Transilience map & analysis

1Challenge the future

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

Carlos HidalgoRadu IravaAman Kalsi

Ferry Ignasius


Content

1. Introduction

2. Transilience Map

3. Innovations

4. Users Inflluence

5. Management Relevance

6. Conclusions


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.


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


Transilience Map

• Consists of a composite transilience scales for each domain as the axes of a two-dimensional diagram

Technology/ProductionM

arke

ts/C

usto

mer

Conserve Existing Competence

Conserve Existing linkages

Disrupt/obsolete

Create new linkages


Technology/Production

Conserve/

entrench existing

competence

Disrupt/ obsolete existing

competence

Disrupt existing/ create new linkages

Conserve/ entrench existing l inkages


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


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


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


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


Users Influence

Sample InfluenceWelding Machine

+ Reliable performance- Vulnerable to change

Moving assembling line

+ Easy supervision & Inv. Management- Limited experience- Rigid & limited for other change

Finish Coating + Less training+ Less inventory- Rise minimum economics scale


Users Influence

Sample : 1.Ford model T Variety of machines - Versatility customers and users2.Engine Mounting Low Power – less vibration

Influence : Greater understandingsOther improvements


Users Influence

- New technical concept- Changes from market demand- Government policy

Sample : CHRYSLER1920 – 1939 : Focus on architecture & revolutionary innovation had passed Ford in Market share1940s : Focus on regular & niche innovation its market share decline1950-1960s : inefficient & not innovative

Influence : Reversal development


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.


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.

Transilience map & analysis

Business

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