System integration can be combining technologies in a

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System integration can be combining technologies in a new way, or using existing technologies to solve problems in which they were not previously involved. ii. Where to focus? A firm should consider its own needs and capabilities when considering which type of innovation to pursue. A firm may use a strategic group map to determine what competitors are doing. Actions of competitors should be considered when deciding which type of innovation to pursue. o A strategic group map is a means of deciding which of the competitors to monitor. It involves mapping competitors on important factors and determining which competitors are closest to our firm’s business and what those closest to the firm are doing. Example: Recording industry in 2004 had 5 major competitors and then a group of independents. Universal (owner of Motown and others) had the most Grammys (innovative product) and was second in on-line accessibility—behind Sony which had been one of the developers of that technology. Sony led in on-line accessibility but was lagging in producing Grammy-winning music. EMI and BMG were # 2 and #3 in producing winning music. In late 2004, Sony acquired BMG and the strategic map of the industry changed. Now, (early 2006) Universal and SonyBMG have almost 60% of the market and the others are struggling. However, Apple’s IPod technology is hurting Sony in the area where it excelled originally. While concentrating on buying and building innovation in music output, Sony was attacked in a technology area it developed . b. Process Innovation—is designed to increase the efficiencies or the effectiveness of an organization. Changes in processes require the firm and the individuals in the firm to adapt. The most common process innovations involve: i. Restructuring which involves changes in communication and coordination patterns. Indications of the need to restructure are: 3-4
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1. Poor timing of information processing for decision making 2. Missed opportunities or unexpected threats appearing 3. Disruption in the environment that has stressed the firm. An example is another firm introducing a new product that makes the firm’s product obsolete. ii. Most common types of restructuring are: 1. Downsizing—the firm either sells some of its units or lays off employees Downsizing often leaves existing employees overworked, and feeling threatened. This causes expected financial benefits not to accrue to the downsizing firm. 2. Reengineering requires a rethinking of and a radical redesign of work processes. This process has five basic goals: Increasing productivity Optimizing value to shareholders Consolidating business functions Eliminating unnecessary levels and work Accomplishing these goals involves answering 3 basic questions a. Why is work (your work) performed like it is?
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  • Fall '19
  • a. product innovation

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