Group 6 - Presents An Informative Study On

Dynamic Capabilities & Strategic Management

Through a Case
GDR versus Kodak - Bart Film Scanner

Order of Going
Introduction -Models of Strategy
Emphasizing the Exploitation of Market Power ( Competitive Forces Model & Strategic Conflict Model) Emphasizing Efficiency (Resource-Based Perspective Model & Dynamic Capabilities Approach)

Towards a Dynamic Capabilities Framework

Markets and Strategic Capabilities Processes, Positions & Paths Replicability & Imitatability Processes and Positions of Organizational

Case Study (GDR versus Kodak - Bart Film Scanner)

Facts, Problems & Analysis of Dynamic Capabilities

Conclusion & Discussions

Introduction
Introduce three existing paradigms - Competitive Forces - Strategic Conflict - Resource-Based And an emerging new paradigm dynamic capabilities - Processes, Positions, and Paths - Replicability and Imitatability of Organisational Processes and Positions Are they interrelated complementary or competitive? Future directions?

Development of Strategy Theory

Pay attention to

Outer-Creating Theory 1 2

Inner-Creating Theory

Competence-Based Theory
Resource-Based Theory

Competence-Based Theory

Core Competence

Competitiveness advantages
Dynamic Capabilities

The Development of Strategy Theory

Comparison
Paradigm Competitive forces Units of Focal concern analysis Industries, Structural conditions firms, products & competitor positioning

Strategic conflict
Resource based perspective Dynamic capabilities perspective

Firms, products
Resources

Strategic interactions
Assets & capabilities

Process positions, paths

Asset accumulation, Replicability & Imitability

Dynamic Capabilities and Strategic Management

Purpose To provide a coherent framework which can both integrate existing conceptual and empirical knowledge and facilitate prescription.

Assumption Firms can achieve and sustain competitive advantage by developing the dynamic capabilities approach to address rapidly changing environments.

What is Dynamic Capabilities?

The term dynamic refers to the capacity to renew competences so as to achieve congruence with the changing business environment.

Dynamic

Capabilities

the capacity to renew competences

Dynamic Capabilities

the key role of strategic management to match the requirements of a changing environment

The term capabilities emphasizes the key role of strategic management in appropriately adapting, integrating, and reconfiguring internal and external organizational skills resources and functional competencies to match the requirements of a changing environment

Definition

The term dynamic capabilities refers to the firms ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environment.
It reflect an organizations ability to achieve new and innovative forms of competitive advantage given path dependencies and market positions.

The Dynamic Capabilities Framework

The way things are done (routines, patterns of practice and learning) Current specific endowments (technology, IP, complementary assets, customer base, external relations) Strategic alternatives (presence or absence of increasing returns and attendant path dependencies)

Processess

Positions

Dynamic Capabilities

Paths

Processes

Coordination/ Integration Learning Reconfiguration/ Transformation

Organizational processes

Position

Financial Complementary

Reputational

Institutional

Technological

Specific assets

Market

Position

Path
Technological opportunities A firms current position is often shaped by the path. And a firms previous investments and its repertoire of routines (its history) constrain its future behavior. Technological opportunities are often fed by innovative activity itself. And the recognition of such opportunities is affected by the organizational structures that link the institutions engaging in basic research to the business enterprise.

Path dependencies

Dynamic Capability- Summing

Replicability & Imitatability of Processes and Positions

To sustain competitive advantage competencies must be difficult to copy. the firms

Imitation If self-replication is difficult, imitation by others is definitely harder Factors that make replication difficult also make imitation difficult Reverse engineering can be used to assault a product; processess are easier to protect A firm need not expose its processes in order to exploit them

Replicability & Imitatability of Processes and Positions

Replication Often even the firm, let alone its competitors, cannot fully understand the reasons for its distinctive advantage This makes it hard to expand operations, especially to other countries or product lines. Emulation Emulation occurs when firms discover alternative ways of achieving the same functionality In hypercompetitive markets there is little a firm can do to protect itself from emulators other than to expect and plan for their assault

Dynamic Capabilities & Strategic Management

Case On GDR versus Kodak - Bart Film Scanner

GDR - Brief History

Julie Georginelli Founder of GDR GDR- Global company with productions facilities in US, Europe and China Developed film product, processing equipment, light boxes, film dispensers and scanners for dentist

High margin films products and Georginelli vision resulted constant experimentation with new imaging methods

Evolution of GDR

Georginelli Dental Research has transitioned from an agile entrepreneurial company to one that has become overly cautious as its high-margin film sales have eroded. Even though the phases-and-gates process in place at GDR provides guidance to projects, the spirit that led the company to past success has been removed from the organization. The two main characters of the case want to bring back that 'can do' spirit as they attempt to rapidly commercialize the Bart scanner and extend the life of film.

Scanner market

Digital advances - Pending demise of film Lost zeal Over analyze programs Slow moving Over cautious entity BART, Low cost scanner turned film into digital images Angelo Bella

Product Development Phases

Product development Product concept Technical feasibility Product design Testing Production Discontinuance Gate review Joseph Namath Current manage for cash strategy

Case Facts
DIS Dental imaging Sytems Taiwan Lynn Tseng Low cost scanner Extreme cost pressure of BART DIS Unknown BT Wang- DIS President Not distant OEM, but another member of the BART team Namath GDR and DIS partnership? BT- Prototype can be developed by modifying existing products and have it ready within three months Sole risk of BT

Facts from the case

The case is intended to concentrate on the ways individuals might overcome Internal company resistance Roadblocks by partnering with an OEM partner that possesses complementary capabilities. Terms while seeking a strategic partner. (most think in terms of technical skills; however, the culture or DNA of a partner is just as important. The case also brings out aspects of Managing new product commercialization Managing technology and innovation Strategic thinking International business and leadership courses

The issues in the case concern

1) Entrepreneurial companies and their business strategies and processes for managing new product development. 2) The implications these strategies and processes have on addressing the needs of customers, shareholders and employees. 3) The role people can play in 'pushing through' corporate processes and culture to improve time-tomarket.

Conclusion
The three main Changes Shift in Locus of Control. Shift in Focus of control. Shift in balance of Power.

Conclusion
Entry decisions must be made with reference to The competences and capabilities which entrants have, relative to the competition. new

Identifying likely entrants and their timing of entry. Emphasizing on the internal processes that a firm utilizes and how they are deployed and how they will evolve. The competitive advantage is stemming from highperformance routines operating inside the firm, shaped by processes and positions. Distinctive competence is generally cannot be acquired; they must be built.