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Dominant Design and the survival of firms

Dominant Design and the survival of firms. By James M. Utterback POSMIT LAB. Dominant Design . Definition The one that wins the allegiance of the marketplace The one that competitors and innovators must adhere to if they hope to command significant market following Characteristics

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Dominant Design and the survival of firms

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  1. Dominant Design and the survival of firms By James M. Utterback POSMIT LAB

  2. Dominant Design • Definition • The one that wins the allegiance of the marketplace • The one that competitors and innovators must adhere to if they hope to command significant market following • Characteristics • It usually takes the form of a new product or (set of features) synthesized from individual technological innovations introduced independently in prior product variants • It embodies the requirements of many classes of users of a particular product, even though it may not meet the needs of a particular class to quite the same extent as would a customized design

  3. Dominant Design • Examples • QWERTY Keyboard • IBM PC format • Intel 8088 chip

  4. Dominant Design • How does a dominant design occur? • The result of the interplay between technical and market choices at any particular time • How can we scrutinize a dominant design? • Kim Clark’s design hierarchies approach would be a good tool to see successful evolution of Dominant Design • “Technological trajectory” is the path of progress established by the choice of a core technical concept at the outset

  5. Dominant Design • Example of Dominant Design in Typewriter • Two technological trajectories are shown

  6. Dominant Design • Factors other than technology that come into play in dominant design • Collateral Asset • Industrial Regulation and Government Intervention • Strategic maneuvering at the Firm level • Communication between Producers and Users

  7. Dominant Design and Industry structure • Dominant Design and Numbers of Competing Firms

  8. Dominant Design and Industry structure • Enforcement of Standards • The effect of enforcing or encouraging standardization so that production or other complementary economies can be sought and perfected • Change in the Pace and Direction of Innovation • A design can have a profound impact on both the direction of further technical advance and the rate of that advance

  9. Dominant Design and Industry structure • Examples and Evidence • Typewriter Industry

  10. Dominant Design and Industry structure • Examples and Evidence • Automobiles

  11. Dominant Design and Industry structure • Examples and Evidence • Television and Tube

  12. Dominant Design and Industry structure • Examples and Evidence • Television and Tube

  13. Dominant Design and Industry structure • Examples and Evidence • Transistor

  14. Dominant Design and Industry structure • Examples and Evidence • Eletronic Calculators

  15. Dominant Design and Future Innovation • Future Implications • A powerful impact on the development of future technological innovations within the same industry • User acceptance of the dominant design of the original innovation created certain boundaries within which subsequent waves of innovation wisely developed

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