2. Overview of Course Content 1 Innovation System Innovation Governance Organization of innovation Innovation Transformation and entrepreneurship Basic innovation concepts Introduction based on life cases Innovation Theory Dominant theory, Main issues and developments of innovation research Innovation Practice High tech entrepreneurship, Service innovation…… Prof. Dr. Bernhard Katzy 11/01/11
3. 2 Session 3: An Overview AGENDA Mini-Test Challenges when organizations face innovation Understanding organization Organizing innovation Readings for session 4 Prof. Dr. Bernhard Katzy 11/01/11
4. Session 3: reading engagement Mini-Test 3 Prof. Dr. Bernhard Katzy 11/01/11
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6. Challenges when organizations face innovation 5 Finance Model of functional organization HumanResources Operativecore Marketing Purchasing R & D Source: [Thompson] Prof. Dr. Bernhard Katzy 11/01/11
7. Challenges when organizations face innovation 6 An information perspective of organization designing Reduce the need for information processing Increase the information processing capability Investment in vertical information system Creation of slack resources Stable organization Rules andprograms Increasing planning targets Create information channels, standardize information……. Hierarchy Targets and goals Creation of Self-contained tasks Creation of Lateral relations Uncertainty Difference between information required and possessed Groups created based on markets, projects……. Direct contact, task force Teams ……. [Jay R. Galbraith 1974] Prof. Dr. Bernhard Katzy 11/01/11
8. Understanding organization 7 Traditional organization structure Comparison between organic structure and mechanistic one [Burns and Stalker 1961] 11/01/11 Prof. Dr. Bernhard Katzy
9. Understanding organization-Architecture 8 Organization architecture Informal Organization Task Formal Organization Arrangements Individual [ David A. Nadler and Michael L. Tushman, 1997] Prof. Dr. Bernhard Katzy 11/01/11
10. Understanding organization-Growth 9 Organization growth Growth throughCollaboration Size Growth throughCoordination Growth throughDelegation ???Crisis Growth throughDirection Crisis ofRed Tape Crisis of Control Growth throughCreativity Crisis ofAutonomy [Greiner Crisis and growth model] Crisis ofLeadership Phase / Time Prof. Dr. Bernhard Katzy 11/01/11
11. The Case of Siemens AG 10 Fax PBX Internet/ Email EDV Video [Siemens AG, 1999] Prof. Dr. Bernhard Katzy 11/01/11
12. Understanding organization-Culture 11 Linking innovation and culture summary from Charles A. O'Reilly and Michael L. Tushmans' idea Unpredictability INNOVATION Nonstandard Solution Risk Taking CREATIVITY IMPLEMENTATION Support for risk taking & change Effective group function Tolerance of mistakes Speed of action Prof. Dr. Bernhard Katzy 11/01/11
13. Organizing innovation - Ambidextrous organization 12 The case of ibm Prof. Dr. Bernhard Katzy 11/01/11
14. Organizing innovation - Virtual Organization 13 Virtual OrGANIZATION Network Project - Co-operation Management of dynamic Co-operations - Order Processing platform - stable - Dynamic [Schuh, Katzy, Eisen, 1997] Prof. Dr. Bernhard Katzy 11/01/11
15. Organizing innovation - Virtual Organization 14 Roles in Virtual organization Competence manager - brings partners competencies together - communication with customers Project manager - order processing - engineering Broker - acquisition - merchandising of the network competencies - balancing supply/ demand I / O I / O Auditor - financial control (neutral) - assessment I / O Manager in-/ outsourcing - coordination - communication with the project manager Network-coach - construction and maintenance of the infrastructure - acquisition of partners - rules for order processing [Katzy, Schuh, Millarg, 1996] Prof. Dr. Bernhard Katzy 11/01/11
16. Organizing innovation – Virtual organization 15 When is virtual virtuous Vertical Integration Market: uncertainty and high risk high incentives Fusion JV Cooperation Supplier Contracts Hierarchy: certainty and low risks low incentives Market Transactions Integration [Chesbrough, Teece, 1996] Prof. Dr. Bernhard Katzy 11/01/11
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18. Article 2: Anna L. Saxenian. Comment on Kenney and von BURG, "Technology, Entrepreneurship and Path dependence: Industrial Clustering in Silicon Valley and Route 128". Industrial and corporate change, Volume8, Number1, 1999.16 11/01/11 Prof. Dr. Bernhard Katzy
