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Notes podcasts Innovation Strategies of Firms and Entrepreneurs (GEO3-2221)
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Notes from all the podcasts that were available during the course Innovation Strategies of Firms and Entrepreneurs.
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Aantekeningen podcastsPodcast 1 - Try to know our names
Outline → 4 types of interaction moments (podcasts, lectures (online in Teams), tutorial
(physical) & pubquiz) → 4 types of grades → submitting questions before lecture to Kelvin Breuer
before Tuesday 17:00 (read your own question out loud - people have to turn on camera) →
tutorials are interactive → make pubquiz with your group and you compete with other groups →
tutorial assignments in form of slidedoc → more professional (examples on BB) → slidedoc
should be self-explanatory (all info should be on slides), structured and visually attractive, most
important info should stand out → business plan → you get a grade for your peerfeedback → at
last you have to pitch your business plan → for both parts
are rubrics → have to do market research and pilot that
among users (through surveys FEX) → exam will be
physical on campus → everything in the required reading
list is content for the exam.
Innovation Strategies of Firms and Entrepreneurs: builds
on: Introduction Technology and Innovation – Economics
of Technology and Innovation – Organisation Theories →
focus on innovation processes within the firm.
Innovation has to be actively managed: “Innovation is the
specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a
different business or service. It is capable of being presented as a discipline, capable of being
learned, capable of being practiced”.
Choice of strategy (& luck) are more important than industry: • choice of industry 8.35%, • choice
of strategy 46.4%, • parent company 0.8%, • unexplained (e.g. luck) 44.5%.
Podcast 2 - You can’t always get what you want
Start-ups = young innovative enterprises that are often seen to contribute to economic growth
and to help solve societal challenges → also known as new technology-based firms.
→ entrepreneurs are people behind the start-up (Steve Jobs for Apple) → or team of people →
many entrepreneurs are tech-focused (narrow perspective).
Business incubators = programs and organizations that primarily support new technology-based
startups → others distinguish between incubators,
accelerators, venture builders and some form of supporting
co-working spaces → they mostly do the same → the
difference is mostly marketing.
→ resources help start-ups to survive, grow and compete →
incubator resources (see picture left) → physical and financial
capital are tangible resources → knowledge, social capital
and legitimacy are intangible resources → it is unknown if
incubators contribute to start-up succes, because:
- Resources offered by incubutors are sometimes of
poor quality and do not fit the needs of start-ups.
- Start-up entrepreneurs might not know what resources they need or how to use them.
→ initially tangible resources are deemed important → later start-ups realize that intangible
resources are more important → this aligns with the view of incubator staff.
,Resources and their quality did not always meet the needs of the start-ups → start-ups are often
focused on technology → they are often “unconsciously incompetent” → short-term oriented
and focused on day-to-day business → unwilling to leave their comfort zone.
Implications for incubators:
- For inexperienced “incompetent” entrepreneurs: strong intervention approach =
aggressive coaching → mandatory participation → fixed mile stones, recruit additional
external entrepreneurs → FEX. Google was founded by PhD students, but the major
growth was done by an outsider (succesful entrepreneurs have to give up control).
- For experienced “competent” entrepreneurs: laissez-faire approach = demand driven
support.
Podcast 3 - Too many types of innovation
Schumpeter: product innovation = about what is produced (can be tangible (material good) and
intangible (service)) → process innovation = how to produce it (machines or technological).
→ FEX. PDI: the wheel/phone/cars → PCI: scrum/agile (software process innovation) → when a
machine is sold to another company it is a product innovation → when they use it themselves it
improves their process and it is process innovation.
Innovation can be classified based on their effects on the market: an innovation can cause:
- continuous small incremental changes; step-by-step approach of gradually improving
existing products or processes.
- discontinuous radical innovations; change the entire order of things, making obsolete the
old ways and perhaps sending entire businesses into the ditch of history.
- massive shifts in some pervasive general purpose technology (GPT), sometimes called
techno-economic paradigms → this changes the whole paradigm of how our society is
made up → broader than one new product, but a tech that has worldwide influence →
this GPT has influence on other innovations → FEX. electricity and the internet.
Can distinguish product and process innovations based on the scope of the change: there are...
- changes at the level of the innovative product or process; changes in technological
characteristics, functions and quality.
- changes induced by the innovation at the level of the innovating agent; change in
competencies, organizational structures or the market position.
- changes induced by the innovation throughout the value chain; go outside the innovating
agent, higher, systemic level of change → FEX. for users’
competencies, or supplier involvement.
4 types of technological change: see picture right.
Modular innovation = the core concepts of components within the
product system design are overturned, so they are very new, but the
architecture is not → FEX. electric engine in a car, one component is
new, but the architecture stays the same, because the engine is still
connected to the same other components and it still looks like a car
→ outside architecture stays the same, but internal A does not.
Architectural innovation = rearragement of the ways in which
components relate to each other within a product system design → the way components are put
together changes → FEX. motorcycles with 3 wheels, nothing on it is new, only the way the
components are placed together.
Dimensions of ‘innovation space’:
● product – changes in the things (products/services) which an organization offers.
, ● process – changes in the ways in which they are created and delivered.
● position – changes in the context in which the products/services are introduced → it
changes the meaning of the product in the eyes of the customer (material product or
organizational structure) → can also be a new product that is introduced to a new market
(FEX. the electric bike was first for elderly, while now it is marketed for the ordinary
person to commute between work and home).
● paradigm – changes in the underlying mental & business models which frame what the
organization does.
These categories have fuzzy boundaries
and they are not mutually exclusive →
firms can pursure all or a few at the
same time.
Different kinds of paradigm innovation
→ Francis and Bessant talk about a different kind of paradigm than Meeus et al.
Disruptive innovation = new entrants challenge incumbents, often despite inferior resources →
new market is overlooked or ignored by incumbents → after some time, disruptive innovation
improves and threatens established markets and products → to withstand disruptive innovation
incumbents need to adapt their organization and be in touch with customer needs.
→ firms can respond effectively on disruptive innovation by looking at their business strategy →
if you wanna be creative and keep up with competitors, you have to destroy part of your
business.
→ difference with radical innovation: for disruptive innovation the key to organizational renewal
lie in the needs of the customers, whereas for radical innovation this lies in the capabilities of the
incumbent firm itself.
Podcast 4 - The everchanging business model
A business model is: management’s hypothesis about: – What do customers want? – How do they
want it? – How can the enterprise organise itself to best meet those needs? – How do you get
paid for doing so? – How do you make a profit?
→ defining a manner in which the enterprise delivers value to customers and ties its customers
to pay for value and converts these payments into profit.
Business models are important, because they make explicit and provide evidence for how a
business creates and delivers value to customers → without a well-developed business model,
innovators will fail to deliver or to capture value from their innovations.
→ a business model is strongly related to strategy → a business model is part of the competitive
advantage of firms → business models get changed a lot.
Freemium model = give the basics away for free, but for more services you have to pay.
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