last two weeks: Basic conceps, Schumpeter, market push and pull, … papers:
compare case with relative competitors!
Don't be too ambitious : focus
Part 2: FIRMS
main actor in innovation dynamics
small, entrepreneurial firm
large established firm
SL2 Google Glasses: enhanced glasses: connect to internet, show information Does this make sense?
Where do you see a need or application? Where is the market? SL3 Motorola: already on the market
Headset with camera (webcam)
Used for service technicians eg. repair an airplane and you cannot bring in tablets or anything but with these glasses they can call into the planes computer or look up info But people sit in the car with it and drive? Do what with it? Why are we doing this?
Firm seeks profit
Always ask yourself if sth will be profitable
Introducing sth novel and fancy is cool but secondary to the shareholders SL5 Apple
Share of google $1000, Apple’s share $550
P/E ratio of Apple = 12 shares still pretty cheap (less than 10: company in trouble/bargain) – 10-20 = reasonable - +20 totally overpriced OR high expectations Apple’s value < successfully introducing new products to the market SL7: because of the success of iPods and iTunes, people also start to buy more apple computers Eg. iPhone only introduced 5 years ago but biggest sales
iPod dying out
iPad really growing (taking ove place of iPod)
Google: more than 80% of revenue still < search engine advertising and optimizing Puzzling case
Maps, Earth, Car, Glasses
A lot of R&D but you don’t see it return in revenues
SL8 Innovation at the firm level: Building blocks
Ideas + exploit them commercially ...