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Innovation: Mapping the winds
of creative destruction
W. Abernathy & K. Clark

Carlos Hidalgo
Radu Irava
Aman Kalsi
Ferry ...
Content
1. Introduction
2. Transilience Map
3. Innovations
4. Users Inflluence
5. Management Relevance
6. Conclusions

Cha...
Introduction
• Conservative Scale
• Innovations serve to enhance the value or applicability of the
firm’s existing compete...
Introduction
• Technology/Production
• Design
• Production systems
• Skills (labor, mangerial,
technical)
• Materials
• Ko...
Transilience Map
• Consists of a composite transilience scales for each domain
as the axes of a two-dimensional diagram

C...
Disrupt existing/ create new linkages

Conserve
/
entrench
existing
competen
ce

Disrupt/
obsolete
Technology/Production
e...
Architectural
• Creates new industries (ex: radio) / Reforms old industries
(ex: photo typesetting)
• Opens new markets
• ...
Market Niche
•
•
•
•
•
•
•

New market opportunities through existing technology
Conserve and strengthen established desig...
Regular
•
•
•
•
•
•

Builds on established technology and existing customers
Almost invisible, incremental change
Ex: Rock...
Revolutionary
• Disrupts established technology but applied to existing
markets
• Ex: Vacuum tubes, Mechanical calculators...
Users Influence

Sample

Influence

Welding
Machine
Moving
assembling line

+ Reliable performance
- Vulnerable to change
...
Users Influence

Sample :
1.Ford model T
Variety of machines - Versatility customers and users
2.Engine Mounting
Low Power...
Users Influence
-

New technical concept
Changes from market demand
Government policy

Sample : CHRYSLER
1920 – 1939
: Foc...
Managerial Implication
•

•

•

•

•

New way of assessing different kinds of innovation is
'Transilience map‘
Architectur...
Conclusion
Transilience map requires further study.
The need to examine the impact of innovation on market
structure durin...
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Transilience map & analysis

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Transilience map & analysis

  1. 1. Innovation: Mapping the winds of creative destruction W. Abernathy & K. Clark Carlos Hidalgo Radu Irava Aman Kalsi Ferry Ignasius Challenge the future 1
  2. 2. Content 1. Introduction 2. Transilience Map 3. Innovations 4. Users Inflluence 5. Management Relevance 6. Conclusions Challenge the future 2
  3. 3. Introduction • Conservative Scale • Innovations serve to enhance the value or applicability of the firm’s existing competence. • Radical Scale • The effect of innovation is disruptive and destructive. Challenge the future 3
  4. 4. Introduction • Technology/Production • Design • Production systems • Skills (labor, mangerial, technical) • Materials • Kowledge and experience • Market/Customer • • • • • Customer Relations Customer Applications Channels of distribution Customer knowledge Modes of commuication Challenge the future 4
  5. 5. Transilience Map • Consists of a composite transilience scales for each domain as the axes of a two-dimensional diagram Conserve Existing Competence Markets/Customer Create new linkages Technology/Production Disrupt/obsolete Conserve Existing linkages Challenge the future 5
  6. 6. Disrupt existing/ create new linkages Conserve / entrench existing competen ce Disrupt/ obsolete Technology/Production existing competen ce Conserve/ entrench existing linkages Challenge the future 6
  7. 7. Architectural • Creates new industries (ex: radio) / Reforms old industries (ex: photo typesetting) • Opens new markets • Defines basic configuration of product and process • Establishes technical and marketing agendas • Reveals the architecture and competition occurs • Ex: flywheel magneto, vanadium stell alloy Challenge the future 7
  8. 8. Market Niche • • • • • • • New market opportunities through existing technology Conserve and strengthen established designs “Sales maximization” (Utterback) Improved applicability Insuffiecient for long term advantage Timing and quick reaction are very important Ex: Ford Model A, fashion apparel, Sony Walkman Challenge the future 8
  9. 9. Regular • • • • • • Builds on established technology and existing customers Almost invisible, incremental change Ex: Rocket engines, Computers, Synthetic fibers Dramatic effect on product cost and performance Takes place over a significant period of time Ex: Model T: $1200 -> $290 (18 years), capital increased Challenge the future 9
  10. 10. Revolutionary • Disrupts established technology but applied to existing markets • Ex: Vacuum tubes, Mechanical calculators • Duel Ford (mass production) – GM(new concepts) • Ex: Closed steel body • New technology, higher costs • Not all have profound impact: fail market needs, production problems, poorly timed Challenge the future 10
  11. 11. Users Influence Sample Influence Welding Machine Moving assembling line + Reliable performance - Vulnerable to change + Easy supervision & Inv. Management - Limited experience - Rigid & limited for other change + Less training + Less inventory - Rise minimum economics scale Finish Coating Challenge the future 11
  12. 12. Users Influence Sample : 1.Ford model T Variety of machines - Versatility customers and users 2.Engine Mounting Low Power – less vibration Influence : Greater understandings Other improvements Challenge the future 12
  13. 13. Users Influence - New technical concept Changes from market demand Government policy Sample : CHRYSLER 1920 – 1939 : Focus on architecture & revolutionary innovation had passed Ford in Market share 1940s : Focus on regular & niche innovation its market share decline 1950-1960s : inefficient & not innovative Influence : Reversal development Challenge the future 13
  14. 14. Managerial Implication • • • • • New way of assessing different kinds of innovation is 'Transilience map‘ Architectural innovation – Creative synthesis about the user needs and new technological needs. Niche Creation - Timing is the essence of management. Regular Mode - Methodical planning and consistency to ensure technological progress, engineering improvements and continued process development. Revolutionary Innovation - There needs to be a technological push. Challenge the future 14
  15. 15. Conclusion Transilience map requires further study. The need to examine the impact of innovation on market structure during periods of transition. A balance between different innovations at the same firm. Challenge the future 15

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    Feb. 20, 2016

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