TECHNOLOGY STRATEGIES AND STANDARD COMPETITION Comparative innovation cases of Apple and Microsoft. Giorgia Cappa Joep De Frel

Transcription

1 TECHNOLOGY STRATEGIES AND STANDARD COMPETITION Comparative innovation cases of Apple and Microsoft Giorgia Cappa Joep De Frel

2 DEFINITION OF INNOVATION: A process of transforming the technology frontier into the Commercialised product/process in a competitive market. Typical S pattern LIFE CYCLE MODEL : model that describes the process of developement of innovationa Utterback and Abernathy: Used innovation life cycle to Describe the process of Innovation and the degree Of technological change Fisher and Pry : When a new innovation reaches About 5% penetration of potential Market provide a base for forecasting The speed and ultimate Penetration achievable Vernon: Model to explaining the Developement as a pattern of Product substitution

3 MICHAEL PORTER PATTERN FIVE FORCES APPROACH: Michael Porter created a pattern that consider five forces for competitive position: Threats of new entrant Threats of subsitute products Relations with supplier Bargaining power of buyers PLATFORM CONCEPTS Porter argues that the adoption of Strategies is important in managing Innovation, in order to achieve the Competitive advantage Platform is useful to create a successful innovation! Two pattern of developement of platform: - uniform standardisation - Without uniform standardisation

4 Life cycle model in different industry sectors In Video recording industry represent a succession of S-curves; In computer industry the technological change based on life cycle pattern is a succession of S curves from maniframe to WAP technology; In the energy sector life cycle pattern isthe progress from steam power to hybrid technology; In bank card industry ovation process could be tracked by the pattern of technology subsitution; In mobile telephone industry the lyfe cycle process is the generation of mobile system from 1G to 4G. Two comparative cases: Microsoft vs Apple APPLE: Mac OS MICROSOFT: Microsoft Windows

5 APPLE STRATEGY Strategy of not licensing MAC OS to gain benefits!! Two limits: limited the potential to create a business platform Limited to have a competitive advantage 2 STEP : commercialisation of Apple Lisa ;!! One limit : too expensive for possible purchasers Now : Apple regained its competition through the creation of high quality products based on a high technological mobile structure: Apple Iphone, Ipod, Ipad, New MAC

6 Use of Microsoft Windows that had similar characteristics of MAC OS but less expensive MICROSOFT STRATEGY Microsoft used especially TWO strategies : Licensing strategy : used Window and Intel microprocessor and created WINTEL Product building strategy Through these strategies Microsoft was was de facto standard for PC About technology platform: Microsoft created a sussful platform in operative system market

7 Considerations... The level of innovation not depend only from conventional technology push or demand push model: the delivery of mobile innovations by Apple and Microsoft reflectsthe dynamycs interactions between the forces of technology push and demand pull. The level of technology adoption and diffusion can be seen as S curve that reflects the adoption, diffusion and market acceptance of innovation. Apple and Microsoft take into consideration the Five forces of Porter. They have the ability to create an industy standard enables an innovator to create competitive advantage through competitive Internet and phones technological platform.

8 Conclusions The ability to establish the innovastor's own technology as standard provides a route to competitive advantage. Standard help to create network externality effect through compatibility Technology platform emerges as combination of strategies and should be consistently to mantain advantage. Technology platform isopened to plug-in of various applications which create an increase of value for customers. The players of the market should use empirical analysis to define thier strategic plan to compete, especially in the mobile market launch.