Innovation Adoption TU-91.123

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Innovation AdoptionTU-91.123 Strategic
Management of Technology and Innovation

• David Ing, IBM Business Consulting Services,
  Canada
• Helsinki University of Technology
• October 21, 2004

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Innovation adoption from two perspectives
Adoption of innovations by customers
Adoption of innovations within the organization
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Source Clayton Christensen, The Past and
Future of Competitive Advantage, MIT Sloan
Management Review, Volume 42, Number 2, (Winter
2001), pp. 105-110.
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The adoption of disruptive innovation by
customers is uncertain

• Disruptive innovations
• Simpler and cheaper gt lower margins
• Interest first in emerging / insignificant
  markets
• Can't be used or not valued by current
  (profitable) customers
• Source Clayton Christensen, The Innovator's
  Dilemma

• Innovation ...
• not just in technology, but in business designs
• Source Adrian Slywotsky, Value Migration

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Source Clayton Christensen, The Past and
Future of Competitive Advantage, MIT Sloan
Management Review, Volume 42, Number 2, (Winter
2001), pp. 105-110.
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Enterprises can be oriented to make-and-sell,
and/or sense-and-respond
Scheduling Make, then Sell
Dispatching Sense Customer Value, then Respond
Source Stephan H. Haeckel, Adaptive Enterprise
Creating and Leading Sense-and-Respond
Organizations, Harvard Business School Press,
1999.
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Economic scope seeks products for customers
economic scale seeks customers for products
Economies of scale gt games against competitors
Economies of scope gt games with customers
Source Peppers Roger (1993)
Source Shank, Pine, Victor, Boynton
Source www.chasmgroup.com
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A customer-back response assembles a unique
structure for each individual request
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A value-producing business adapts as an open,
extended enterprise system of multiple
organizations