Transcript Mastering the Dynamics of Innovation-DEG-3

Mastering the Dynamics of Innovation
by James M. Utterback
Summary by David E. Goldberg
University of Illinois at Urbana-Champaign
Text
• Utterback, J. M. (1996).
Mastering the dynamics of
innovation. Boston, MA:
Harvard Business School
Press.
• James Utterback is the
David J. McGrath Jr. Prof.
of Management and
Innovation and the Chair
of the MIT Management
of Technology Program
Typewriter Innovation
• Sholes typewriter (1868) leads to
Remington No. 1. 1873.
• New workers: typists, pay high work
conditions good.
• Wagner design: front and center keys led to
Underwood.
• IBM purchases Electrostatic typewriters in
1933.
Word Processors and PCs
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1964 Magnetic tape IBM Selectric.
1970s standalone word processors
Altair 8800;
1977 Apple II
IBM PC 1981
Lessons from Typewriters and Such
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New innovations from old capabilities
Emergence of dominant design
Shifting ecology of firms.
Waves of technological change
Changing leadership at breakpoints in
technology.
• Invasion of alien technology
What is a Dominant Design?
• New product formed synthesized from
technological innovations produced
independently.
• Embodies requirements of many classes of
user.
• Collateral assets or co-specialized assets
help enforce dominant design (IBM PC).
Industry Structure
• Innovation does not come from large
dominant player.
• Small number of players initially, then
larger number, then reduction.
• Shift from product innovation to process
innovation.
Edison and the Light Bulb
• Outsiders as innovators.
• Social factors need to be considered
(terminology: burners and mains for
electric).
• Defensive innovation by established
technology.