Mastering the Dynamics of Innovationby James M. Utterback Summary by David E. Goldberg University of Illinois at Urbana-Champaign
Text • Utterback, J. M. (1996). Mastering the dynamics of innovation. Boston, MA: Harvard Business School Press. • James Utterback is the David J. McGrath Jr. Prof. of Management and Innovation and the Chair of the MIT Management of Technology Program
Typewriter Innovation • Sholes typewriter (1868) leads to Remington No. 1. 1873. • New workers: typists, pay high work conditions good. • Wagner design: front and center keys led to Underwood. • IBM purchases Electrostatic typewriters in 1933.
Word Processors and PCs • 1964 Magnetic tape IBM Selectric. • 1970s standalone word processors • Altair 8800; • 1977 Apple II • IBM PC 1981
Lessons from Typewriters and Such • New innovations from old capabilities • Emergence of dominant design • Shifting ecology of firms. • Waves of technological change • Changing leadership at breakpoints in technology. • Invasion of alien technology
What is a Dominant Design? • New product formed synthesized from technological innovations produced independently. • Embodies requirements of many classes of user. • Collateral assets or co-specialized assets help enforce dominant design (IBM PC).
Industry Structure • Innovation does not come from large dominant player. • Small number of players initially, then larger number, then reduction. • Shift from product innovation to process innovation.
Edison and the Light Bulb • Outsiders as innovators. • Social factors need to be considered (terminology: burners and mains for electric). • Defensive innovation by established technology.