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Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms

Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms. Presentation by Sanporn Sampaongern & Chris Safley. The Reconfiguration of Existing Product Technologies and the Failure of Established Firms. Architectural Innovation.

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Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms

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  1. Architectural Innovation: The Reconfiguration of Existing Product Technologies and the Failure of Established Firms Presentation by Sanporn Sampaongern & Chris Safley

  2. The Reconfiguration of Existing Product Technologies and the Failure of Established Firms ArchitecturalInnovation

  3. How minor innovation often creates problems or competitive consequences for established firms. • Conceptual Framework • Innovation in Photolithographic Alignment Equipment

  4. Conceptual Framework • Component and Architectural Knowledge • Types of Technological Change • The Evolution of Component and Architectural Knowledge • Channels, Filters, and Strategies • Problems Created by Architectural Innovation

  5. Conceptual Framework Component and Architectural Knowledge • Component knowledge • Architectural knowledge

  6. Incremental Innovation Modular Innovation Architectural Innovation Radical Innovation Types of Technological Change Core concepts Reinforced Overturned Linkage between core concepts and components Changed Unchanged

  7. Conceptual Framework The Evolution of Component and Architectural Knowledge • A dominant design concept • Once a dominant design is established, progress involves improvements in the components within the framework of a stable architecture. • Firms stop investing in learning about alternative configurations of established components. New component knowledge becomes more valuable to a firm than new architectural knowledge.

  8. Conceptual Framework Channels, Filters, and Strategies • The communication channels, information filters, and strategies an organization uses help it deal with complexity. • Communication channels • Information filters • Problem-solving strategies

  9. Conceptual Framework Problems Created by Architectural Innovation • Established firms require significant time and resources to identify an innovation as architectural • Once the organization has identified an innovation as architectural, it can be difficult to build and apply new architectural knowledge effectively

  10. The Semiconductor Photolithographic Alignment Equipment Industry • Used in manufacture of solid-state semiconductor devices • Used to • position mask relative to wafer • hold the two in place • and expose resist

  11. The Semiconductor Photolithographic Alignment Equipment Industry • Evolution of PAEs • Contact aligners • Proximity aligners • Scanning projection • First-generation stepper • Second-generation stepper

  12. Relatively small number of firms and quick rate of technological innovation Industry has gone through 4 waves of architectural innovation – each resulting in new entrant capturing market leadership Why study the Industry?

  13. About the study • Field-based study of industry • Data was collected over a 2 year period • Included data from 1962 – 1986 • Collected by primary and secondary sources • Core data set of: • R&D costs • Sales revenue • Managerial and technical history of projects

  14. About the study • Supplemental data from interviews with project development team members • Validation of data from interviewees and others that knew the firms’ histories

  15. The case: Kasper Instruments • Company overview • What happened? • Why?

  16. Conclusion • Things to remember • Address the natural inclination • Organizational learning • Architectural innovation used as a tool

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