mgmt 352 innovation ecosystem

first mover advantage

above average returns until other competitors respond effectively, start down the learning curve earlier, opportunity to gain customer loyalty, opportunity to set industry standard

first mover disadvantage

uncertainty about technology or demand, high development costs, risk of adapting a losing standard 

moving second advantage

reduction in tech or demand uncertainty, market research to improve satisfying customer needs, learn from the first mover’s successes and shortcomings

moving second disadvantages

switching costs may make taking customers difficult, brand loyalty/customer familiarity, miss the opportunity to set standards

create separate innovation units

allowing disruptive projects to operate independently

discovery-driven planning

christensen advocates iterative experimentation where assumptions are systematically tested

acquisition & ecosystem strategies

acquire disruptors to internalize innovation