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Strategic alignment of innovation to Business 9789086860562

Strategic alignment of innovation to Business

Balancing technology and markets in technology-based Industries

ISBN-10: 9086860567
ISBN-13: 9789086860562
AUTHOR:
PUBLISHER: Wageningen Academic Publishers
Also available at Amazon.com
Note: Not guaranteed to come with supplemental materials (access codes, CDs, DVDs)
Product Description: This book addresses the crucial question for innovative prospector companies of how to bridge the gap between exploration and exploitation. Whereas exploration deals with the search for new ideas and opportunities, exploitation is about incrementally moving the performance bar a little bit higher. Finding the right balance between exploration and exploitation is essential for the long term survival in today's highly dynamic business environments.In a cross-industry study of ten large, multinational prospector companies, which are world leaders in their respective industries, it was discovered that the `industry clockspeed?, the length between the subsequent product generations, plays an essential role in bridging this gap. The product generation life cycle (PGLC) typically ranged from just several months in short life cycle industries (SLCIs), such as electronics and the mobile phone industry, to (more than) 10 years in long life cycle industries (LLCIs), such as aerospace and pharmaceutics. Our data indicate that companies operating in SLCIs face major problems in maintaining the long term knowledge base of their firms, whereas companies in LLCIs tend to have problems in aligning their innovation strategy to the short term business needs. To investigate the dynamics of strategic alignment, in one of the LLCI companies, a multinational supplier of industrial components, a six-year longitudinal study was conducted. Here our data indicate that finding a funding structure that effectively balances exploration and exploitation, combined with regular structured feedback between the exploration and exploitation function is needed to maintain long term strategic alignment.CTOs and innovation managers can use this book by first establishing the industry clockspeed(s) in their respective industries or product range(s) and then benchmark their innovation processes to those of the first class (SLCI or LLCI) prospector companies included in this book.

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PUBLICATION DATE:
174
CATEGORY: Social Science, Technology & Engineering
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