the concepts related to the changing nature of innovation, Business & Finance Assignment Homework Help

  

500 word answers to each of the following questions.  I’ve attached the textbook and highlighted in bold below the chapter references for each of the questions.  Please include a citation from the book in each answer.  For question 3, a domestic company would be one that is US based.  1) Choose a technology, and using the concepts related to the changing nature of innovation and how knowledge is increasingly dispersed in Chapter 1 and Appendices One and Two of Managing Global Innovation (Doz and Wilson, 2012), describe how global innovation is changing for this particular technology.2) Choose a new international market for a company and discuss the pros and cons of using attracting, foraying, and experiencing from Chapter 2 of Managing Global Innovation (Doz and Wilson, 2012) to enter this new market for this particular company.3) Choose a domestic company (one that has yet to expand globally) and combine the locational approaches of substitution, complementarity, and discovery from Chapter 3 of Managing Global Innovation (Doz and Wilson, 2012) to propose a multinational business structure and approach for this particular company.
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foreword by cesare mainardi,
ceo, booz & company
Man agin g
Global
Inn ovation
fr amewor ks
for
in teg r ating
capabi liti es
ar ou nd
the wor ld
Yves L. Doz Keeley Wilson
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h a r v a r d b uCopying
s i n e sorsposting
r e v isi eanw infringement
p r e s s of copyright.
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MANAGING
GLOBAL
INNOVATION
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MANAGING
GLOBAL
INNOVATION
FRAMEWORKS
for
I N T E G R AT I NG
C A PA B I L I T I E S
AROUND
the WORLD
Y V ES L . DOZ   K E E L E Y W IL S ON
H A R VA R D B U S I N E S S R E V I E W P R E S S
Boston, Massachusetts
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Copyright 2012 Harvard Business School Publishing Corporation
All rights reserved
                 
No part of this publication may be reproduced, stored in or introduced into
a ­retrieval system, or transmitted, in any form, or by any means (electronic,
­mechanical, photocopying, recording, or otherwise), without the prior ­permission
of the publisher. Requests for permission should be directed to
permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business
School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.
Library of Congress Cataloging-in-Publication Data
Doz, Yves L.
Managing global innovation : frameworks for integrating capabilities around the
world / Yves L. Doz, Keeley Wilson.
   p. cm.
ISBN 978-1-4221-2589-2 (alk. paper)
1. Technological innovations–Management. 2. Diffusion of innovations–­
Management. 3. International business enterprises–Management. I. Wilson,
Keeley. II. Title.
HD45.D679 2012
658.4’063–dc23
2012012904
Find more digital content or join the discussion on www.hbr.org.
The web addresses referenced and linked in this book were live and
correct at the time of the book’s publication but may be subject to change.
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CONTENTS
Foreword xi
Preface xv
Acknowledgments xxi
Part I
Managing Global Innovation
The Challenge
1. The Innovation Challenge
3
Part II
Optimizing the Innovation Footprint
2. The Optimized Footprint
25
3. How a Site Creates Value and Why the
Size of the Network Matters
55
Part III
Optimizing Communication and Receptivity
Integrating the Network
4. The Barriers to Integration
5. Improving Receptivity and Communication
93
107
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CONTENTS
Part IV
Optimizing Collaboration
Succeeding Globally
6. Organizing for Global Innovation Projects
139
7. Collaborative Innovation
171
8. Globally Integrated Innovation
201
Appendix 1:
   The Nature of Innovation Is Changing
211
Appendix 2:
   Knowledge Is Increasingly Dispersed
219
Notes 227
Index 233
About the Authors
249
vi
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TABLE OF SIDEBARS
Chapter 1
Tata Communications: A Globally Integrated Model 10
Chapter 2
HP Labs India: Experiencing via Immersion
in a New Context 38
Snecma: Foraying via Learning Expeditions 42
Nokia: Attracting Leading-Edge Research 50
Chapter 3
John F. Welch Technology Center:
From Substitution to Complementarity in India 62
Novartis Institute for Tropical Diseases:
Learning from a New Location 72
Fuji Xerox: From Market Access Joint Venture to
Key Innovation Hub 79
Chapter 5
Xerox: From a Culture of Secrecy to Open Knowledge
Sharing and Reuse 108
Synopsys: Connecting Dispersed Teams 116
vi i
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TA B L E O F S I D E B A R S
Siemens: DFSS, a Tool to Impose a Common Language
120
GSK Affymax: An Approach for Integrating
Complex Knowledge 129
Chapter 6
Apcantes: A Troubled Global Project
142
ATV-71: A Successful Dispersed Project
154
Sapphire: Strong Project Management Delivering Success 162
Chapter 7
IBM’s Collaboratories
178
Boeing: From Dreamliner to Nightmare Project 183
PixTech: From Great Potential to Downfall
188
Intel: Building the WiMAX Innovation Ecosystem
194
vi ii
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In Memoriam
To Gunnar, Sumantra, and C. K.
They paved our way.
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FOREWORD
This book explains how to conceive, build, and hone a global
innovation capability that is enduring, practical, and rooted in
the realities of both global competition and a company’s particular approach to its market. Yves Doz and Keeley Wilson
have brought their considerable expertise to bear on a subject
of fundamental strategic importance, both rich in promise and
perilous in its potential for misinterpretation and misapplication. Innovation has become such an all-encompassing concept
and powerful driver of modern business strategy that company
leaders lose focus when asked to define innovation and how they
intend to achieve it. Globalization only adds to the challenge.
Along come Doz and Wilson with a blueprint for organizing,
building, and managing a global innovation capability, from
design through execution. And they offer seasoned counsel on
how to tailor this blueprint to the parameters of a particular
industry and the priorities of a given company.
Just as we do at Booz & Company, the authors start with
focus. It is our shared belief that companies create long-term
competitive advantage by recognizing, developing, and continuously improving a limited set of interrelated winning capabilities. Assets and market positions are transient. In contrast,
core capabilities are sustainable and defensible in the long
term. In the new world context of open market access and dispersed knowledge, managing global innovation will become an
integral component in many companies’ systems for growing
xi
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F O R E W O R D
winning capabilities. To continuously create and capture value,
­companies must not only know how to design and develop a
valuable and flexible innovation footprint, but also learn to integrate worldwide knowledge and experience through effective
processes and systems driven by strong leadership.
The notion that Doz and Wilson are onto something is not
news to us—Booz & Company has worked with both authors
for almost a decade, developing insights on innovation and
how it has taken shape around the world, market by market. In
2004 we undertook a study of global innovation networks with
INSEAD that provided a preview of some of the trends explored
in this book, and we have continued to participate in their work
on innovation regimes and global innovation in specific industries, such as telecom and pharmaceuticals.
Looking back just a few years, it is remarkable how rapidly our
early findings have taken hold and become key issues for companies around the world, both in developed and developing economies. Our early study focused on companies from developed
economies that were expanding their innovation footprints into
China and India. In fact, that is where most of their incremental R&D investment was going. Now, we’re observing a turn in
the tide, as companies in China and India are investing their
R&D and innovation currency in the United States, Europe, and
even Japan. India’s Tata Motors acquired not only brand equity,
but also technology and a European automotive R&D footprint
by acquiring Jaguar and Land Rover. China’s SANY Group has
opened R&D centers in Germany and the United States. Huawei
Technologies has an extensive global R&D footprint and a $4.5
billion global R&D budget.
All of these companies now face the challenge of managing innovation on a truly global basis—identifying, accessing,
xii
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FO R EWO R D
stimulating, and integrating the best ideas and capabilities from
around the world into innovations that will serve world markets
while at the same time pioneering new ways of collaborating
both inside and outside company walls. It’s a daunting challenge, and few companies have found a winning formula.
Senior leaders need practical suggestions to find the proper
architecture for implementing global innovation networks and
meeting the day-to-day challenges of crossing borders in the
development of ideas into products and services. This book is
for corporate leaders but also for frontline innovators, and not
only in developed economies, but also in China, India, Brazil,
Indonesia, and other developing economies now spreading their
wings on the global stage. It combines an understanding of the
fundamental drivers of success in managing global innovation
with practical strategies for building a productive and enduring
innovation capability. It describes a long journey that requires
a set of guiding concepts and principles, as well as an architecture of systems and processes. Doz and Wilson provide both in
this expert road map for building the capability to manage global
innovation.
—Cesare Mainardi
Chief Executive Officer
Booz & Company
xi i i
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PREFACE
In an essay arguing for a shift toward a more globally ­distributed
and integrated approach to innovation, Sam Palmisano, the
highly regarded chairman (and recently retired CEO) of IBM,
cautioned, “As the twin imperatives of [global] integration and
innovation render the old MNCs’ networks of national hubs
­inefficient and even redundant, it is becoming increasingly clear
that the twentieth-century corporate model is no longer optimal for innovation.”1 Similarly, at GE, Jeff Immelt has put the
globalization of innovation at the center of his strategic agenda.
During Henning Kagermann’s tenure as CEO of SAP, when
asked by one of the authors what he considered his company’s
most difficult strategic challenges, he answered, “To build a
global innovation network.” Along with many other managers,
these executives have all recognized that over the past decade,
there has been a growing need for radical change in the way their
firms innovate.
As with any radical and systemic change, embracing global
innovation will be difficult. It requires new structures, processes, tools, capabilities, and perhaps most important, new
mind-sets. Our goal in writing this book, which is the result of
more than a decade of research, is to give executives and managers from companies—both large and small, established and
new—a guide to achieving that change and repositioning their
­companies to compete in the era of global innovation.
xv
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P R E F A CE
To explain the origins of this book requires us to go back to
2001, when Yves Doz and two colleagues at INSEAD, Jose Santos
and Peter Williamson, published From Global to Metanational.2
This was a manifesto for highly dispersed innovation, based on a
few pioneering firms that were tapping the world for new knowledge. Although From Global to Metanational described what this
new form of innovation looked like, it didn’t explain how firms
could build the structures, mechanisms, and processes needed
to undertake dispersed innovation.
The magnitude of the challenge facing firms in building and
managing a global innovation capability began to emerge in
the fall of 2002 at a forum we organized at INSEAD for senior
executives from leading global companies. By the end of the
three-day event, we were left in no doubt of the genuine need
for a deeper understanding of how firms could become global
innovators.
Over subsequent years, our quest to understand how companies can build an effective innovation network and manage
global innovation led us to conduct field research at forty-seven
companies around the world, including Citibank, HP, Hitachi,
IBM, Infosys, Intel, LG Electronics, Novartis, Philips, Samsung,
Schneider Electric, Siemens, Toshiba, Vodafone, and Xerox.
In 2004, with our field research ongoing, we teamed up with
Booz & Company (then Booz Allen Hamilton) in a joint research
agenda to gain a better understanding of global innovation footprints. We jointly conducted in-depth field research into innovation footprints in a number of sectors, but the centerpiece of
our collaboration was a survey, “Innovation: Is Global the Way
Forward?” This survey was completed by 186 companies from
19 countries and 17 different sectors, with an annual innovation
spend of more than U.S.$78 billion.3 Throughout our research
and theory-building process, we have been able to hold various
x vi
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P R EFAC E
symposia bringing together executives from global companies
as sounding boards and intellectual sparring partners.
In the past few years, the relevance and urgency of successfully implementing global innovation has intensified and the
need for a book addressing the “how” aspect has become urgent.
This book draws together the findings, observations, and managerial lessons arising from our research. Our hope is that it provides stimulating ideas as well as practical guidance for senior
executives to strategically approach the configuration and
deployment of innovation activities. For managers working in
innovation-related functions, we have provided the frameworks
and tools to support the coordination of global innovation and
to maximize the benefits and minimize the costs of managing a
global innovation network. Although we researched dispersed
service, business model, and product innovations, we found the
same lessons holding true for all. For illustrative purposes in the
book we have mainly used the latter, simply because the innovation is more tangible and therefore clearer for descriptive purposes.
The book is divided into four parts based on the core “managing global innovation” (MGI) framework. In part I, chapter 1,
“The Innovation Challenge,” we introduce the fundamental
conundrum that innovating with complex knowledge is best
suited to a colocated environment (the traditional model of
innovation), but the complex knowledge needed for innovation
is increasingly dispersed, so global innovation needs to tap into
this diversity. We put forward the MGI framework as the solution by providing a model for globally integrated innovation. In
the final part of the chapter, we look at the evolution of innovation footprints over the past three decades and reveal that,
with key capabilities remaining at home, poor network integration mechanisms and processes, and adherence to short-term
xvi i
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P R E F A CE
cost-saving strategies, most companies are failing to build
­effective and efficient innovation networks.
Part II focuses on the frameworks a company needs to optimize its innovation footprints. Agility and flexibility are key,
given increasing knowledge dispersion, shorter cycle times,
and the need for greater efficiency. An innovation network of
traditional bricks-and-mortar sites is not only expensive to
run, but is never going to deliver adequate agility and flexibility. In c­ hapter 2, “The Optimized Footprint,” we suggest a new
approach to building a global innovation network, where a company uses bricks-and-mortar sites for accessing and absorbing
complex, systemic knowledge. If the knowledge at a location
is either ­codified or embedded, we describe alternative, more
flexible ways of accessing that knowledge from a distance or via
learning expeditions.
An optimized footprint still needs bricks-and-mortar sites,
though fewer. In chapter 3, “How a Site Creates Value and
Why the Size of the Network Matters,” we introduce a dynamic
framework for organizing bricks-and-mortar sites for value creation and assessing the usefulness of new locations for increasing productivity, contributing differentiated knowledge, or
seeking new opportunities for radical innovation. The optimal
size of a bricks-and-mortar network alters, depending on a
range of factors specific to individual companies. In the second
part of the chapter, we explain how strategic choices, capability
constraints, legacy, and corporate culture all play a role in determining the optimal size of a physical network for creating value.
In part III, we move from focusing on the configuration of innov …
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