To Manage Innovation, Learn the Architecture

Abstract

OVERVIEW:Innovation is often perceived as an unmanageable process. At best, sophisticated selection procedures can impose discipline and guidance so as to contain costly errors. The research reported here, conducted with 923 chief technical officers and senior R&D managers, yields a more nuanced view. Innovation becomes manageable when managers move away from prescriptions that view the process as uniform and recognize that different rules and practices apply in different contexts. The main argument presented here is that product architecture has become a key element of innovation strategy. Innovation focuses not only on stand-alone items but increasingly on systemic as well as modular products and services. Product architecture interacts with market dynamics, which leads to distinct “games of innovation,” seven of which have been identified empirically. These games are not predetermined but leave ample room for creative actions.

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