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Chapter 6 113

Porters five forces model 114

Degree of existing rivalry 115

Oligopolistic industries 115

Exit barriers 115

Threat of potential entrants 116

Entry barriers 116

Bargaining power of suppliers 116

Switching cost 116

Vertical integration 116

Bargaining power of buyers 116

Threat of substitutes 117

Complements 117

Stakeholder analysis 117

Stakeholder 117

Internal analysis 118

Porters value chain 119

Tacit resources 119

Value chain analysis for take2 interactive software 120

Socially complex resources 121

Casually ambiguity 121

Identifying core competencies and capabilities 121

Core competency 122

Prahalad and hamel 123

The risk of core rigidities 124

Dynamic capabilities 124Research brief- identifying the firms core

competencies

125

Strategiec intent 125

Theory in action the balanced scorecard 126

Identifying the resource and capability gap 127

Chapter 7 136

Capital rationing 136

The development budget 136

R&D intensity 136

Quantitative methods of choosing projects 137

Theory in action financing new technologicalventures 138

Family, friends and credit cards 138

Government grants and loans 138

Angel investors 138

Venture capital 138

Discounted cash flow methods 139

Net present value 139

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Internal rate of return 139

Net present value 140

Discounted payback period 140

Internal rate of return 141

Real options 142

Examples of real call options 143Qualitative methods for choosing projects 144

Screening questions 144

Role of customer 144

Role of capabilities 145

Project timing and cost 145

Cost factors 146

The aggregate project planning framework 146

Derivative project 147

Platform project 147

Breakthrough project 147

Advanced project 147Q-sort 148

Combining quantitative and qualitative analysis 149

Conjoint analysis 149

Data envelopment analysis 149

Theory in action courtyard by Marriott 150

Efficiency frontier 151

Chapter 8 159

Reasons for going solo 159

Availability of capabilities 159

Protecting proprietary technologies 160

Controlling technology development and use 160Alliance 160

Building and renewing capabilities 161

Advantages of collaborating 161

Joint venture 162

Types of collaborative arrangements 164

Strategic alliances 164

Licensing 164

Capability complementation 165

Capability transfer 165

Technology alliance strategies 165

Joint ventures 166Licensing 166

Outsourcing 167

Contract manufacturing 167

Collective research organizations 168

Choosing a mode of collaboration 169

Choosing and monitoring partners 171

Partner selection 171

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Impact on opportunities and threats in external

environment

172

Impact on internal strengths and weaknesses 173

Impact on strategic direction 173

Partner monitoring and governance 173

Governance 173Research brief strategic positions in collaborative

networks

174

Chapter 9 188

Appropriability 188

Tacit knowledge 188

Socially complex knowledge 188

Patents, trademarks and copyrights 189

Patents 189

Patent law around the world 190

Paris convention for protection of industrial

property

191

Patent cooperation treaty 192

Trademarks and service marks 193

Trademark protection around the world 193

Copyright 194

Copyright protection around the world 195

Trade secret 195

The effectiveness and use of protection

mechanism

196

Open source software 197

Wholly proprietary systems versus wholly open

systems

197

Theory in action IBM and attack of the clones 198

Original equipment manufacturers (OEM) 199

Advantages of protection 199

Architectural control 200

Advantages of diffusion 200

Production capabilities, marketing capabilities, and

capital

201

Theory in action sun microsystems and java 202

Introducing java: a universal language 202

Liberal licensing 202

A change in policy 202

Industry opposition against sole-source technology 203

Resources for internal development 203

Control over fragmentation 204

Incentives for architectural control 204

Chapter 10 213

Size and structural dimensions of the firm 213

Size: is bigger better 213

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Theory in action Xerox and the Icarus paradox 215

Disaggregated 215

Structural dimensions of the firm 216

Formalization 216

Standardization 216

Centralization 216Mechanistic versus organic structures 218

Organic 218

Size versus structure 218

Theory in action shifting structures at 3M 219

Ambidextrous organization 220

The ambidextrous organization: the best of both

worlds

220

Skunk works 220

Modularity and loosely coupled organizations 222

Modular products 222

Loosely coupled organizational structures 223Managing innovation across borders 224

Theory in action the loosely coupled production

of Boeings 787 Dreamliner

225

Center-for-global strategy 226

Local-for-local strategy 226

Locally leveraged strategy 227

Globally linked strategy 227

Chapter 11 238

Objectives of the new product development

process

239

Maximizing fit with customer requirements 239Minimizing development cycle time 240

Development cycle time 240

Controlling development costs 241

Sequential versus partly parallel development

processes

241

Partly parallel development process 241

Theory in action the development of zantac 243

Project champions 243

Risks of championing 244

Involving customers and suppliers in the

development process

244

Research brief five myths about product champion 245

Involving customers 245

Lead users 246

Involving suppliers 246

Theory in action the lead user method of product

concept development

247

Tools for improving the new product development 247

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process

Stage-gate processes 247

Go/kill decision points 247

Typical stage-gate process, from idea to launch 248

Quality function deployment (QFD) the house of

quality

250

Design for manufacturing 252

Failure mode and effects analysis 253

Computer aided design/ computer aided

manufacturing

253

Theory in action computer aided design of

americas cup yacht

254

Tools for measuring new product development

performance

254

New product development process metrics 255

Overall innovation performance 256

Chapter 12 265Constructing new product development teams 266

Team size 266

Social loafing 266

Team composition 266

Cross-functional teams 266

Homophily 267

Research brief boundary-spanning activities in new

product development teams

268

Functional teams 269

Lightweight teams 270

Heavyweight teams 270

Autonomous teams 270

The management of new product development

teams

271

Team leadership 272

Team administration 272

Project charter 272

Contract book 272

Managing virtual teams 273

Virtual teams 273

Research brief virtual international R&D teams 274

Gassman and von zedtwitzs typology of

international virtual teams

274

Chapter 13 287

Launch timing 288

Strategic launch timing 288

Optimizing cash flow versus embracing

cannibalization

289

Cannibalization 289

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Licensing and compatibility 290

Backward compatible 290

Pricing 291

Penetration pricing 291

Distribution 293

Selling direct versus using intermediaries 293Manufacturers representatives 293

Wholesalers 293

Retailers 293

Original equipment manufacturers (OEM) 294

Disintermediation 294

Strategies for accelerating distribution 295

Alliances with distributors 295

Bundling relationships 296

Contracts and sponsorship 296

Guarantees and consignment 296

Marketing 297Major marketing methods 297

Advertising 297

Advantages and disadvantages of major

advertising media

298

Promotions 298

Publicity and public relations 299

Tailoring and marketing plan to intended adopters 299

Theory in action generating awareness for

domosedan

300

Using marketing to shape perceptions and

expectations

301

Preannouncements and press releases 301

Research brief creating an information epidemic 302

Reputation 302

Credible commitments 303