ICS , Graduate School of International Corporate Strategy
[Term 2] Innovation & Competition (E. Osono) (2008/Term 1&2 (Fall&Winter))
As successful innovation results in growth and better profitability, it is on the top of corporate executives’ most important agendas. However, there are some popular misunderstandings about innovation. The first is to consider only product innovation such as the iPod as an innovation opportunity. The reality is that you can innovate in various areas such as product, process, organizational design, and strategy. Hence, innovation is relevant not only to those companies in technology intensive industries, but to most of all companies. The second is to consider that when innovation happens, it is unpredictable whether it sells or not. Yes, we hear many stories about wrong sales projections of innovative products such as personal computers. However, there are several factors that scholars identified and if you apply them to your own innovation, you can improve the likelihood of success. The third is to believe that innovative attackers suddenly appear and you can not do anything about it. This is not true either. Scholars have found that there are several typologies of innovation and certain types of innovation benefit certain types of companies. Learning those lessons from history will help you to be more effective attackers, as well as being better incumbents in fighting against them.
This course builds on Module 3 (Competitive Dynamics) of the Competitive Strategy Course offered in Term 1 and broadens your understanding of the dynamics of competitive strategy brought about by innovation, where market, technology, and the rules of the game emerge or change. It tries to answer such questions as “which innovations are more likely successful?” “how can a firm win the competition with innovation?”; more particularly, “how can a firm make a profit with innovation?” “why do certain types of companies lose the competition when faced with certain types of innovation?,” and “how should I plan and make decisions within the context of the uncertainties of innovation?” To answer these questions such frameworks as diffusion of innovation, disruptive innovation, architectural innovation, de facto standard war, discovery driven planning, and scenario planning will be introduced.
The course investigates management issues in large, established companies as well as in small, start-up companies, in other words, from the view point of incumbent firms as well as that of new entrants and attackers. This course will take a general manager’s perspective. It does NOT require students to have an engineering background. Indeed, we will focus on issues beyond engineering expertise.
The two innovation management courses in Term 2 (Innovation & Competition) and Term 4 (Innovation & Organization) are complementary since the Term 2 course focuses on strategy and Term 4 on organization. However, they are independent enough so that those students who take only one of the two courses will still learn effectively.
Course Structure
The course consists of three modules.
Module 1: Innovation’s impact on competition
Module 2: Strategic planning under uncertainty
Module 3: Integration
The first module will explain innovation’s impact on competition and possible strategies to take advantage of innovation and organizational resources. The second module will prepare you to develop strategy under uncertainty. The third module will ask you to develop your own strategy and action plans by using the lessons learned in the three modules.
Teaching Method
The course is case-oriented. Learning will take place from your own effort to apply concepts and frameworks to cases as well as comments from your fellow students. Also, student groups will choose their industry at the beginning of the course and will be asked to apply concepts and frameworks you learn in the course to analyze the industry and develop a strategy and action plan for one of the companies in that particular industry as a final paper. Concepts and frameworks will be introduced to you by short pre-readings and/or short lectures.