 2018)
A product-centric perspective involving new combinations of physical and digital products to form new products. It refers to the role of underlying architectures of IT artifacts in enabling and constraining the development of new IT artifacts and the implications for structuring and managing innovation within firms.
Includes activities of initiating (triggers, opportunity identification, decision‐making), developing (designing, developing, adopting), implementing (installing, maintaining, training, incentives), and exploiting (maximizing returns, leveraging existing systems/data for new purposes)
45
IS innovation (Kohli & Melville, 2018)
The application of IT artifacts within organizations that requires significant change and leads to new products, services or processes
46
Digital innovation (Hinings et al, 2018)
The creation and putting into action of novel products and services
47
Digital transformation (Hinings et al, 2018)
The combined effects of several digital innovations bringing about novel actors (and actor constellations), structures, practices, values and beliefs that change, threaten, replace or complement existing rules of the game within organizations, ecosystems, industries and fields
48
Institutional theory/perspective (Hinings et al, 2018)
Organizations are not purely rational systems of producing goods and services, adapting to an environment of suppliers, consumers, and competitors. Importantly, they are themselves social and cultural systems that are embedded within an “institutional” context of social expectations and prescriptions about what constitutes appropriate (“legitimate”) behavior.
49
Stasis (Hinings et al, 2018)
The slowing or stopping of something (in this case performance/innovation etc.)
50
(novel) Digital organizational forms (Hinings et al, 2018)
Digitally-enabled arrangement of practices, structures and values constituting an organization's core and that is appropriate in a given institutional context (AirBnb, Uber)
51
(novel) Digital Institutional infrastructures (Hinings et al, 2018)
Standard-setting digital technologies enabling, constraining and coordinating numerous actors' actions and interactions in ecosystems, fields or industries (Product platforms, blockchain)
52
Digital institutional building blocks (Hinings et al, 2018)
Generally-accepted, ready-made or customizable modules encompassing sets of digital technologies for running or creating an organization (ERP, Square, Wordpress)
53
Orchestration (Nambisan et al, 2017)
Problem-solution matching as a microfoundation of digital innovation orchestration; increasing role of digital technologies in enabling or supporting such orchestration
54
Digital innovation management (Nambisan et al, 2017)
The practices, processes, and principles that underlie the effective orchestration of digital innovation.
55
Porous and fluid outcomes (Nambisan et al, 2017)
Digital artifacts are malleable, editable, open, transferable etc. The scope, features and value of digital offerings can continue to evolve even after the innovation has been launched or implemented. This imparts an unprecedented level of unpredictability and dynamism with regard to assumed structural or organizational boundaries of the digital innovation
56
Distributed innovation agency (Nambisan et al, 2017)
An innovation context wherein a dynamic and often unexpected collection of actors with diverse goals and motives - often outside the control of the primary innovator - engage in the innovation process.
Such collectives are highly dynamic in that actors (individuals, organizations etc.) can opt in and out while their goals change, new competencies are needed, motivation shifts, complementary capabilities need to be garnered, new constraints and opportunities emerge or varying contributions become recognized.
57
Less bounded innovations (Nambisan et al, 2017)
With digitization (a) continuously shifting structural boundaries for innovation outcomes and (b) continuously shifting spatial and termporal boundaries for innovation processes
58
Less predefinition of innovation agency (Nambisan et al, 2017)
With digitization, a shift from predefined set of focal innovation agents to evolving innovation collectives with diverse goals, motives and capabilities
59
Less boundaries between innovation process and outcomes (Nambisan et al, 2017)
With digitization, less demarcation and more complex, dynamic interaction between innovation processes and outcomes
60
Computational social sciences (Nambisan et al, 2017)
Set of methodologies for exploring human behavior computationally by using simulations, data mining, behavioral tracking or large-scale field experiments. This is well suited for research on solution-problem pairing and orchestration.
61
Configurational analysis (Nambisan et al, 2017)
Identifying problem-solution pairs and technology affordance research creates a need for methodologies that focus on matching specific conditions for specific outcomes rather than variance explanation.
62
Complexity theory methods (Nambisan et al, 2017)
Has suggested the central role of bottom-up emergence of self-organization, absent outside direction. As such, methodologies for identifying emergence can well-apply to the theoretical element of socio-cognitive sensemaking discussed earlier.
The most traditional form is the use of agent-based models, it identified the emergence of new work practices as an outgrowth of mutual adaptations between technology and users. Alternatively, the emergence can be identified using behavioral studies as when self-organizing crowds evolve to implicitly coordinate their knowledge sharing to amplify their deliberation-resolution capabilities.
Finally, emergence can be identified through field experiments that guide and encourage behavior, but not constrain it.
63
Institutional change
Change in an entire class, industry or organizations. Institutional change, at its deepest level, refers to changes in the ideas that govern institutions. As these ideas change, rules and practices shift as well.
64
Hype
Promote or publicize (a product or idea) intensively, often exaggerating its benefits
65
Trend
Shift or change in the fundamental business dynamics within an industry. Business trends tend to drive enterprise-wide strategic decisions and are the result of shifts in attitudes, values, technologies and the economic landscape.
66
Techno-centric (Orlikowski, 2007)
Understanding how technology leverages human action and tends to assume that technology is largely exogenous, homogeneous, predictable and stable
67
Human-centered (Orlikowski, 2007)
How humans makes sense of and interact with technology in various circumstances. Interpretations, interests and interactions are seen to vary by time and place, entailing a more dynamic and situated view of the relationship of technology with organizations.
68
Materiality (Orlikowski, 2007)
The quality or character of being material or composed of matter
69
Constitutive entanglement (Orlikowski, 2007)
To escape giving privilege to either the social or the material but to embrace “[a] form of mutual reciprocation”; “there is no social and that is not also material, and no material that is also social
70
Temporally emergent (Orlikowski, 2007)
They (Google-mediated search activities) are not dependent on either materiality or sociality, nor some interaction between them (these are seen as distinct domains)
71
Sociomateriality (Orlikowski, 2007)
A theory built upon the intersection of technology, work and organization, that attempts to understand "the constitutive entanglement of the social and the material in everyday organizational life." It is the result of considering how human bodies, spatial arrangements, physical objects, and technologies are entangled with language, interaction, and practices in organizing.
72
Pervasive digital technology (Yoo et al, 2012)
The incorporation of digital capabilities into objects that previously had a purely physical materiality (adding software to a screwdriver or adding medical sensors to clothing).
73
Physical materiality (Yoo et al, 2012)
An artifact that can be seen and touched, are generally hard to change and that connote a sense of place and time (shoes carry social meanings of appropriate use and settings)
74
Digital materiality (Yoo et al, 2012)
What the software incorporated into an artifact can do by manipulating digital representations (a running shoe can record representations of movement in a digital format, wheras one without a chip cannot)
75
Technology affordance (Yoo et al, 2012)
An action potential, that is, to what an individual or organization with a particular purpose can do with a technology or information system
76
Convergence (Yoo et al, 2012)
Enabled by technology affordances.
First, it brings previously separate user experiences together, for example the “quadruple-play” (combining broadband, Internet, phone, TV services and mobile Internet) is a direct outcome of the affordances of pervasive digital technology for bringing together media contents, storage and distribution technologies (Spotify, Hulu etc.)
Second, affordances create convergence because digital technology is increasingly embedded into previously nondigital physical artifacts (smart products and tools). A single artifact can create multiple new affordances, each of which previously required a separate product or tool (smartphone can afford voice call, photo taking, games etc. that a user could possibly need)
Third, the initial convergence of media and products discussed above sets in motion another type of convergence by bringing together previously separate industries (Skype now directly competes with traditional telecommunication companies)
77
Generativity (Yoo et al, 2012)
A technology’s overall capacity to produce unprompted change driven by large, varied and uncoordinated audiences.” It means that digital technologies become inherently dynamic and malleable. Technology provides the basis for organizational function dynamics and trigger consequent changes in functioning
First, because of its reprogrammable nature, pervasive digital technology exhibits a procrastinated binding of form and function, meaning that new capabilities can be added after a product or tool has been designed and produced (smartphones with apps establish a platform, which enables innovations by third-party developers to be integrated into the platform after the fact)
Second, Generativity is manifested as wakes of innovation (the introduction of a suite of 3D visualization tools in the construction industry changed the role and scope of surveyors, dramatically increasing the number of points they located during a construction project. This, in turn, required a different locus of control over the surveying function and introduced new forms of contracts and project management.
Finally, it is generative because it leaves an unprecedented volume of digital traces as by-products. These can lead to new innovations that were not anticipated by the original innovators on consumers (derivative innovations) (some innovators could start streaming, integrating and analyzing data from our jogging exercises and use them to create personalized training plans and follow their progress)
78
Digital technology platforms (Yoo et al, 2012)
A building block, providing an essential function (central focus) to a technological system, which acts as a foundation upon which other firms can develop complementary products, technologies or services.
79
Distributed innovations (Yoo et al, 2012)
The increasingly distributed nature of the innovation product and process. The locus of innovation activities is increasingly moving toward the periphery of organizations. Consequently, firms are drawing on novel forms of organizing, such as online communities, open innovation and innovation challenges, to harness creativity outside of the organization. The distributed innovation spurred by pervasive digital technology increases the heterogeneity of knowledge resources needed in order to innovate (convergent products may derive from completely different industries and unrelated bodies of knowledge). The development of digital tools combines the knowledge, data and processes of diverse physical machines that were previously disconnected.
80
Combinatorial innovation (Yoo et al, 2012)
Firms are creating new products or services by combining existing moduels with embedded digital capabilities, this has become a new source of innovation.
81
Constrained serendipity (Yoo et al, 2012)
Emergent and serendipitous (unplanned) behavior is supported among distributed organizations
82
Product innovation (Oslo Manual)
A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics
E.g. going into the cloud --> improvement in technical specifications
83
Process innovation (Oslo Manual)
A new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software
E.g. going into the cloud --> enhancing the process from hardware to online software, digital security etc.
84
Marketing innovation (Oslo Manual)
A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing
E.g. going into the cloud --> faster engagement with customers
85
Organizational innovation (Oslo Manual)
A new organizational method in business practices, workplace organization or external relations
E.g. going into the cloud --> we need to make a new department for cloud and cyber security
86
Information System
The combination of technologies (what), people (who) and processes (how) that an organization uses to produce and manage information (Digital Transformation)
87
Information Technologies
All forms of technology used to create, store, exchange and use information: Computers, network, mobile phones etc. (Digitization)
88
Digital Transformation (Gartner)
Can refer to anything from IT modernization (for example, cloud computing), to digital optimization, to the invention of new digital business models. The term is widely used in public-sector organizations to refer to modest initiatives such as putting services online or legacy modernization. Thus, the term is more like “digitization” than “digital business transformation.”
89
Digital innovation
The use of digital technology in a wide range of innovation
90
Digital/digitization
The conversion from mainly analog into the binary language understood by computer (Yoo et al, 2010)
91
Stasis
Refers to a long period of relatively unchanged form
92
Punctuated equilibrium
Consistent, cumulative changes to species
93
Natural limit
Organic, our human limit (we are not ready to cope with it/accept it). The natural follows the physical
94
Physical limit
The limitation of the technology of some element. The natural follows the physical
95
Discrete set of boundaries
There is a beginning and an end
96
Breakthrough
A sudden, dramatic, and important discovery or development.
97
Routines
Patterns of behavior associated with the process, they are reinforced and adapted as the organization learns about managing innovation
98
Shift
A slight change in position, direction, or tendency.
99
Digital Transformation (Nambisan et al, 2017)
The creation of (and consequent change in) market offerings, business processes, or models that result from the use of digital technology. Stated differently, in digital innovation, digital technologies and associated digitizing processes form an innate part of the new idea and/or its development, diffusion, or assimilation
100
Digital Transformation (Yoo et al, 2010)
We define digital innovation as the carrying out of new combinations of digital and physical components to produce novel products. Our use of the term digital innovation thus implies a focus on product innovation, distinguishing it from extant IT innovation research that has been primarily occupied with process innovation
101
Punctuation
Radical change over a short duration
102
Dominant relative frequency
The rate these events (stasis, punctuation) occur in a particular situation
103
Mimetic isomorphism
Adoption becomes a way of demonstrating organizational legitimacy through copying other organizations
104
Coercive legitimacy
Adoption is legislated because of that social legitimacy
105
Normative legitimacy
Adoption is diffused as the approriate professional standard
Innovation & Digital Transformation
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