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Strategic Innovation

Strategic Innovation. Egg Drop. Build device that will protect egg from breaking after falling from a reasonable height Materials: Masking tape (rationed to 2 yards) Plastic straws (rationed to a hand-full) The egg must be visible inside your device. Egg Drop.

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Strategic Innovation

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  1. Strategic Innovation

  2. Egg Drop • Build device that will protect egg from breaking after falling from a reasonable height • Materials: • Masking tape (rationed to 2 yards) • Plastic straws (rationed to a hand-full) • The egg must be visible inside your device

  3. Egg Drop • Egg that falls from highest release point without breaking wins • Timeline: • 30 minutes for Design and Construction • Drop Eggs…Competition • Discussion

  4. Egg Drop • What happened? • What are important processes and dimensions of strategic innovation? • Goals • Planning • Design • Imitation • Resources and capabilities • Construction process • Competition • Risk • Time

  5. High Jump Innovation: Scissor Kick 1929: 6’8”

  6. High Jump Innovation: Forward Roll 1960: 7’1”

  7. High Jump Innovation: Fosbury Flop 1968-present: 7’7” to 8’ ½”

  8. High Jump Innovation 2.75m 2.50m 2.25m 2.00m Fosbury Roll Scissor 1925 1950 1975 2000 2025

  9. High Jump Innovation 2.75m 2.50m 2.25m 2.00m The Ferrier Flight ? Fosbury Roll Scissor 1925 1950 1975 2000 2025

  10. Value-creating vs. Value-enhancing Strategy Profit Plateau Competition Erodes Profits New Product Introduction Profit Product1 Product2 Product3 Product4 time

  11. Apple iPod

  12. Value-creating vs. Value-enhancing Strategy Profit Plateau Competition Erodes Profits New Product Introduction Profit Value-creating Innovation Product1 Product2 Product3 Product4 time Value-enhancing Innovation Profit Product1 Product2 time Introduce iPod Windows compatible iPod Photo WiFi iPod Price Cut iPod Video iPod + Nike Shoe iPod Mini BMW iPod Adaptor iPod Wireless Remote iPod + Timex Watch

  13. Apple’s iPod Innovation Network Alliance Network and Innovation 10 parts create 85% of the iPod’s cost Samsung (Korea) – Mobile SDRAM memory Toshiba (China) – Hard Drive Toshiba-Matsushita (Japan)- Display Module Nike Disney Timex Broadcom (Singapore)-Multimedia Processor PortalPlayer (US) Portal Player CPU Apple iPod Inventec (Taiwan)-Assembly, Testing Renesas (Japan) Display Driver Digital Music Group Ford Delta Airlines GM Unknown Battery Pack Unknown Mainboard PCB Unknown Back Enclosure Source: Portelligent, Inc. and Linden, Kraemer & Dedrick, 2007. 400 additional inputs with values from $2 to fractions of a penny, with an average value of $.05

  14. Alliance Network and Innovation Apple Computuer High Level of VC + VE Apple – alliance network in 1995 Apple – alliance network from 1995-1997

  15. Introducing the iPod Commode-dore…

  16. Innovation (good intentions)……………..……………….flop

  17. Sun Chips Compostable Bag

  18. Sun Chips Compostable Bag

  19. Sun Chips Compostable Bag Wall Street Journal notes… 95 decibels (~ fighter jet cockpit) Couch potatoes can't hear their TVs over the sound of the SunChips bag “I came home a little stoned at 2:00 a.m. and woke up my parents with the SunChips bag.”

  20. Unique Perspective

  21. How do you define the coffee industry? Leisure, Enjoyment, Social Interaction • Coffee • Packaged • Convenience coffee • Café/restaurant drinking Caffeine Source Food & Beverage Item Fashion

  22. How does Starbuck’s define coffee industry?

  23. Red vs. Blue Oceans

  24. Coffee’s Next Blue Ocean? ? Strategic Dimension 2 Strategic Dimension 1

  25. Early U.S. Auto Industry

  26. Strategic Map: PC Industry(Pre-MacIntosh) Fast/ High Capacity IBM Apple II Wang Slow/ Low Capacity Low Price High Price

  27. Strategic Map: PC Industry(Post-McIntosh; Pre-Dell) • User Friendliness • GUI • Drop & Drag • Mouse • WYSIWYG AppleMacIntosh Wang IBM DOS-based Operating System >copy *.doc A:\ Low Margin High Margin

  28. Strategic Map: PC Industry (After Dell Enters) Dell High Quality & Dependability Apple H-P Lenovo Low Price Adequate Quality High Price “Regular” Supply Chain Management “Efficient” Supply Chain Management

  29. What’s the next big thing? ? Strategic Dimension 2 Strategic Dimension 1

  30. Personal Computers …what’s the next big thing? Strategic Dimension 2 ? Strategic Dimension 1

  31. Tablet PC IBM Wearable PC IBM Mainframe Compaq Laptop Apple II Apple iPad Apple MacIntosh IBM PC Compaq Portable

  32. Old-is-New Innovations Slow Drip Filter Coffee Maker

  33. Old-is-New Innovations VW Beetle

  34. Old-is-New Innovations Fiat 500

  35. LG Internet Refrigerator

  36. Airbus A380

  37. Segway Personal Transporter

  38. Tooth Tunes

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