Similar to ETOP

Research
Never permanent
Development
Continously eroded by competitors based upon internal factors -
Competitive advantage SAP - Strategic Advantage Profile rankedOpportunities and Threaths for each production
Temporary advantage
technology & IT Module 6 B marketing
erodes faster & faster
finance
Avoid conflict
constant % of sales / cost? value chain connection
Misallocation of resources
How much to spend
High R cost Low D cost economies of scale
Spill-over effect sunk cost
Big joint production in R & D
problem of resource allocation barries to entry
Research and Innovation Result is prototype Strategic assets legislation
Which criteria for id pot product experience effects
Ideas come sporadic & unpredictable market position
Must consider opp.cost of R&I expenditure Sustainable?
reputation
Definition of Competitive architecture
measure Research expend.
advantage Distinctive capabilities Internal strength
Past R expend Core competence
Innovation
% of sales / cost expend Indicative factors of Research expend
Spill over effects
architecture
power base causal ambiguity
core competence
Awareness of R & I critical for success Protection
will imitation work?
uncertain imitability
CTO - max quality
CFO. - limit budget
employees
Internal
CMO - get product to market
CEO - Alt use of resources Strategic architecture Unique
suppliers/customer
group objetives differ relational contracts with: External
last $ on dev < last on profit
marginal analysis
can marginal benefit be estimated? related activities
networks
Communicate & compromise
ID factors
Sensitivity analysis
NPV, Risk & uncertainity etc. Potential access to markets
Screening ID core through test contribution to perceived customer benefit
Incentives
1. Invention Development Short time when difficult to imitate
product from prototype rare max 5/6 per compay
potential 2. Prototype core competence lead to core products

Core competence goals, culture, org design

priority Competence systems
protection
3. Patent
good routines
Innovation process 3 levels Distinctive capabilities
expense Internal analysis R & I & D
4. Development
Mngt & comp advantage Core output
resources
competitor reaction
market share
Positioning pool of experience, knowledge & systems
5. Launch

Each stage managed effective Link

between stage must be effective ID likely benefits
Where is synergy effect
Questions
Must produce at competitive cost Little emperical evidence Wishful thinking What evidence exist
One period ahead
Hiring / firing cost Corp mngt.
Reactive Synergy
learning lost Economies of scale
vertical integration
PLC Resource management Components
2 approaches Capacity utilisation
prod launch periods
Joint production
select planning horizon Proactive
Innovative stimulus
dev resource plan
implications for marketing strategy
lack of positive evidence
mngt risk?
Power culture minimize risk

Role culture Diversification value destruction?

Incentives economies of scope
task culture HRM
personal culture add value through parenting
Culture problem - principal/ agent problem? synergy

economies of scale in-bound logistics

benefits
merket dicipline operations
primary activities out-bound logistics
different priorities Buy?
marketing & sales
Information leakages Costs
service
transaction cost
procurement
avoid paying the cost Vertical integration
Value chain analysis tech. development
avoid paying profit margin Incorrect arguments! support activities
HRM
avoid high prices - peak demand
make? mngt. systems
more powerful structure
value to the ultimate user
balance competitive & cooperative Correct arguments
Incentive to get things right unique to company
formidable principal/agent problem maybe in the linkage
ID comp advantage sustainable comp advantage
Strength / Weakness in comp setting

Mod 6b.mmap - 30/11/2011 - - - prepared by Carl Olav Staff / Rune Fjellvang

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