James Utterback – Mastering the Dynamics of Innovation 5.0
“A model with explanatory power for the scholar, and action ideas for the manager” – that’s what Professor James M. Utterback says of his model of dynamic industrial innovation. I agree 100% that is why this book has pride of place in this blog as being the first posted.
I have used the model to come out with the correct line extensions for a product stage. I have used it to break through with radical innovation in the Philippines (though adaptive, globally) at another later stage battle. I have used it as the template to time acquisition of strategic technology partners from abroad. In effect, I have used it to describe the competitive technology terrain of the present battlefield.
Briefly, the model says that the first phase turns around the product itself. These include features, standard specs and the like until a dominant design wins in the market.
Note the good Professor’s insight that market acceptance of a particular design set, and not product superiority per se, determines the winning dominant design. Firms who continue to fight product wars when the dominant design has been won are doomed to fail. And firms must have or must acquire the right skills for each stage to win.
When a dominant design comes out, the war moves to process innovations to make the design cheaper or easier to use. These are incremental changes to simplify and value engineer.
As the class becomes almost a commodity, the war moves toward radical product innovation. Then, the war resets to this next field. First stage product battles become the norm again and so the cycle goes.
Professor Utterback acknowledged two names in 1999 that resonates for me today. Prof Clayton Christensen’s dissertation on disk drives was quoted extensively (more in the future). Another is Prof Christopher Freeman who some consider as the father of National Innovation Systems (also, in the future).
Professor Utterback worked from the past to the present and put together a firm foundation for the future. So, innovation is always done on the shoulders of giants …
Mapping the competitive space of industry shows the gaps and opportunities. Do you opportunities in your business space. Write a comment!
(James M Utterback, Mastering the Dynamics of Innovation, 1994, President and Fellow of Harvard College)
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