Putting it all together

1. Putting it all together Lecture 5 IEM5010 Summer 2002 Paul E. Rossler, Ph.D., P.E.

2. Essay 5 • To what degree does Takahashi’s account of Microsoft’s Xbox effort reflect the ideas, concepts, or principles identified by various authors in the course readings, by yourself in your other essays, and discussed by us throughout this course? • What are those key ideas, concepts, and principles? • What is your action plan for improving your ability to lead and manage new technology or change initiatives?

3. Some key concepts from “Inside the Xbox” • The strategy tax in the competition for eyeball hours • Gaining traction • Signing up • Lessons learned (of Sims, Trespasser, 3DO, content is king, threat from below…) • Technical evangelists • The business side • Company culture

4. Factors in 10 technology disasters • Specifications decided by technology-illiterate customer • Less than honest communication • Relying on guesswork; Ignoring scale effects • Cutting corners to cut cost • Lack of attention to detail Please refer to Excel spreadsheet/handout

5. Factors (continued) • Mismatch between new technology and old ones • Foregoing proven technologies for novel ones • Over-reliance on technology • "Normal" accidents inherent in system design

6. Why some projects fly and others crash and burn

7. What makes some development efforts succeed? Willingness to Cooperate Level of Interpersonal Trust Propensity to Experiment and Adapt Comfort Level With Changes Form Cross- Functional Teams Integration of Diverse Skills Culture Team Leadership Top Management’s Tolerance for Delays and Failures Access to Information and Resources Based on Jassawalla, A.R. and H.C. Sashittal, Building collaborative cross-functional product teams. Academy of Management Executive, 1999. 13(3): p. 50-63.

8. Squires thinks that hierarchical structures cause problems

9. He also thinks that maestros of technology are key to success • Possess great technical and managerial skills • Didn’t rush into management but served apprenticeships that provided tests of competence • Focus on improvement rather than innovation • Aren’t seduced by gadgets or new technology • Understand Watson-Watts Law of Third Best

10. Watson-WattsLaw of Third Best Best never comes. Second best takes too long or costs too much. Pick the third best and get on with it.

11. Maestros of technology (continued) • Show tremendous loyalty to the project’s objectives • Workaholics • Get around; know what’s happening • Aren’t concerned about position • Help others become maestros

12. Complex projects require a great many maestros and… • A great leader who ensures they cooperate and who sorts things out when they don’t

13. The Abilene Paradox “Organizations frequently take actions in contradiction to the data they have for dealing with problems and, as a result, compound their problems rather than solving them.” Source: J. B. Harvey, The Abilene Paradox and other meditations on management (Lexington, MA: Lexington Books, 1988).

14. The very different fourth attempt • In 1753, John Jefferys follows Harrison’s design specs and makes him a pocket watch • Changes Harrison’s vision of the sea clock • H4 takes roughly four years to complete (1755-1759) • Presented to Board in 1760

15. It’s here that the story takes a turn • Astronomy-based methods had been making steady progress • In 1731, Hadley and Godfrey independently created the instrument on which lunar method depended (quadrant or octant  sextant) • By late 1750s, lunar distance method finally looked practical • Flamsteed  Halley  Bradley • Tobias Mayer • Reverend Nevil Maskelyne

16. But can it be made? • Kendall’s K2 inferior • Mudge built three (“Maskelyne’s new sparring partner”) • Arnold produced several hundred of high quality • Farmed out bulk of routine work to craftsman

17. But can it be made? (continued) • Mudge’s son built 30, but cost twice as much as Arnold’s, not as good • Arnold and his son’s biggest competition came from Earnshaw • Earnshaw stuck to single basic design • Could turn out chronometer in two months • In “patent” suit with Arnold over escapement design • By 1780s prices down to £80 for an Arnold, £65 for an Earnshaw

18. The road to Watson and Crick, Wilkins and Franklin • In 1943, Oswald Avery proved that DNA carries genetic information • 1948, Linus Pauling discovered that many proteins take the shape of an alpha helix • In 1950, biochemist Erwin Chargaff found that the amount of certain nitrogen bases in DNA always occurred in a one-to-one ratio

19. Two competing (complementary?) paths • At Cambridge University, graduate student Francis Crick and research fellow James Watson employ model building techniques • At King's College in London, Maurice Wilkins and Rosalind Franklin use X-ray diffraction techniques

20. The generation of innovations generally follows six stages Needs • Essentially a communication process and, therefore, labor intensive • Characterized by a high degree of uncertainty R D C Diffusion Conseq. See p. 133 for full model

21. One of the most crucial decisions is the decision to diffuse, to adopt • Innovation gate keeping occurs in a variety of ways (p. 148) • Decision processes • Blanket approval • Recommendations • Consensus development • Trials Diffusion

22. Decision about an innovation is a process, occurring over time Knowledge • Period between awareness-knowledge and decision is gestation period (p. 198) • Distinguishing characteristic is perceived newness of innovation and uncertainty associated with it (p. 161) Persuasion Decision Implement. Confirmation See p. 163 for full model

23. Five attributes explain 49 to 87% of the variance in rate of adoption • Relative advantage (p. 206 ff.) • Compatibility • Complexity • Trialability • Observability

24. Behavior of opinion-leaders helps determine rate of adoption • Degree to which an individual is able informally to influence others (p. 281) • Usually different sets of opinion leaders in a system (p. 288) • Tendency to seek info and advice from leaders perceived as more technically competent (p.289) • But not too much greater!

25. Behavior of opinion-leaders helps determine rate of adoption (cont’d.) • Not necessarily innovators (pp. 294, 354) • Sometimes they are, but often they are not • Depends on whether or not norms favor change • Change agents often err in selecting opinion leaders who are too innovative (p. 295)

26. Behavior of opinion-leaders helps determine rate of adoption (cont’d.) • Must continually look over her or his shoulder to followers (p. 296) • Relationship of respect is a delicate balance • Typically will hold back in adopting high-uncertainty innovations (p. 297)

27. Innovation process consists of two phases and a usual sequence Decision II. Implementation I. Initiation Agenda- Setting Redefining Restructuring Matching Clarifying Routinizing Innovation goes on all the time in organizations (p. 376) Note: Complete model shown on p. 392

28. Summary