Harnessing the Secret Structure of Innovation

Harnessing the Secret Structure of Innovation Description

In an era of low growth, companies need innovation more than ever. They can draw on a large body of theory and precedent. In practice, though, the authors say that innovation is more of an art than a science. They argue that there is an opportunity to view innovation not as the product of luck or extraordinary vision but as the result of a deliberate search process that companies can harness to construct an advantaged innovation strategy.The authors analyzed the mathematics of innovation as a search process for viable product designs across a universe of components. They then tested their insights using historical data from four real environments and concluded that companies can have an advantaged innovation strategy by using information about the unfolding process of innovation. But there isn't one superior strategy. The optimal strategy, they found, is both time-dependent and space-dependent. Based on their findings, the authors developed a five-step process for constructing an information-advantaged innovation strategy. Step 1. Choose your space: Where to play? It's not enough to analyze markets or anticipate customers'needs, the authors say. To innovate successfully, you also need to understand the structure of your innovation space. Step 2. Select your strategy: How to play? Measure the evolution of complexity in the space by analyzing the distribution of product sizes in terms of the number of unique components in products. If complexity is low and stable, the authors say, it's an indication that the space is still in its infancy, which argues for an impatient strategy. If complexity is high, then the space is maturing and a patient strategy will be the best approach. Step 3. Apply your strategy: How to execute? If you follow an impatient innovation strategy, the objective is to adopt or develop components that enable the company to bring relatively simple products to market quickly. Managers should ask themselves how they can be first. However, if the characteristics of your chosen innovation space imply that a patient strategy is more appropriate, your objective should instead be to maximize future innovation options. Step 4. Sense shifts and adapt: How to extract a switch signal? You need to monitor the complexity of your innovation space and compete on access to information in order to detect valuable strategy-switching signals before competitors. In their research, the authors found that a flattening in the increase of product complexity is a signal that it is time to switch from an impatient innovation strategy to a patient one. Step 5. Brace for disruptions: How to reset the clock? The promise of an information-enabled innovation strategy extends to disruption. Disruption, the authors note, suddenly resets and simplifies an innovation space by lowering product complexity. Disruptions don't just happen -they are created by innovators at the edge of a space who build simpler products that leverage components from a different space.

Case Description Harnessing the Secret Structure of Innovation

Strategic Managment Tools Used in Case Study Analysis of Harnessing the Secret Structure of Innovation

STEP 1. Problem Identification in Harnessing the Secret Structure of Innovation case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Harnessing the Secret Structure of Innovation case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Harnessing the Secret Structure of Innovation case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Harnessing the Secret Structure of Innovation case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Harnessing the Secret Structure of Innovation case study

STEP 6. Recommendations Harnessing the Secret Structure of Innovation case study

STEP 7. Basis of Recommendations for Harnessing the Secret Structure of Innovation case study

Case Analysis of Harnessing the Secret Structure of Innovation

Harnessing the Secret Structure of Innovation is a Harvard Business (HBR) Case Study on Innovation & Entrepreneurship , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Harnessing the Secret Structure of Innovation is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Harnessing the Secret Structure of Innovation case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Harnessing the Secret Structure of Innovation will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Harnessing the Secret Structure of Innovation case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Innovation & Entrepreneurship, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Harnessing the Secret Structure of Innovation, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Harnessing the Secret Structure of Innovation case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Innovation & Entrepreneurship Solutions

In the Texas Business School, Harnessing the Secret Structure of Innovation case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Harnessing the Secret Structure of Innovation

Step 1 – Problem Identification of Harnessing the Secret Structure of Innovation - Harvard Business School Case Study

The first step to solve HBR Harnessing the Secret Structure of Innovation case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Innovation Space is facing right now. Even though the problem statement is essentially – “Innovation & Entrepreneurship” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Innovation Space, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Harnessing the Secret Structure of Innovation.

The external environment analysis of Harnessing the Secret Structure of Innovation will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Harnessing the Secret Structure of Innovation case study. PESTEL analysis of " Harnessing the Secret Structure of Innovation" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Harnessing the Secret Structure of Innovation macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Harnessing the Secret Structure of Innovation

To do comprehensive PESTEL analysis of case study – Harnessing the Secret Structure of Innovation , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Harnessing the Secret Structure of Innovation

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Harnessing the Secret Structure of Innovation

Government policies have significant impact on the business environment of any country. The firm in “ Harnessing the Secret Structure of Innovation ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Innovation Space is operating, firms are required to store customer data within the premises of the country. Innovation Space needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Harnessing the Secret Structure of Innovation has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Innovation Space in case study Harnessing the Secret Structure of Innovation" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Innovation Space in case study “ Harnessing the Secret Structure of Innovation ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Innovation Space in case study “ Harnessing the Secret Structure of Innovation ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Harnessing the Secret Structure of Innovation

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Harnessing the Secret Structure of Innovation ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Innovation Space can compete against other competitors.

Government Scheme & Subsidies Impact on Harnessing the Secret Structure of Innovation

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Harnessing the Secret Structure of Innovation case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Harnessing the Secret Structure of Innovation

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Innovation Space needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Harnessing the Secret Structure of Innovation

Social Factors that Impact Harnessing the Secret Structure of Innovation

Technological Factors that Impact Harnessing the Secret Structure of Innovation

Environmental Factors that Impact Harnessing the Secret Structure of Innovation

Legal Factors that Impact Harnessing the Secret Structure of Innovation

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Harnessing the Secret Structure of Innovation case study. PESTEL analysis of " Harnessing the Secret Structure of Innovation" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Harnessing the Secret Structure of Innovation case study solution