FIFTH EDITION

Strategic Management of
Technology and Innovation

Robert A. BurgeSmani
Clayton M. Christensen
Steven C. Wheelwright

M C G R A W - H I L L

I N T

Em'U

A T I O N A L

E D I T I O N

CONTENTS

READING I-4

Preface

Management Criteria for

Effective Innovation
PART ONE

97

CASE I-4

Matrix S e m i c o n d u c t o r Inc.:
Tackling Challenges of Strategic
Dimensions

INTEGRATING TECHNOLOGY
AND STRATEGY: A GENERAL
MANAGEMENT PERSPECTIVE
TECHNOLOGICAL INNOVATION

CASE I-5

13

StubHub (A): January 2004

READING 1-5

CASE 1-1

Elio Engineering, Inc.

105

13

121

Defining the M i n i m u m W i n n i n g
Game in High-Technology Ventures

140

READING 1-1

Profiting from Technological Innovation:

Implications for Integration, Collaboration,
Licensing, and Public Policy

READING 1-6

32

CASE I-2

Advent Corporation

49

Assessing Your Organization's

Capabilities: Resources, Processes, and
Priorities
CASE 1-6

Electronic A r t s in 1995

READING I-2

How to Put Technology into

Corporate Planning

62

153

164

CASE I-7

Electronic A r t s in 2002

180

READING I-3

The Core Competence of the Corporation

TECHNOLOGICAL
AND STRATEGY

66

Electronic Arts in 2005: The Next

Generation of Convergence

INNOVATION
78

CASE I-3

Pixim (A): A u g u s t 2001

CASE 1-8

78

199

READING 1-7

The A r t of High-Technology
Management

226

VIII

CONTENTS
READING 11-8

PART TWO

C o m p e t i n g T e c h n o l o g i e s : An O v e r v i e w

DESIGN AND IMPLEMENTATION

OF TECHNOLOGY STRATEGY:
AN EVOLUTIONARY PERSPECTIVE

435

CASE 11-7

Digital Creation a n d D i s t r i b u t i o n of M u s i c :
R e v i s i t e d in 2005

445

READING 11-9

TECHNOLOGICAL EVOLUTION

253

P r o p e r t y in the Digital A g e

READING 11-1

Patterns of Industrial I n n o v a t i o n

253

453

READING 11-10

Note on New D r u g D e v e l o p m e n t in the

READING II-2

Exploring the Limits of the Technology

S-Curve. Part I: Component Technologies

F i n d i n g t h e B a l a n c e : Intellectual

United States

465

259
CASE II-8

READING II-3

Exploring the Limits of the Technology

S-Curve. Part II: Architectural Technologies 278

ORGANIZATIONAL CONTEXT

CASE 11-1

MySQL Open S o u r c e Database in 2004

284

READING 11-11

304

Gunfire at Sea: A case Study of

Innovation

CASE II-2

MySQL Open Source Database in 2006 (B)

Eli Lilly a n d C o m p a n y : D r u g
D e v e l o p m e n t Strategy

READING II-4

READING 11-12

How Can We Beat Our Most Powerful

Competitors

A r c h i t e c t u r a l I n n o v a t i o n : The
R e c o n f i g u r a t i o n of E x i s t i n g P r o d u c t
T e c h n o l o g i e s a n d the Failure of
Established Firms

3io

READING II-5

C u s t o m e r Power, Strategic Investment,

a n d the Failure of L e a d i n g Firms

330

M a k i n g SMaL B i g : SMaL Camera

Technologies

350

Disruption, Disintegration and t h e

Dissipation of Differentiability
INDUSTRY CONTEXT

388

Intraorganizational E c o l o g y of Strategy
M a k i n g a n d Organizational A d a p t a t i o n :
T h e o r y a n d Field Research

Strategic D i s s o n a n c e
STRATEGIC ACTION
403

415

READING 11-7

Crossing the C h a s m a n d Beyond

521

544

563

388

CASE II-6

SAP America

509

READING 11-14

CASE II-5

Slouching Toward Broadband:

Revisited in 2005

496

READING 11-13

363

CASE II-4

The U.S. T e l e c o m m u n i c a t i o n s I n d u s t r y :
1996-1999

486

CASE 11-10

Intel C o r p o r a t i o n : The D R A M D e c i s i o n

READING II-6

486

CASE II-9

Hewlett-Packard: The Flight of the

Kittyhawk
^

CASE II-3

470

429

577

READING 11-15

Strategic Intent

577

CASE 11-11

I n f o s y s C o n s u l t i n g in 2006: L e a d i n g t h e
Next Generation of B u s i n e s s a n d
Information Technology Consulting

589

CONTENT?

CASE 11-12

READING III-6

Inside Microsoft: The Untold Story of

How the Internet Forced Bill Gates to
Reverse Course

A b s o r p t i v e Capacity: A New Perspective

on Learning a n d Innovation
608

Intel Corporation: Strategy for the 1990s

612

623

762

CASEIII-2
Cisco S y s t e m s , Inc.: A c q u i s i t i o n
Integration for M a n u f a c t u r i n g

READING 11-16

Let Chaos Reign, Then Rein in

C h a o s R e p e a t e d l y : Managing Strategic
Dynamics for Corporate L o n g e v i t y

CASE 111-1

NEC: A New R&D Site in Princeton

CASE 11-13

746

775

READING III-7

Making Sense of Corporate Venture Capital 792

CASE 11-14

Charles S c h w a b & Co., Inc., in 1999

637

CASE 11-15

The Charles Schwab Corporation in 2007:

Fixing and Redefining the Core Business

799

READING III-8

654

CASE 11-16

HP and C o m p a q C o m b i n e d : In search
of Scale a n d Scope

LINKING NEW TECHNOLOGY AND

NOVEL CUSTOMER NEEDS
Note on Lead User Research

799

CASE III-3

What's the BIG Idea?

806

668
READING III-9

Eager Sellers and Stony Buyers:

Understanding the Psychology of
New-Product Adoption

READING 11-17

Managing the Strategic D y n a m i c s of

A c q u i s i t i o n Integration: L e s s o n s f r o m
HP and C o m p a q

822

688
CASE III-4

GolfLogix: Measuring the Game

of Golf

PART THREE

829

READING 111-10

ENACTMENT OF TECHNOLOGY
STRATEGY-DEVELOPING A
FIRM'S INNOVATIVE CAPABILITIES
INTERNAL AND EXTERNAL SOURCES
OF T E C H N O L O G Y

728

READING III-4

T r a n s f o r m i n g Invention into I n n o v a t i o n :
The Conceptualization Stage

878

878

CASE III-6

889

CASE IH-7

R. R. Donnelley & Sons: The Digital

Division

901

CASE MI-8

730

READING III-5

The Transfer of Technology f r o m

Research to Development

855

CASE III-5

Cisco S y s t e m s , Inc.: I m p l e m e n t i n g ERP

725

READING III-3

Perfecting Cross-Pollination

Living on the Fault Line

Pitney B o w e s Inc.
719

READING III-2

The Lab That Ran Away f r o m Xerox

READING 111-11

INTERNAL CORPORATE V E N T U R I N G
719

READING 111-1

Capturing the Returns f r o m Research

Innovation Killers

Intel C o r p o r a t i o n : The H o o d River

Project

914

CASE HI-9 -

738

3M Optical S y s t e m s : Managing Corporate

Entrepreneurship

936

CONTENTS

READING 111-12

At 3M, a Struggle Between Efficiency

and Creativity

949

BUILDING COMPETENCE/
CAPABILITIES THROUGH NEW
PRODUCT DEVELOPMENT

READING 111-13

CASE IV-3

Managing the Internal Corporate Venturing

Process: S o m e R e c o m m e n d a t i o n s f o r
Practice

T h e ITC e C h o u p a l Initiative
955

READING 111-14

Managing Internal Corporate Venturing

Cycles

965

READING 111-15

A m b i d e x t r o u s Organizations:
Managing Evolutionary a n d
Revolutionary Change

1077
1077

READING IV-5

Creating Project Plans to Focus Product

Development

1091

CASE IV-4

GenentechCapacity Planning

1101

READING IV-6

The New Product Development Map

974

1119

READING IV-7

Accelerating the Design-Build-Test Cycle

for Effective New Product Development

1128

PART FOUR
PART FIVE

ENACTMENT OF TECHNOLOGY
STRATEGY-CREATING
AND IMPLEMENTING A
DEVELOPMENT STRATEGY
NEW PRODUCT DEVELOPMENT

CONCLUSION: INNOVATION
CHALLENGES IN ESTABLISHED
FIRMS
1007

Intel Centrino in 2007: A New "Platform"

Strategy for Growth

READING IV-1

C o m m u n i c a t i o n Between Engineering a n d
P r o d u c t i o n : A Critical Factor

1007

CASE IV-1

Vitreon Corporation: The Hyalite Project

1013
1025

1038

Building a Learning Organization

1160
1193
1205

CASE V-3

Nike's Global Women's Fitness Business:

Driving Strategic Integration

1213

1053

READING IV-4

Finding the Right J o b for Your Product

SAP AG in 2006: Driving Corporate

Transformation

The Power of Strategic Integration

READING IV-3

Organizing and Leading "Heavyweight"

D e v e l o p m e n t Teams

CASE V-2

READING V-2

CASE IV-2

Eli Lilly a n d C o m p a n y :
Drug Development Strategy (A)

1140

READING V-1

READING IV-2

The New P r o d u c t L e a r n i n g Cycle

CASE V-1

1064

Credits

1235

Index

1238