1. Innovation: Mapping the winds
of creative destruction
W. Abernathy & K. Clark
Carlos Hidalgo
Radu Irava
Aman Kalsi
Ferry Ignasius
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2. Content
1. Introduction
2. Transilience Map
3. Innovations
4. Users Inflluence
5. Management Relevance
6. Conclusions
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3. 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.
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4. 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
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5. Transilience Map
• Consists of a composite transilience scales for each domain
as the axes of a two-dimensional diagram
Conserve Existing
Competence
Markets/Customer
Create new
linkages
Technology/Production
Disrupt/obsolete
Conserve Existing
linkages
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6. Disrupt existing/ create new linkages
Conserve
/
entrench
existing
competen
ce
Disrupt/
obsolete
Technology/Production
existing
competen
ce
Conserve/ entrench existing linkages
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7. 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
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8. 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
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9. 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
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10. 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
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11. Users Influence
Sample
Influence
Welding
Machine
Moving
assembling line
+ Reliable performance
- Vulnerable to change
+ Easy supervision & Inv. Management
- Limited experience
- Rigid & limited for other change
+ Less training
+ Less inventory
- Rise minimum economics scale
Finish Coating
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12. Users Influence
Sample :
1.Ford model T
Variety of machines - Versatility customers and users
2.Engine Mounting
Low Power – less vibration
Influence :
Greater understandings
Other improvements
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13. Users Influence
-
New technical concept
Changes from market demand
Government policy
Sample : CHRYSLER
1920 – 1939
: Focus on architecture & revolutionary innovation
had passed Ford in Market share
1940s
: Focus on regular & niche innovation
its market share decline
1950-1960s
: inefficient & not innovative
Influence : Reversal development
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14. Managerial Implication
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•
•
•
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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.
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15. 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.
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