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Technology superiority -> dominant design is enough to market Apple Macintosh (1984)
Apple proprietary applications
Second choice
Wide adoption and emerge as dominant design Customer put greater values to IBM PC Continuing PC market domination with upgrade and extension of windows products
Technology Innovation TI and Characteristic TI Benefits Standards for Technology Innovation Compatibility & Standard Standard & Characteristics Standards vs Values of Innovation Standards & Market Competition TI using Standards Standards as a Baseline for Innovation Standards for Innovation Promotion by Government
Invention
Innovation
Technology Innovation :
combining creativity with resources and expertise in related technologies to develop new products or processes Innovative product/process : uniqueness in form, function, or behavior Major component in developing technology among firms Yield far better returns Important drivers of competitive success in many industries
Marquis (1981)
Inovasi dibagi menjadi tiga jenis yaitu :
1. Inovasi pada sistem yang kompleks yang mana inovasi ini akan memakan waktu bertahuntahun dan biaya berjuta dolar dalam pelaksanaannya. - seperti jaringan komunikasi, sistem persenjataan, atau misi penjelajahan bulan, 2. Inovasi yang ditunjukkan dengan adanya suatu terobosan besar dan radikal dalam teknologi sehingga mengubah keseluruhan karakter dari suatu industri; 3. Inovasi bolt and nut innovation yaitu inovasi yang dilakukan perusahaan untuk bertahan secara umum dan bersaing. Inovasi jenis terakhir ini berupa perubahan teknologi secara kontinu tanpa mengubah karakter perusahaan. Inovasi jenis ini yang paling sering diimplementasikan di perusahaan.
Proses inovasi
bolt and nut innovation
Core concepts
Reinforced Unchanged Changed Incremental innovation Architectural innovation Overturned Modular innovation Radical innovation
Radical Innovation
Increasing
return or profit Profit can be used to do R&D again for continuous innovation
Product compatibility is an important aspect of product design and diffusion of innovated products in markets. Compatibility is normally maintained by establishing and using a common technological standard (standardized interface)
Computer compatibility (hardware & software) Container standard in transportation Cellular industry (BTS, cellphones )
De Vries (1999)
Standardisasi merupakan suatu pelumas bagi kalangan industri modern. Pada perusahaan, tujuan utama standardisasi terletak pada kontribusinya terhadap hasil bisnis. Sesuai atau tidaknya suatu hasil dengan standar tertentu dapat dibedakan melalui kesuksesan atau kegagalannya di pasaran. Tujuan utama standardisasi juga pada efektifitas serta efisiensi organisasi dimana bahwa standardisasi akan mengurangi biaya produk dan jasa. mengurangi peningkatan variasi produk dan prosedur dalam kehidupan manusia, memudahkan komunikasi, memberi kontribusi pada fungsi ekonomi keseluruhan, memberi kontribusi pada keamanan, kesehatan dan perlindungan hidup, melindungi kepentingan konsumen dan masyarakat, serta meniadakan hambatan dalam perdagangan.
Sudarwo (2007)
Standar produk mengatur karakteristik teknis suatu produk untuk berbagai konteks keperluan. Beberapa keperluan yang penting adalah varitas produk, kompatibilitas atau interoperabilitas antar produk, persyaratan minimum produk, dan peringkat kualitas produk.
Standards
positive impacts :
Economies of scale (mass production) Shorter time to market and reduced R&D cost Network effects Indirect network effects (complementary products) Fast technology adoption (reduce uncertainty) Learning effects (learn only one technology) Focusing on other competency Minimum quality and safety Increased variety (allow for modular innovation) Lowering the entry barriers (more new players)
Standards
negative impacts :
Diminishing innovativeness (dominant design) Compromise with low quality (because of high
standard)
Decrease in profits from innovation (many players) Restricted diffusion of technology (proprietary
standards)
Monopoly effects (kartel) Consumers wait-and-see stance (ie. UNIX) Switching cost (firm wait & see)
Even if a standard-setting body agrees on a standard, not all standards become winners in the market. Early and sizeable investment is necessary to try and get a standard to be accepted in the market. But, there is no guarantee the innovative product success in market However, whenever a new generation of standards is defined, a new market is created; thus giving an opportunity for new players
A standard can be the baseline for any innovation. The early standardization of products may encourage innovation in complementary technology and may promote subsequent incremental innovation designed to perfect the original technology Innovation is dynamic; standards control the dynamics of the innovation. Dynamic standardization is an important enabler of innovation Standards as state of the art give innovation a level playing field Development of new standards emerging new market and new systems (internet) Use of standards diffusing knowledge and application for technology Schilling (1999) : By providing information-hiding capacity, a standard interface allows a firm to make its technology compatible with that of other producers while still concealing the mechanics of the core functionality According to Allen (2000) standard required to : 1. Ensure the performance new products 2.Conformity new products 3. Safety new products According Kano (2000), classification of innovation as follows : 1. Systemic Innovation Example : mobile communication system 1G, 2G, 3G. 2. Standalone Innovation Example : cost and size reduction of mobile phones + improvement of design, performance, and function, battery life time
5.
Standard as public goods Systemic failure Market failure Economic benefits Induce competition between rivals in the private sectors
Governmental standard setting may induce competition between rivals in the private sector, and can fast track technology innovation.
Ie. Government role in regulate mobile phone by procuring the products by conducting or investing in research by seeding the development of resources or services by mediating in private sector competition through regulation By consolidating various interests and facilitating cooperation
TERIMA KASIH