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Unrelenting Innovation |
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Copyright |
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Contents |
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Figures and Tables |
13 |
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Foreword |
15 |
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Chapter 1 Why Incumbents Fail |
21 |
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Why Incumbents Fail to Innovate Unrelentingly |
23 |
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Paradox of the Incumbent’s Curse |
23 |
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Telling Examples |
25 |
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The Preeminence of Culture |
27 |
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Traits for Innovation |
30 |
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Practices for Innovation |
32 |
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Culture as a Primary Explanation |
35 |
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Basis for the Book |
37 |
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Conclusion |
39 |
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Chapter 2 Willingness to Cannibalize Successful Products |
43 |
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Why Incumbents Are Reluctant to Cannibalize Products |
44 |
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Organizational Factors |
45 |
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Why Willingness to Cannibalize Is Important |
48 |
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Finite Growth of Current Products |
48 |
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Increasing Rate of Innovation |
48 |
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Limitations of Acquisitions |
51 |
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Challenge of Technological Change |
53 |
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Understanding Technological Evolution |
53 |
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On Which Level to Innovate? |
54 |
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What Is the Pattern of Evolution? |
55 |
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On Which Dimension of Performance to Focus? |
57 |
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Blinded to an Opportunity: Microsoft Keywords? |
59 |
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Crippled by Fear of Piracy: Sony MP3 Player |
61 |
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Decline of an Innovator: Eastman Kodak |
65 |
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A Cycle of Cannibalization: Gillette's Innovations in Wet Shaving |
69 |
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Late Move: HP Tablet |
73 |
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Conclusion |
74 |
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Chapter 3 Embracing Risk |
79 |
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Sources of Risk: Innovation's High Failure Rate |
79 |
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The Reflection Effect: Asymmetry in Perceived Risk |
83 |
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The Hot-Stove Effect: Learning from Failure |
85 |
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The Expectations Effect: Hope Versus Reality |
88 |
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Innovation's Gain-Loss Function: Type 1 and 2 Errors |
89 |
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Case Histories |
95 |
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Gambling on an Embryonic Market: Toyota's Prius |
95 |
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Initial Stage: Striving for Kakushin (‘‘Rapid Innovation’’)—Aim High |
96 |
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Experimentation—Undaunted by Failure |
99 |
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Slow Takeoff—A Testament of Toyota’s Faith and Patience |
100 |
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Eventual Success |
102 |
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Gambling on Growth: Amazon.com |
104 |
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Gambling on Vision: Facebook |
110 |
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Hatch of an Idea in a Dorm Room |
111 |
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Bet on Silicon Valley |
112 |
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Risk-Loving Hacker Culture |
114 |
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News Feed Crisis |
117 |
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To Sell or Not to Sell |
117 |
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Opening the Site to Third-Party Applications |
121 |
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Risk Rewards |
122 |
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Gambling on Scale: Federal Express |
123 |
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Conclusion |
126 |
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Chapter 4 Focusing on the Future |
129 |
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Why Future Focus Is Tough |
131 |
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Hot-Hand Bias |
131 |
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Availability Bias |
134 |
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Paradigmatic Bias |
136 |
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Commitment Bias |
139 |
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Planning for the Future |
141 |
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Predicting and Managing Takeoff |
142 |
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Targeting Future Mass Markets |
146 |
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Predicting Technological Evolution |
149 |
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Analyzing Emergent Consumers |
154 |
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Conclusion |
158 |
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Chapter 5 Incentives for Enterprise |
161 |
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Traditional Incentives: Winning Loyalty |
162 |
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Asymmetric Incentives: Turning Failure into Success |
163 |
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Making Incentives Work: Economics and Psychology of Incentives |
168 |
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Moral Incentives |
170 |
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Social Incentives |
171 |
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Fairness of Incentives |
172 |
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Framing Incentives |
174 |
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Power of Incentives: IBM's Transformation |
175 |
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Incentives for Enterprise: Google |
177 |
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Perks, Options, and Awards |
178 |
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Time Off to Explore: Structure and Fruits of 20% Off |
179 |
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Challenge of Talent Retention |
182 |
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Incentives for Loyalty: General Motors |
183 |
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Technology Troubles |
184 |
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Labor and Union Priorities |
186 |
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Incentives for Innovation: 3M |
188 |
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Structuring Team Incentives: IBM's Learning from Online Gamers |
191 |
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Conclusion |
193 |
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Chapter 6 Fostering Internal Markets |
197 |
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Characteristics of Markets |
201 |
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Markets as Idea Generators |
202 |
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Markets as Talent Pools |
204 |
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Markets as Efficient Resource Allocators |
205 |
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Cascades and Bubbles |
207 |
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Cutthroat Competition |
207 |
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Lack of Cooperation |
208 |
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Failure |
209 |
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Duplication |
209 |
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Lack of Focus |
211 |
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Implementing Internal Markets |
212 |
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Managing Internal Markets |
219 |
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Incentivizing Internal Markets |
219 |
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Setting Up Internal Markets |
221 |
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Conclusion |
223 |
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Chapter 7 Empowering Innovation Champions |
225 |
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Luck Versus Innovation Champions |
226 |
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Characteristics of Champions |
228 |
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Testing Luck |
230 |
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Champions Versus Teams |
232 |
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Champions at the Top Versus the Bottom |
234 |
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Distributed Champions: Google's ``Young Turks'' Program |
236 |
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Serial Champion: Roger Newton |
238 |
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Championing Mass Market of the Future: Tata Nano |
242 |
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Championing a Music Revolution: Apple iPod |
247 |
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Mobilizing an Organization for Innovation: Sony Walkman |
251 |
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Steps in Empowering Champions |
255 |
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Conclusion |
256 |
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Chapter 8 Culture Versus Alternate Theories: Arguments and Evidence |
257 |
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Micro-Theories |
258 |
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Wall Street Effect |
258 |
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Size Effect |
261 |
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Disruptive Technology Effect |
264 |
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S-Curve Effect |
267 |
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Macro-Theories |
270 |
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Macro-Theories in a Nutshell |
271 |
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Refutation of Macro-Theories |
273 |
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Conclusion |
280 |
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Notes |
283 |
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Bibliography |
309 |
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Acknowledgments |
327 |
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The Author |
329 |
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Index |
331 |
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