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The Four Modes of Innovation Framework (Innovation initiatives within the simulation fall within one of these modes)

External

Internal

Community

Specialist

Venture

Network

Organizational Scope

Informal

Formal

Incentive Mechanism

“Self-selecting self-arranging”

“Hierarchy”

no <= “Crossing firm boundaries” => yes

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1

Digitization and Collaborative Culture have caused an Expanded Innovation Landscape

Example: Specialist Mode

Extreme levels of performance: high quality

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2

Using new tools to influence design capabilities

Example: Venture Mode

Allowing rapid, low cost development

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3

New sources of entrepreneurial ideas

Community Mode

Many new ideas, for lower cost

© Tucker J. Marion Sebastian K. Fixson 2016

Copyright © 2017 President and Fellows of Harvard College.

4

“The whole is greater than the sum of its parts.”

Aristotle

Example: Network Mode

Collaboration and partnership is important!

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5

An innovation ecosystem, gains in efficiency

Opportunities and Challenges

Copyright © 2017 President and Fellows of Harvard College.

6

Characteristics and example of Initiatives

Specialist (can develop high quality ideas, but can be limited in the quantity and diversity)

E.g. Digital marketing expert

Venture (can be individuals, corporate entrepreneurs or small internal teams able quickly identify, select and assemble necessary recourses)

E.g. Internal venture groups

Network (combines trust-based sharing and collaborations with high level of expertise, takes advantage of networking and innovation system)

E.g. Special projects with leading advertisers

Community (open innovation, attracts large number of new ideas for little cost)

E.g. The Citizen Sun social media followers (crowdsourcing initiatives)

Innovation Mode Opportunities Challenges

Specialist

New design tools allow

advancing technology

Building capability

internally

New collaborative tools

can spur process

advances

Keeping superior

personnel

Venture

Novices and resource

constrained projects can

enter

Finding scalable

projects and markets

With new entrants, the

markets for new services

will grow

Design and

manufacturing

scalability

Community

Prospective customer

involvement

Establishing

sustainable and

scalable business

models

Traditional open

innovation benefits

Maintaining inflow

of new participants

Network

Bundling expertise

from different fields

Balancing external

and intrinsic

motivation

Improved product

solutions and process

efficiencies

Increasing systems-

level integration

Innovation Mode

Opportunities

Challenges

Specialist

New design tools allow advancing technology

Building capability internally

New collaborative tools can spur process advances

Keeping superior personnel

Venture

Novices and resource constrained projects can enter

Finding scalable projects and markets

With new entrants, the markets for new services will grow

Design and manufacturing scalability

Community

Prospective customer involvement

Establishing sustainable and scalable business models

Traditional open innovation benefits

Maintaining inflow of new participants

Network

Bundling expertise from different fields

Balancing external and intrinsic motivation

Improved product solutions and process efficiencies

Increasing systems-level integration