Mastering the Dynamics of Innovation

by James M. Utterback

Book Overview

The author presents a compelling look at how innovation transforms industries, raising the fortunes of some firms while destroying others. The book draws on the rich history of innovation by inventors... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0875843425
• ISBN13: 9780875843421
• Release Date: January 1994
• Publisher: Harvard Business Review Press
• Length: 253 Pages
• Weight: 1.35 lbs.
• Dimensions: 1.3" x 6.4" x 9.5"

Customer Reviews

Scholarly analysis in an eminently readable enjoyable book

James Utterback has achieved the difficult goal of taking careful scholarship, drawing useful conclusions and presenting the whole package in a highly enjoyable book. He makes a major contribution by distinguishing between product innovation and process innovation and shows how and why the former is likely to come from outside the established industry players, while the latter is more likely to come from inside.In the process he reaches back into history and covers industries ranging from pond ice to memory chips. Combining his explanation with concepts with Geoffrey Moore's "Crossing the Chasm" provides a powerful means of understanding where innovation comes from and what the barriers are to its success. Utterback's book goes beyond that. It also calls into serious question the idea (posited by Moore and others) that today's "high tech" cycle of innovation is fundamentally different from earlier innovative cycles in other industries. All in all, Utterback uses industrial history in a low-key, fact-based book that shines a clear, bright light on what drove yesterday's technology developments -- and today's.

Refreshing and Innovative Perspectives

Utterback explains "how companies can seize opportunities in the face of technological change." There are dozens (hundreds?) of other books on the same subject, notably those written by Geoffrey A. Moore. I rate this book so highly because it is exceptionally well-organized and well-written, because it examines several offbeat subjects (eg the development of the typewriter and the evolution of the typewriter industry, the development of the incandescent electric light), and because Utterback focuses so intensely -- and so effectively -- on real-world situations in which the "dynamics of innovation" are manifest. This book is very informative but also great fun to read. (Those who enjoy it as much as I did are urged to read both The History of Invention and The Lever of Riches.) Chapter 4 revisits the the dynamics of the innovation model (Figure 1-1) and then in Chapter 5, Utterback shifts his attention to developments within the plate glass manufacturing industry. In Chapter 6, he examines the innovation differences between assembled and nonassembled products. Subsequent chapters sustain the discussion of "the power of innovation in the creation of an industry" and then, in Chapter 9, Utterback "draws together some of the lessons of earlier chapters and academic research to consider the relationship between the behaviors and strategies of firms with respect to technological innovation and long-term survival." He concludes his book (in Chapter 10) by addressing "the perennial management issue of how corporations can renew their technology, products, and processes as a basis for continued competitive vitality." It is obvious to all of us that even the strongest product and business strategy will eventually be overturned by technological change. Ours is an age in which change is the only constant. Therefore, as Utterbach explains so carefully and so eloquently, the challenge is to accept the inevitability of change which results from technological innovation ("discontinuities") and to sustain a commitment to cope effectively with such change. Only such a commitment "will win the day."

Technological Change: Peril or Opportunity?

Utterback explains "how companies can seize opportunities in the face of technological change." There are dozens (hundreds?) of other books on the same subject, notably those written by Geoffrey A. Moore. I rate this book so highly because it is exceptionally well-organized and well-written, because it examines several offbeat subjects (eg the development of the typewriter and the evolution of the typewriter industry, the development of the incandescent electric light), and because Utterback focuses so intensely -- and so effectively -- on real-world situations in which the "dynamics of innovation" are manifest. This book is very informative but also great fun to read. (Those who enjoy it as much as I did are urged to read both The History of Invention and The Lever of Riches.) Chapter 4 revisits the the dynamics of the innovation model (Figure 1-1) and then in Chapter 5, Utterback shifts his attention to developments within the plate glass manufacturing industry. In Chapter 6, he examines the innovation differences between assembled and nonassembled products. Subsequent chapters sustain the discussion of "the power of innovation in the creation of an industry" and then, in Chapter 9, Utterback "draws together some of the lessons of earlier chapters and academic research to consider the relationship between the behaviors and strategies of firms with respect to technological innovation and long-term survival." He concludes his book (in Chapter 10) by addressing "the perennial management issue of how corporations can renew their technology, products, and processes as a basis for continued competitive vitality." It is obvious to all of us that even the strongest product and business strategy will eventually be overturned by technological change. Ours is an age in which change is the only constant. Therefore, as Utterbach explains so carefully and so eloquently, the challenge is to accept the inevitability of change which results from technological innovation ("discontinuities") and to sustain a commitment to cope effectively with such change. Only such a commitment "will win the day."

'Dynamics of Innovation' continues to

The existing reviews really get to the heart of the matter. I can only add that this book continues to provide a powerful framework for analyzing technical innovation - the process and maturation of that innovation within a market. As I survey the rapid growth of trading hubs/net market makers in the industrial procurement space, I am struck by the similarity to the examples in the book. The hyper growth in this space sets the stage for the inevitable shakeout and establishment of the dominant model - yet to be determined. It is exciting to watch the market mature, with the knowledge that the changes are part of a cycle which can be comprehended and has repeated itself in multiple industries. Utterback provides a powerful framework with which technological innovation can be understood. Thank you.

A compelling account of technology revolutions

This is a fascinating and chilling account of technological innovation. It belongs on the recommended list of technology managers and staff alike. Utterback marshals compelling case histories that provide the objective foundations for more popular accounts of technology formation such as Geoffrey Moore's CROSSING THE CHASM (1). We gain insight into why it's so crowded at the bottom. Reasons exist in abundance why firms that epresent established technology are the least likely to perceive the threat represented by radical innovation. It is a slight exaggeration to say Utterback makes current management sound like the last Czar of Russia praising the happiness of the serfs. Yes, perhaps the serfs were happy; but the Bolsheviks weren't. In short, the technological discontinuity is not going to come from established competitors. All the electric typewriter manufacturer's were "taken down" by the Word Processor. But how then to recognize the radical innovation? The key to Utterback's argument is the idea of a "dominant design" of a technology It forms the center of a network of system features, user habits, collateral assets such as brand image, market channel and customer switching costs. By definition, the dominant design wins the market. It is the pattern to which both competitors and incremental innovators must adhere to if they aim at significant following in the current market. It is what radical innovation over-throws. Many case histories are provided. Each of the chapters illuminates an aspect of the dynamics of innovation by drilling down into a specific example. Thomas Edison came late to the race to produce a commercial electric lamp. He succeeded through ingenuity and systematic thinking. From the start, he planned for scalability, aiming to deliver electricity through the very illuminating gas conduits that formed his major competitors' delivery system. He also laid down a network of patents as he worked; and legally pursued those who tried to steal his mechanisms. Utterback's other examples include the Qwerty typewriter key board (an example as powerful as it is elegant and simple), the BM-compatible PC, the Cray computer, the INTEL-based massively parallel computer, the ball-point pen, the float process of making plate glass, celluloid (Kodak) film, the incandescent light bulb, the INTEL x86 chip, and a dozen other engaging from the history of economics. A fascinating account of cutting natural ice from the Lakes of New England in the mid 1800s should have a sobering - I almost wrote chilling -- effect on the complacent technology manager. Here radical innovation means one thing: refrigeration. Paradoxically, the ice industry, which efficiently transported harvested ice as far away as India, was unable to envision refrigeration. Industry outsiders were the ones. Why? According to Utterback, industry insiders have a heavy investment, both technological and emotional, in