Maximizing Breakthrough Inventions for Organizational Growth
Explore the significance of breakthrough inventions in driving corporate reinvention, business growth, and new development. Learn how established firms can create fundamental technological breakthroughs. Delve into the obstacles hindering breakthrough inventions and the importance of shifting from single-loop to double-loop learning.
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Presentation Transcript
Breakthrough invention Definition Source of competitive advantage Core of entrepreneurship activity and wealth creation Basis of future technology, product and service Enhance social welfare Identifying strategies that can help to improve their record of breakthrough inventions can serve as internally generated opportunities for corporate reinvention, business growth, and new business development.
In this paper Breakthrough inventions are often likely to originate with entrants rather than incumbents. However, recent research suggests that established firms may actually be contributing breakthrough inventions to a far greater extent than is generally recognized. The author examines the issue of how established firms create such breakthrough theoretical model that explains how established firms create fundamental technological breakthroughs inventions and develop
Basic premises of organizational learning 1. Organizational behavior is based on routine. 2. Routines are oriented to targeted outcomes. Established routines lead to distinctive competence and specialization.
Firms survival and success 1. It must satisfy market demands or needs. Its ability to provide reliable high-quality outputs in an efficient and predictable fashion is likely to be key to its success and survival. 2. A firm must attempt to develop a competitive advantage A firm needs to develop a distinctive competence, a unique capability housed in the organization that differentiates it from its competitors. Capability rigidity paradox
Obstacles of breakthrough invention Relying on mature technology Favoring the retention of specialization rather than experimentation Establishing bureaucratic procedures and structure that favors proximate domains of technology 1. 2. 3. The dominance of single-loop learning.
http://www.nwlink.com/~donclark/leadership/ooda_orientation%20.htmlhttp://www.nwlink.com/~donclark/leadership/ooda_orientation%20.html
Discussion What are the challenges of shifting from single loop learning to double loop learning? How can an organization overcome the challenges?
Three traps Familiar trap Novel technology Maturity trap Emerging technology Propinquity trap Pioneering technology
1. Familiar trap Familiar technology Builds cycle of experience and competence Yields more immediate returns. EXPERINECE WITH TECHNOLOGY INCREASED USAGE Familiar trap Mutual positive feedback between experience and competence familiar preferable exploration of new ones. ENHANCED ABSORPTIVE CAPACITY AND INCREASED COMPETENCE make technologies to the the
1. Novel technology Definition Technologies that are new to the organization Benefits It provides the benefit of heterogeneity in its problem-solving arsenal. The stability of existing cognitive structures and cause-effect relationships is challenged. Excessive exploration Source of confusion and information overload A firm's creation of breakthrough inventions is related to its exploration of novel technologies in a curvilinear manner.
2. Maturity trap Maturity technology Technologies that have been in existence for some time and are relatively well known and understood in the industry. Advantages of mature technology Offer greater reliability and reliable performance Likely to have highly developed value networks and extra- organizational assets Offer the benefits of legitimacy Maturity trap The assets and commitment favor the further development of mature technologies and lack of exposure to immature technologies.
2.Emerging technology Definition Leading edge technologies that are recent or new to the entire industry Two mechanisms Perspective of unsolved problems Prospect of recombinatory solution 1. 2. Excessive exploration Challenges organization's focus and resources A firm's creation of breakthrough inventions is related to its exploration of emerging technologies in a curvilinear manner.
3. Propinquity trap Advantages of propinquity technology Less risky Provides some assurance Conserves cognitive effort and resources Propinquity trap Their propensity to search for solutions in the neighborhood of existing solutions. Caused by risk aversion, organizational routines, and bureaucratic convenience
3. Pioneering technology Definition Technologies that have no antecedents and focus on completely de novo solutions. Excessive exploration Cognitive overload Curvilinear manner Financial and expenditure overload Positive relationship
Virtuous cycle of corporate entrepreneurship Breakthrough inventions Pursuit of novel, emerging and pioneering technologies Create wealth and surplus resource
