started in Alpha, the pace that we developed the product in was new to me. I have never seen it happen before. But it is because we just work on one thing here. This is development! We have no customers, nothing like that! We are allowed to have (CTO, Alpha) focus. It’s a different agenda.” Both companies have separated the strategic decision making from the technological development process. Beta it may be argued that protecting the technological development from market pressures is an important component for focusing the technological development and thus enhancing the innovative capability of the firm. Open exchanges with the potential first customers also gives input to the innovation process. For Alpha it may be argued that the relatively open process with inputs from suppliers, research institutes and customers, makes a richer resource base of knowledge and know how to enhance the innovation process. Table 3: Microfoundations of Dynamic Capabilities of Discontinuous Innovations Microfoundations Alpha Beta Product Focused technological Established around the product Established around the product idea development idea Process Searching for technology and Suppliers are essential in Protect confidentiality of technology. selecting suppliers developing technology Do not involve outside partners. Outsources technology searches Integrating innovative products Uses their connections with a Created a technical steering committee with dominant technology petroleum company to gain access with three potential customers who to practical drilling expertise. monitor their technology development Position Involving potential customers Carefully works with involving Involve potential customers to oversee in the development of the innovative partners the development, but do not directly use –oriented product expertise of customers Challenges in size: Expresses concerns that petroleum Expresses the importance of using the Collaborating with large companies have the upper hand in same as their customer, speak “codes” organizations. negotiations. the same language Gaining legitimacy; the art of Mindful of the importance of Aware of the importance of having trust being visible acceptance of technology and from investors and stakeholders procedures from the market. Organizational transformation Aware of the importance of sales Development of organization to meet for commercializing personnel customers needs Paradigm
started in Alpha, the pace that we developed the product in was new to me. I have never seen it happen before. But it is because we just work on one thing here. This is development! We have no customers, nothing like that! We are allowed to have focus. It’s a different agenda.” (CTO, Alpha) Both companies have separated the strategic decision making from the technological development process. Beta it may be argued that protecting the technological development from market pressures is an important component for focusing the technological development and thus enhancing the innovative capability of the firm. Open exchanges with the potential first customers also gives input to the innovation process. For Alpha it may be argued that the relatively open process with inputs from suppliers, research institutes and customers, makes a richer resource base of knowledge and know how to enhance the innovation process. Table 3: Microfoundations of Dynamic Capabilities of Discontinuous Innovations Microfoundations Alpha Beta Product Focused technological development Established around the product idea Established around the product idea Process Searching for technology and selecting suppliers Suppliers are essential in developing technology Protect confidentiality of technology. Do not involve outside partners. Outsources technology searches Integrating innovative products with dominant technology Uses their connections with a petroleum company to gain access to practical drilling expertise. Created a technical steering committee with three potential customers who monitor their technology development Position Involving potential customers in the development of the product Carefully works with involving innovative –oriented partners Involve potential customers to oversee the development, but do not directly use expertise of customers Challenges in size: Collaborating with large organizations. Expresses concerns that petroleum companies have the upper hand in negotiations. Expresses the importance of using the same “codes” as their customer, speak the same language Gaining legitimacy; the art of being visible Mindful of the importance of acceptance of technology and procedures from the market. Aware of the importance of having trust from investors and stakeholders Organizational transformation for commercializing Aware of the importance of sales personnel Development of organization to meet customers needs Paradigm
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