pursue multiple objectives
to meet them we will probably need more than one project
organize R&D internally (& externalize) + look beyond your internal R&D in order to be effective (= internalize external tech) = R&D collaboration
eg. Douwe Egberts x Phillips Senseo
neither could have done it on their own
2 revenue streams
the coffee pads
patent on the pads install base secure income from pads part of the profit of each also goes to the other partner = joint business model eg. XBOX = Microsoft
hard- and software gaming console
why does this make sense?
If software company wants to create this type of product, does it go alone or not? You need hardware design and production capabilities; Microsoft did not have this Look for a partner: Flextronics
Good diversification move of Microsoft? Logic/normal?
Late/mid 90s: ubiquitous computing/ambient intelligence = Intelligence around us wherever we are might happen Microsoft realized this What will be the nexus of all this intelligence?
Phillips expected remote control - But it didn’t happen quite as extensively as expected Nokia said mobile phone
Sony said gaming console: it is capable of anything and it’s already there So Microsoft got nervous: could be a serious threat that there were a lot of these consoles (PS) installed at homes that do not run on Microsoft if that became the standard for intelligent ambiance So they moved into it: want an install base in gaming consoles And needed a partner for that
Eg. Apple iPod = rebirth of apple
Normally: 2-3 years to develop the product from the idea
Apple: less than 10 months
How did they do that?
90% of components do not come from apple
why move into consumer goods? How does this make sense for Apple? They were a...