A
Abrasives
market size for, 58
superabrasive grinding wheels, 59–61
Adoption chain
costs versus benefits, 56–61
goals of, 7
innovation success, logic of, 62–64
intermediaries in, 55, 61–62
managing, aspects of, 77–78
partner as customer approach, 61–62
solution, digital cinema example, 71–76
tensions in. See Adoption chain risk
Adoption chain risk, 55–78
defined, 6, 34, 56
digital cinema example, 67, 69–72
electronic health record (EHR) example, 123–28
innovation versus status quo, 65
Michelin PAX System example, 64–65
MS Office 2007 example, 56–58
recognizing, 64, 77
superabrasive grinding wheel example, 60–61
and timing, 77
AERx, 102
Agassi, Shai, 180, 184, 186–87, 240. See also Better Place
Air, 102
Amazon
ecosystem carryover by, 207
e-reader. See Kindle
value blueprint by, 96–99
American Electric Vehicle Co., 165–66
Android, 207–8
Apple, 207–23
competitors, 207–8
ecosystem carryover by, 213–16, 218–21
iPad, 100, 218–21
iPhone, 52, 147
iTunes, 146, 156
staged expansion by, 209–10, 216–17
success, basis of, 195, 207–8, 216, 223
timing of product launches, 144–45, 147, 208–9, 211
See also specific products
Apps, iPhone, 216–17
AT&T, and iPhone, 212, 214–15
Automobiles
electric. See Electric vehicles (EVs)
hybrids, 171
See also Tires, automobile
Avatar, 74
Aventis, 102–3
B
Bag of Bones (King), 89
Baldwin, Don, 25
Ballmer, Steve, 212–13
Balsillie, Jim, 211
Banking, mobile. See M-PESA
Barnes & Noble, Nook, 100
Barrett, Craig, 122
Battery-powered autos. See Better Place; Electric vehicles (EVs)
Berelowitz, Dr. Michael, 109
Better Place, 179–90, 235–41
battery exchange stations, 183–84
ecosystem partners, 184–85
ecosystem reconfiguration levers, 180–81, 189–92
EV solutions by, 180–86
limitations of, 188–90
OScar onboard software, 183, 185
power demands, management of, 185–86
profits, source of, 187–88
target markets for, 187, 238–39
value blueprint, 181
Bezos, Jeff, 96–97. See also Amazon
BlackBerry, 211
Bogaty, Nick, 93
Books, electronic. See E-books; E-readers
Bourdais le Charbonniere, Eric, 23
Brandt, Peter, 102
C
Cameron, James, 70, 74
Canon, 222
Cell phones. See Mobile phones
Cerner Corporation, 122
Chubb, Tom, 23
Cinema, digital. See Digital cinema
Co-innovation
difficulty of, 37–38
due diligence, conducting, 47–49
goals of, 7
resource needs, 50
success, logic of, 47–49
tensions in. See Co-innovation risk
vision, evaluating for, 50–51
Co-innovation risk, 37–54
averages, trap of, 49
defined, 6, 33, 38
digital cinema example, 66–67
“if versus when,” 53–54
managing, aspects of, 49–51, 64–65
Nokia 3G phone example, 43–46, 52–53
Compaq/HanGo, 142
Complementary innovation
examples of, 38
in value blueprint, 86
Connect.com, 90, 93
COSTAR, electronic health record (EHR), 120
Costs versus benefits, 56–61
customer approach to, 57
electronic health record (EHR) example, 123–30
innovator approach to, 57
superabrasive grinding wheel example, 60–61
total costs/relative benefits, 56–58
Creative Technology, 142, 207
Customers
costs versus benefits, 57
and innovation success, 5
in value blueprint, 85
D
Data Discman Reader, 88–89
Data streaming, 3G technology, 40–42
Dependencies, and innovation success. See Ecosystem for innovation
Diabetes treatment
inhalable insulin, 101–12
insulin pens, 107–8
Diamond Multimedia, 142
Digital cinema, 66–76
adoption chain risk, theater as, 69–70, 72–73
benefits of, 66–69, 76
co-innovation needs, 66–67
and day-and-date approach, 68
digital theater integrator, 73–76
initiatives/partnerships, 70–71, 74
innovation ecosystem for, 68–69
leadership requirements for implementation, 70–71, 76, 136
projection problem, 66–67, 69–72
storage devices, 67
success, assessment of, 75–76
3-D films, 74, 76
virtual print fee (VPF) program, 72–73, 76
Digital Cinema Implementation Partners (DCIP), 74
Digital Cinema Initiatives (DCI), 70–71
Digital rights management (DRM)
and Kindle, 97–98
and mobile technology, 46
and Sony Reader, 90
digital cinema, 68
role of, 55, 61
DLP projectors, 66
Dosnia, electronic health record (EHR), 121–22
Due diligence, with co-innovators, 47–49
E
Early movers, 140–55
advantage for, 141–42, 148–49, 153–54
failure, reasons for, 140, 143–44, 148–49, 154–55
first-mover matrix, 148–50
portable music players example, 140–47
in products versus ecosystems, 148–50, 154–55
semiconductor lithography example, 150–53
smart timing, elements of, 155–57
eBay, 206
E-books
digital imprints, 89–90
revenues, surge in, 90
sales projections (2015), 99
Ecosystem carryover, 205–7, 213–21
ecosystem reconfiguration caused by, 214–16
goals of, 194, 205, 213–14, 222
iPad, 218–21
iPhone, 213–16
successful, examples of, 205–7
Ecosystem construction sequence, 193–223
Apple example, 207–23
ecosystem carryover, 194, 205–7, 213–21
efficiency of, 205
minimum viable ecosystem (MVE), 194, 198–205
M-PESA example, 195–205
staged expansion, 194, 199–205
See also individual stages
Ecosystem for innovation
building, sequence of. See Ecosystem construction sequence
development/use, history of, 7–9
early movers, 140–55
external and internal, 79–80
as focus, importance of, 4, 6, 9, 16, 29
followership, 116–17, 132–35
and globalization, 80
lack of, Michelin PAX System, 25–29, 32–33, 56–58
leadership/leadership prism, 116–32, 135–37
reconfiguration of. See Ecosystem reconfiguration
risks in. See Innovation risks
and technology products, 52
value blueprints, 84–114
value propositions, 84
See also specific topics
Ecosystem reconfiguration, 177–90
Better Place electric vehicles (EVs), 179–90, 236–37
ecosystem carryover as impetus for, 214–16
necessity of, 29, 191–92, 227
steps/levers in, 177–78, 190–91
success, examples of, 177–79
Edstrom, Hakan, 112
Electricity delivery
electric vehicle (EV) problem, 174–75, 185
smart-grid, 175–76, 237
Electric vehicles (EVs), 165–76
battery and resale problem, 172–73, 237
charging infrastructure problem, 170–71
core challenge, 176, 182
development, companies involved, 166
driving range limitation, 169–70, 173
economic benefits, limitations, 173
ecosystem reconfiguration for. See Better Place
electric grid challenge, 174–75
historical view, 165–66
hybrids, 171
and policymakers, 166, 171
purchase price problem, 168–69
value blueprint, 168
Electronic health records (EHRs), 118–32
adoption chain for, 123–25
aggregator, need for, 130–31
benefits of, 119–20
costs versus benefits, 123–30
delayed adoption, reasons for, 124–32
development, companies involved, 120–22
early adopters, 126, 131
federal efforts, 131–32
historical view, 120–22
initial limitations, 120–21
leadership prism for, 128–32
Eli Lilly, inhalable insulin, 102, 105, 107–8
Elop, Steve, 52
Epic Systems Corporation, 122
E-readers, 88–100
early readers, 88–89
electronic ink, 90
iPad as, 100, 219
Kindle, 95–100
Sony Reader, 3, 90–95
success, market factors for, 93
Ericsson, 40, 211
Evans, Colin, 130
Execution focus
as blind spot, 3–4
goals of, 7
tensions in. See Execution risk
as traditional approach, 2–4
Execution risk
assessment of, 44
defined, 33
Michelin PAX System example, 16–35
mobile phone example, 45–46
Exubera, 102–11
annual sales projections, 105, 106
failure, reasons for, 106–12
limitations of product, 104–5, 107
pulmonary function test issue, 109–12
value blueprint, 105–8
F
Facebook, 207
Fanning, Shawn, 144
Faulu Kenya, M-PESA relationship, 196–98, 203
FedEx, 206
Fellman, Dan, 71
FireWire, 145, 146
First movers. See Early movers
Fithian, John, 72
Fluence Z.E., 184, 188
Followership, 132–35
basic requirements for, 116–17, 133
versus leadership, 117, 133
leadership assessment by, 133–35, 220–21
Ford, Henry, 166, 184
G
Gemstar, e-readers, 88–89
General Motors, electric vehicles (EVs), 166, 171
Ghosn, Carlos, 184
Globalization, and innovation ecosystem, 80
Goldwater, Chuck, 72
Google, Health, 122, 130
H
Hasbro, 205–6, 216
Hazlett, Robert, 102
Health-care industry
IT expenses of, 119
See also Electronic health records (EHRs)
Health Data Network Express, 121
Health Information Technology for Economic and Clinical Health Act (2009), 131
HealthVault, 122
Hellström, Kurt, 41
HELP, electronic health record (EHR), 120
High-definition TV (HDTV), Philips blind spot, 3, 53
Honda, electric vehicles (EVs), 166
I
IBM, electronic health record (EHR), 121
Industrial Revolution, 7
Inhalable insulin, 101–12
annual sales projections, 102, 105
as industry versus company failure, 107–8, 111–12
medical benefits of, 101–2
race to market, companies involved, 102, 105
See also Exubera
Innovation
complementary, 38, 86
costs versus benefits, 56–58
ecosystem for. See entries under Ecosystem
as strategic priority, 5
success/failure. See Innovation failure; Innovation success
traditional approach, 2–4, 194, 201–4
Innovation failure
and adoption chain risk, 6, 34–35
blind spots, 1–4
causes, schools of thought, 5
and co-innovation risk, 6, 33–35
and early movers, 140, 143–44, 148–49
electric vehicles (EVs), 165–76
electronic health records (EHRs), 118–32
and execution risk, 33–35
Exubera inhalable insulin, 102–11
Michelin PAX System, 16–35
MS Office 2007, 56–58
Nokia 3G phone, 42–46, 52–53
Philips HDTV, 3, 53
rate of, 4–5, 229
risks, confronting, 54
SaeHan MPMan, 142–44
Sony Reader, 90–95
superabrasive grinding wheel, 59–61
See also specific topics
Innovation risks
adoption chain risk, 55–78
co-innovation risk, 37–54
execution risk, 33–34
See also specific risks
Innovation success
adoption chain, logic of, 62–64
Apple, 207–23
basic requirements, 15–16
Better Place approach, 179–90
co-innovation, logic of, 47–49
digital cinema solution, 66–76
and due diligence, 47–49
and ecosystem approach. See entries under Ecosystem
Kindle, 95–100
and leadership, 5, 70–71
rate of, 228–29
and wide-lens. See Wide-lens perspective
Insulin
inhalable. See Exubera; Inhalable insulin
insulin pens, 107–8
Intel
electronic health record (EHR), 121–22
WiMAX, 133
Intermediaries
in adoption chain, 55, 61–62
as complementors, 38, 86
in value blueprint, 86
International Digital Publishing Forum (IDPF), 93
Internet, and electronic health records (EHRs), 121
iPad, 218–21
and e-book market, 100, 219
ecosystem carryover for, 218–21
market for, 218
media partners, 219–21
partner gains, fairness issue, 219–21
value blueprint, 220
iPhone, 210–17
and AT&T, 212, 214–15
App Store, 216–17
competitors, 211
ecosystem carryover for, 213–16
limitations of product, 211–12
staged expansion of, 216–17
success, reasons for, 213–19
and 3G market, 52, 211–12
timing factors, 147
value blueprint, 217
iPod, 140, 144–47
delayed entry, benefits of, 147, 156
features, 145
and iTunes, 146, 156, 164, 179, 209
staged expansion of, 209–10
success, reasons for, 144–47
timing, Jobs rationale for, 144–45, 208–9
value blueprint, 210
iTunes, and iPod success, 146, 156, 164, 179, 209
J
Jobs, Steve, 144
and iPod development, 144–47, 156, 208–10
See also Apple
Johnson Controls, 3
K
Kaiser Permanente, electronic health records (EHRs), 131
Kapoor, Rahul, 150
Keurig coffeemaker, 29
Kindle, 95–100
digital rights management (DRM) issue, 97–98
ecosystem, benefits to, 97–99
features, 96
initial weakness, 95–96
and leadership effectiveness, 136–37
pricing, 98
as service versus device, 96–97, 134–35, 164, 178–79
versus Sony Reader, 96–97, 99–100
success, assessment of, 99–100
value blueprint, 96–99
value proposition, 96–97
King, Stephen, 89
Korris, Jim, 68–69
L
Leadership
basic requirements for, 117, 133, 136
core challenge, 117
digital cinema adoption, 70–71, 76, 136
versus followership, 117, 132–35
and innovation success, 5, 70–71, 76
payback period, 117, 136
qualifying for. See Leadership prism
strength, assessment by followers, 133–35, 220–21
Leadership prism, 117–32
constructing by followers, 134
electronic health records (EHRs) example, 128–32
functions of, 117–18, 227
value proposition for, 118
Leaf, 169, 184
Lean start-up, 202n
Lechleiter, John, 107
Levin, Julian, 71
LG, 3-D TV, 53
Librié, 90
Lonie, Susie, 196–98
M
Magliano, George, 171
Mann, Alfred, 112
MannKind Corporation, inhalable insulin, 102, 105, 112
Mapping, value blueprint, 84–114
Marriott hotels, 29
Medical devices, Medtronic, 206
Medical errors, deaths related to, 118–19, 124
Medical records, electronic. See Electronic health records (EHRs)
Medication errors, deaths related to, 119
Medtronic, 206
Michelin, success of company, 16–18
Michelin, Édouard, 19
Michelin PAX System, 16–35
adoption chain questions, 64–65
adoption stage, 22–23
competition, 20
execution stage, 20–22
failure, reasons for, 24–32
features of, 17
innovation ecosystem, lack of, 25–29, 32–33
innovation strategy, 18
market need for, 19–20
military market for, 31–32
Microsoft
HealthVault, 122, 130
Office 2007, adoption lag, 56–58
Windows Phone OS, 52–53
Mines, Christopher, 143
Minimum viable ecosystem (MVE), 198–205
effectiveness, logic of, 199, 203–5
goals of, 194, 202–5, 221–22
M-PESA, 198–205
versus traditional approach, 201–4
M-Kesho, 201
Mobile phones, 39–46
first cell phone, 39
first generation, 38–39
iPhone success, 210–17
leading players, 40, 211, 214
Nokia 3G phone failure, 42–46, 52–53
payment system via. See M-PESA
profits, source of, 186
3G capabilities, 40–42
Windows Phone OS, 52–53
Model T, 166, 184
Moore’s law, 150
Mossberg, Walt, 207
Motorola, 39, 214
Moviemaking, digital methods. See Digital cinema
MP3 players. See Portable music players
M-PESA, 195–205
customer base, expansion of, 199–201
initial system problems, 196–97, 199, 203
minimum viable ecosystem (MVE), 198–205
partnerships, 196, 200–201
program components, 195–96
staged expansion, 199–205
value blueprints, 197, 198, 200
MPMan. See SaeHan MPMan
Murdoch, Rupert, 219
Mwangi, Dr. James, 201
N
Napster, 144
NEC, 40
Nespresso coffeemaker, 29
Neuvo, Yrjö, 41
Nissan, electric vehicles (EVs), 166, 169, 184
Nokia
Burning Platform memo, 52
growth of, 40, 44, 214
Microsoft partnership, 52–53
Nokia 3G phone, 42–46, 211
co-innovation risk, 43–46
failure, reasons for, 43–44, 52–53
innovation ecosystem needs, 52
introduction of, 43, 52
Nomad, 142
Nook, 100
Novo Nordisk, inhalable insulin, 102, 105, 107–8
NTT DoCoMo, 41, 43
NuovoMedia, Rocket e-reader, 88
O
Ollila, Jorma, 40
P
Palm, 207, 211
PAX System. See Michelin PAX System
PayPal, 206–7
Personal Jukebox, 142
PesaPoint, 200
Pfizer, inhalable insulin. see Exubera
Pharmaceutical innovations. See Exubera; Inhalable insulin
Philips Electronics, HDTV blind spot, 3, 53
Pickerill, Ayron, 70
Pilot approach, versus minimum viable ecosystem (MVE), 201–3
Pogue, David, 207
Portable music players, 140–47
development, companies involved, 141–42
iPod, 140, 144–47
Sony Walkman, 140–42
Pre-Scribe, 121
Product Development and Management Association (PDMA), 4–5
Production staff, role of, 61
PROMIS, electronic health record (EHR), 120
Prototype. See Value proposition
Publishing industry
electronic books. See E-books; E-readers
iPad media partners, 219–21
Pulmonary insulin. See Exubera; Inhalable insulin
R
Raikes, Jeff, 56
Rave, 142
Read, Ian, 111
Reidy, Carolyn, 90
Renault, and Better Place, 184–85, 238, 240
Research in Motion, 211
Resources, and co-innovation, 50
Retailers, role of, 55, 61
RFID (radio frequency ID) chips, 133
Ricci, Dr. Russell, 125
Rio PMP300, 142
Rocket e-reader, 88
S
SaeHan MPMan, 140–44
failure, reasons for, 142–44
features, 142
Safaricom, mobile banking joint venture. See M-PESA
Samsung, 40, 207
Scaling, pilots, difficulty of, 202–3
Semiconductor lithography, 150–53
functions of, 150–51
goals of, 152
innovation ecosystem for, 151–53
Sensory Science, 142
Sklyer, Dr. Jay S., 101
Smart-grid, 175–76
SoftBook, 88
Software
MS Office 2007, adoption lag, 56–58
and 3G technology, 46
Sony
e-reader. See Sony Reader
portable music players, 140–42
3-D TV, 53
Sony Discman, 142
Sony Pressman, 141
Sony Reader, 90–95
and Connect.com, 90, 93
Data Discman Reader, 88–89
failure, reasons for, 3, 93–95, 99–100, 178
features of, 90–91
in Japan, failure of, 90
versus Kindle, 96–97, 99–100
value blueprint, 91–95
value proposition, 90–91
Sony Walkman, early-mover advantage, 140–41
Sortais, Thierry, 17
Staged expansion, 199–205
goals of, 194
iPhone, 216–17
iPod, 208–10
M-PESA, 199–205
Stringer, Sir Howard, 90
Superabrasive grinding wheels, 59–61
benefits of, 59–60
costs versus benefits problem, 60–61
Suppliers
supply chain, managing, 8–9
supply chain focus, 84
in value blueprint, 85
T
Tachikawa, Keiji, 41
Technology innovations
ecosystem, necessity of, 52
timing as crucial, 147, 154–56
See also specific areas/products
Telecine scanner, 67
Television
HDTV, Philips failure, 3, 53
3-D, 53
Tesla Roadster, 170
Thomsen, Mads Krogsgaard, 107
3-D technology
films, 74, 76
television, 53
3G mobile technology
capabilities of, 40–42
co-innovation needs, 42
corporate expectations, 41–42
execution risk, 45–46
handsets, complexity of, 42–43
market, beginning of, 52
network, first, 41
Nokia 3G phone failure, 42–46, 52–53
spectrum rights, 41, 42
Timing
and adoption chain risk, 77
Apple success, 144–45, 147, 208–9, 211
blind spot, 140
and co-innovation, 51, 53–54
and early movers, 140–55
ecosystem construction sequence, 193–223
payback and leadership, 117, 136
smart timing, elements of, 155–57
and technology products, 147, 154–56
Tires, automobile
markets for, 25–26
run-flat. See Michelin PAX System
tire pressure monitoring systems (TPMSs), 30, 34
Toshiba, 3-D TV, 53
Townsend, Charles H., 219
Toyota, electric vehicles (EVs), 166, 188
Toy Story, 74
2G mobile technology
capabilities of, 39–40
execution risk, 45
U
U.S. Food and Drug Administration (FDA), Exubera approval, 103–4, 108–9
V
Value blueprints, 84–114
for Amazon Kindle, 96–99
basic requirements, 84–85
communication aspects, 113
constructing, steps in, 85–87
for electric vehicles (EVs), 168, 181
for Exubera inhalable insulin, 105–8
functions of, 85, 87, 112–13
for inhalable insulin, 101–12
for iPad, 220
for iPhone, 217
for iPod, 210
map, example of, 87
for M-PESA, 197, 198, 200
necessity of, 84–85, 100, 112–14, 226–27
for Sony Reader, 91–95
as team-based effort, 113–14
updating, 87
Value chains, focus of, 84
Value proposition
defined, 85
elements needed for. See Value blueprints
for leadership prism, 118
and minimum viable ecosystem (MVE) approach, 203–4
Vertical integration, pros/cons of, 8, 177
Veterans Health Administration (VHA), electronic health records (EHRs), 131
Virtual print fee (VPF), 72–73, 76
Vision
and co-innovation, 50–51
value proposition as, 85
VISTA electronic record system, 131
Vodafone, mobile banking joint venture. See M-PESA
W
Wachter, Dr. Robert, 119
Wal-Mart, RFID chips, 133
Weed, Larry, 120
Whitney, William C., 165–66
Wide-lens perspective
components of, 7, 158–59, 233
ecosystem and innovation. See entries under Ecosystem
necessity of, 229–31
odds for success, creating with, 228–30
potential problems, productive approach to, 228
tool kit, 226–28
WiMAX, 133