Discipline in innovation

A common theme in the literature on innovation and new product development is the notion that firms often have too many, under-resourced projects, resulting in a lack of discipline.

Too many projects + Not enough resources = Lack of discipline.

When discipline is reduced, critical activities get rushed or, worse, don't occur at all. Robert Cooper (1999) identifies 8 critical success factors in successful product development:

1. Solid up-front homework: to define and justify the project.
2. Voice of the customer: slave-like dedication to the market.
3. Superior product: differentiated, unique value from the customers' perspective.
4. Sharp, early product definition: before development.
5. Well-planned, adequately resourced launch.
6. Tough go/no-go decisions: don't be afraid to kill a project.
7. Accountable, dedicated, supported cross-functional teams with strong leadership.
8. An international orientation.

This video by Rebecca Henderson of the MIT is well worth watching as she discusses discipline in product development. I particulary like her suggestion for creating a high-conflict/high-respect atmosphere in firms.


innovation management in Asia

Asus' great branding opportunity

I don't know if this post is an innovation post or branding post. According to a Digitimes article, Asustek, one of Taiwan's most successful OEM/ODM firms, will launch a tablet PC in May or June. This will be called the "R1" and probably fall under the broader Asus marque.

Asus is the brand of choice among Taiwan's many computer engineers/geeks (I've heard this many times during my stay in Taiwan). Isn't this a great marketing opportunity for Asus to put their stamp on the world and get noticed in a world of Dells, H-Ps, Sonys, Lenovos? They could do something like this:

"Taiwanese engineers help design and manufacture 4 out of 5 notebooks available in the world today [insert little asterix with the official source]. Which notebook is the brand of choice for Taiwanese notebook engineers? Asus."

Something along those lines, anyway.

[Link] This article is interesting for anybody who rejects the notion of branding "convergence," a frequently discussed issue on the Origin of Brands Blog. Mark Fields, president of Ford America, states in this article that by the end of the century, there will be 300 marques/brands, up from 215 in 2002.






innovation management in Asia

Taiwanese firms' innovation strategies

There are numerous typologies in the literature on innovation and international new product development that attempt to describe what firms do. There's Miles and Snow's (1978) typology: prospector, defender, analyzer and reactor. There is also Merle C. Crawford's (1980) typlogy, which focuses more specifically on firms' innovation strategies:

Inventive: The firm seeks technological leadership vis-à-vis product packaging, positioning etc. It tries to be first to market with the product.

Adaptive: The firm chooses to wait and let others lead, and then to quickly adapt or modify the product. By means of innovative imitation it seeks to be second but best.

Economic: The firm builds strength by producing what others have created, but by doing so more economically. It tries to be the low-cost producer, particularly in the early maturity phase of the life cycle.

Innovative Applications: The firm utilizes established technology, but applies it creatively to new uses.

When looking at these, you'd be tempted to conclude that a firm actively pursuing an Inventive innovation strategy is more "innovative" than firms pursuing other, less-glamorous innovation strategies. Not so: you just have to think of Sony's now-famous Walkman, the outcome of utilizing established technology, but applying it to new uses (Innovative Applications), to see that being innovative often has more to do with using what we have than what we don't have.

So what innovation strategies do Taiwanese firms pursue in multiple country-markets? I interviewed individuals with considerable input into their firms' innovation strategies: There was no particularly common innovation strategy that they perceived their firms as pursuing -- a mixed bag. (What they actually do is another matter of course!)

Other things that became evident while doing this research:

Gaining access to senior individuals in Taiwanese firms is extremely difficult and frustrating (there is a complex, deliberate, superficially benign, protective web/cloud/haze of individuals blocking your way). Be prepared!

None of the individuals I interviewed said that their firms had a formal document that guided their firms' innovation strategies as they operate in multiple country-markets.

No formal innovation strategy? That must cause some heated arguments between the accountants and marketers when trying to develop new products for international markets.


Taiwan

product development

Innovation in Taiwan

Oftentimes people don't associate Taiwan with innovation. They think that Taiwan and other parts of Asia are only good at copying what others have created. This view is so 1980. It's also dangerous. Asian firms are quite happy to let firms in the West believe this stereotype as it makes it easier for firms based in this region to learn and encroach into Western firms' business.

The view that Asian firms can't innovate also forgets that if you are in the game of designing/manufacturing products for the likes of Dell, Apple, H-P and Sony cheaply, you're going to have to innovate to make a profit. It's a bidding game most of the time, and there are a handful of firms all trying to get the next iPod order or power-pack order. Manufacturing electronic products well, cheaply and profitably requires bucketloads of innovation.

Link: The Taipei Times has an interesting article of on some recent mergers and consolidation activities in Taiwan.


product developmentTaiwanese OEM/ODM firms

China search engines

So Google is making further inroads into China, but don't expect them to help you find anything on Tienamen Square if you are over there. Google's decision not to allow access to Tienamen-Square-related Web content has been rationalized publicly as having to follow local laws. Google is also in Taiwan, doing R&D and making use of Taiwan's expertise (technology) in searching Chinese characters. I came across this report on the major search engines in China. I thought this might be useful for anybody out there in the blogosphere who's interested in getting their Web site some exposure through the search engines.

One thing's for sure, there isn't a dominant global search engine and if you're going to get high visibility for your business in multiple country-markets, it's going to involve finding out which search engine is dominant in each of your country-markets. In Taiwan, Yahoo dominates search. For auctions, it's also Yahoo, with eBay trailing far behind.

What about South Korea? India? Japan? Anybody know?


innovation management in Asia

Taiwan news

Clyde Warden, professor at the National Chung Hsing University, has arranged a Blogging round table on April 22, 2006. This event will be held at the National Cheng Kung university in Tainan, which is a city in the South of Taiwan. There is a poster of this event here.

The Taipei Times has yet another article on Benq, "a leading electronics maker" in Taiwan. That should read: "a loss-making electronics maker" Mr. Taipei Times reporter. This article describes how they have sold their optical storage unit to Lite-on, an optical-drive manufacturer. This well-timed sale will help Benq post better results at the next shareholders' meeting. You can expect a headline in the next few months along these lines: "Benq increases net revenues by X amount." Tricky.

More generally, Taiwanese OEM/ODM firms are feeling the heat from the South Koreans. Consequently, there have been many reports in the Taiwan press recently of new "strategic partnerships," mergers and even an increase in vertical integration.


Taiwan

MIT's notebook

Disruptive innovations, such as MIT's "one-hundred-dollar notebook," have been getting a lot of flak from industry experts. Disruptive innovations always receive flak in the early stages of their introduction to markets -- usually from individuals ensconced in, and benefitting from, the status quo. There are numerous past examples of this:

- British Airways' condemnation of budget airlines in Europe.

- Microsoft's criticism of Linux.

- Chung-Hua telecom's lack of respect for Skype.

- Auction houses' chuckles at the young eBay.

- Old-style universities' professors' contempt for the "new" universities, such as the University of Phoenix.

- IBM's indifference to PCs when they were on the horizon.


The whole point of this whole disruptive innovation thing is that the product is technically inferior to incumbents' offering. However, the people who will actually value this "inferior product" think it is fantastic relative to what they have now -- nothing. So when you ask Microsoft and Intel about their views on the one-hundred-dollar notebook, you're asking the wrong people.

Better yet, comments such as "it's just a gadget" are a good indication that this low-cost notebook is going to be a winner.


innovation management in Asia

Too narrow a view of technology . .

is a dangerous thing. Britain, Holland and Germany sell a lot products based on their numerous technologies. And it's not always the most obvious of products. This technology is particularly hard to develop as it is an outcome of factors that are unique to those countries. Also, the technology has accumulated over many, many years.

It might be easy to rip a smartphone or solar panel apart and have a look. But emulate Britain's huge dance music industry? Not easy.

Here are a couple of innovation-related articles from the Taipei Times here in Taiwan:

Taiwanese firms' increasing interest in India, both as market and production location.

Another on Sharp's and other Japanese firms' recent innovation activities. This one's interesting because it hammers home the idea that you can either innovate proactively or reactively.








innovation management in Asia