In industries where innovation is highly distributed, companies often try to market advantage by coordinating their product introductions with those of other companies in the hope of generating increased sales and customer satisfaction to gain. The synchronization may be a number of forms, and the cost of implementation is very different. In addition, keep a part of a company’s operations with those of another synchronized to present significant challenges to control. The challenges are magnified whe … Read more »

In industries where innovation is highly distributed, companies often try to market advantage by coordinating their product introductions with those of other companies in the hope of generating increased sales and customer satisfaction to gain. The synchronization may be a number of forms, and the cost of implementation is very different. In addition, keep a part of a company’s operations with those of another synchronized to present significant challenges to control. The challenges are increased when the detection of the advantages of the synchronism, depends on many other players in the industrial network. Understand what it takes to coordinate critical activities in industrial networks can be very helpful, especially in technology-intensive industries in which innovations spread and companies are strategically interdependent. Sony and Microsoft, the leading manufacturer of video game consoles, for example, often try to coordinate product releases with game makers like Electronic Arts. The network of relationships between companies within a sector plays an important role in the manufacture of synchronization. Such relationships can range from intensive cooperation on market alliances with less interaction. Synchronize their product development company working in three different ways: through the proactive planning of synchronicity with a few other partner organizations by responding to signals from other companies or by combining these two approaches, to create a hybrid approach. In industries that produce highly complex products, industry leaders can overcome the weaknesses of the planned and reactive synchronization by mixing the two approaches. This includes proactive engagement with the company or companies that need to coordinate with and absolutely “signaling” their intentions to a select group of companies, in the hope that the wider network of companies will respond.
«Hide

from
Jason P. Davis
Source: MIT Sloan Management Review
8 pages.
Release Date: 1 July 2013. Prod #: SMR458-PDF-ENG
Enter the value Synchronized innovation HBR case solution

[related_post themes="flat"]