the nature and microfoundations of sustainable enterprise performance David J Teece Shinyoung Kim Operations Management What are Dynamic Capabilities Dynamic Capabilities Dynamic Capabilities ID: 317510
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Slide1
Explication Dynamic Capabilities: the nature and microfoundations of (sustainable) enterprise performance
David J. Teece
Shinyoung
Kim
Operations ManagementSlide2
What are Dynamic Capabilities? Dynamic Capabilities
= Dynamic + Capabilities Slide3
Why Dynamic Capabilities?Open EconomyHigh Technology
Open User InnovationCospecialized
Asset
Enterpreneurship
….Slide4
Dynamic capabilities frameworkSlide5
Processes
to Identify
Target
Market
Segments,
Changing
Customer
Needs,
and
Customer Innovation.
Processes to Tap Supplier
&
Complementor Innovation.
Processes to
Direct
Internal R&D &Select New Technologies
Processes
to Tap Developments
in Exogenous Science and Technology
Elements of an ecosystem framework
for
“
Sensing
” market and technological opportunities
Analytical
Systems
(and Individual
Capacities)
to
Learn and
to
Sense,
Filter
, Shape,
and
Calibrate
Opportunities
.Slide6
Delineating the Customer Solution and the Business Model
Selecting the Technology and Product Architecture;
Designing Revenue Architectures; Selecting Target Customers; Designing Mechanisms to Capture Value.
Strategic decision skills/ execution
for “
Seizing
”
market and technological opportunities
Enterprise Structures, Procedures, Designs and Incentives for
Seizing
Opportunities
Selecting Enterprise Boundaries
to
Manage Complements
and“Control”Platforms
Calibrating
Asset Specificity;
Controlling
Bottleneck Assets;
Assessing Appropriability
; Recognizing
, Managing, Capturing
Cospecialization Economies
Selecting Decision-Making ProtocolsRecognizing Inflexion Points and Complementarities;Avoiding Decision Errors and Anticannibalization Proclivities
Building Loyalty and Commitment
Demonstrating Leadership; Effectively Communicating; Recognizing Non-Economic
Factors, Values, and
CultureSlide7
Continuous Alignment
and Realignment of Specific Tangible and Intangible Assets.
Knowledge Management
Learning;
Knowledge
Transfer;
Know-
howIntegration
;
Achieving Know-how and Intellectual Property Protection.
Governance
Achieving Incentive Alignment; Minimizing Agency Issues;
Checking Strategic Malfeasance; Blocking Rent Dissipation.
Decentralization and Near Decomposability
Adopting Loosely Coupled Structures; Embracing Open Innovation;
Developing Integration
Coordination Skills.
Cospecialization
Managing Strategic Fit
So That Asset Combinations Are Value Enhancing.
Combination, reconfiguration, and asset protection skills
for
“Transforming” market and technological opportunitiesSlide8
“Orchestration” Dynamic capabilities Slide9
D. J.
Teece
Vs. M. E. Porter
Let’s Think about ….
Conflicting
views
on
S
ustainable
C
ompetitive Advantage
Slide10
Sensing
SeizingTransforming
Result
iPod
Existing
mp3 players
were
too “geeky”
Create
an aesthetically
appealing
portable
device with a simple
interface over an accelerated product
development cycle;
later: improve appropriability
with exclusive Fair Play DRM in the iTunes Music StorePort iTunes software to rival Windows
platform;
Expand into content distribution with the iTunes Music Store;
Shift company emphasis from computers to consumer
electronics
Domination of the
portable digital music
player market;
Expansion to video capabilities (playback and distribution).iPhoneExisting smart phonesretained
an awkward
interface
too close
to
their
cell phone roots.
Create
a multimedia phone with
a
large
screen and an intuitive
interface
; promote complementary
asset
creation with the App Store
infrastructure
.
Develop
telephony capabilities;
enter
the regulated telephony
market
One
of the only companies
making
money with
smart
phones
iPad
“
Netbooks
” provide an unsatisfying computing experience
and
“E-readers”
provide
limited functionality.
Scale
up the
iPhone
interface to provide a richer multimedia platform without phone functionality.Extend the “simple interface” aesthetic to a computing platform.Make new demands for Tablet PC
Dynamic Capabilities at
DYNAMIC CAPABILITIES: A GUIDE FOR
MANAGERS
by
David J.
Teece
(2011)
Slide11
How to build Entrepreneurship?
“Capturing value is never certain, but it can be managed.” Slide12
Thank You!