Management of Technology and Innovation in Japan (eBook)

Preface and Introduction 6
Table of Contents 20
List of Contributing Authors 22
Part I: Strategic Aspects 25
Designing the Product Architecture for High Appropriability: The Case of Canon --- Kiyonori Sakakibara and Yoichi Matsumoto 27
The Issue of Appropriability 27
Characteristics of the Business Performance of Canon 28
Cartridge Technology that Sustains Copier’s High Profitability 29
Analysis of the Ink Jet Printer Business in Japan 32
Concluding Remarks 47
Appendix 1: The List of Product Specifications 49
Appendix 2: The Icons’ List of Exchange Cartridge 50
References 50
Case Study Shimano: Market Creation Through Component Integration --- Akira Takeishi and Yaichi Aoshima 53
Introduction 53
Outline and History of Shimano Bicycle Component Business 55
Shimano’s Position in Bicycle Parts – “The Intel of the Bicycle Industry” 56
History 59
History of Product Innovation 60
Shimano’s Strategy: Creating Markets Through Component Integration 68
Production Technology and Market Creation 69
Conclusion: Searching for New Growth Opportunities 71
Invisible Dimensions of Innovation: Strategy for De-commoditization in the Japanese Electronics Industry --- Ken Kusunoki 73
Digitization, Modularization, and Commoditization 73
Visibility of Innovation Dimension and Its Dynamics 75
Limits of Visible Innovations 78
Invisible Innovations: An Alternative Strategy 82
The Visibility Trap 87
Seeing and Showing Invisible Dimensions 90
Conclusions 95
The Customer System and New Product Development: The Material Supplier's Strategy in Japan --- Junichi Tomita and Takahiro Fujimoto 97
Introduction 97
Customer System 98
Case Study – Development of LUMIFLON at AGC 101
Management of Customer System 105
References 107
Part II: Process Aspects 109
The Japanese Know-Who Based Model of Innovation Management – Reducing Risk at High Speed --- Sigvald J. Harryson 111
From Time-Based Competition to Time-Based Innovation 111
Introducing a Know-Who Based Approach to Networking 114
Canon’s Know-Who Based Approach to Commercializing a Disruptive Display Technology 119
Analyzing the Canon Case with Further Illustrations of Know-Who Based K& I Management
References 132
The Domestic Shaping of Japanese Innovations --- Marian Beise 137
Introduction 137
Conclusions 161
References 162
Exploiting “Interface Capabilities” in Overseas Markets: Lessons from Japanese Mobile Phone Handset Manufacturers in the US --- Masanori Yasumoto and Takahiro Fujimoto 167
Introduction 167
Background 168
Distinction Between Interface Capabilities and Relational Knowledge 169
Overview of Japanese Mobile Phone Manufacturers 172
Handset Development Strategy of Japanese Manufacturers 175
Japanese Mobile Phone Manufacturers in the US 176
Sanyo 178
Discussion 185
Conclusion 186
Acknowledgement 187
References 187
“Fuzzy Front End” Practices in Innovating Japanese Companies --- Cornelius Herstatt, Birgit Verworn, Christoph Stockstrom, Akio Nagahira, and Osamu Takahashi 191
Introduction 191
Study 191
Results 194
Comparing Successful and Unsuccessful Companies 199
Conclusions 205
References 205
Implementing Process Innovation – The Case of the Toyota Production System --- René Haak 209
Introduction 209
Technology and Knowledge Transfer 211
The Company: A Whole System 212
Tools for Solving Problems 217
Kaizen – Core of Toyota Production System and Embodiment of Organizational Learning 221
References 222
Part III: Organizational Aspects 229
Reorientation in Product Development for Multiproject Management: The Toyota Case --- Kentaro Nobeoka 231
Introduction 231
Multi-project Management: Framework 233
Traditional Shusa Organization at Toyota 235
Organizational Problems 236
Change in the Competitive Environment 239
Establishment of Development Centers 241
Reduction of Functional Engineering Divisions 243
Reduction of the Number of Projects for Each Functional Manager 245
Roles of the Center Head for Multiple Vehicle Projects 245
Establishment of Planning Divisions in Each Center 246
Hierarchical Organization of Chief Engineers 247
Roles of Center 4 248
Outcomes of the Organizational Changes 249
Project Integration Through Streamlined Structure 249
Multi-Project Integration Within a Center 251
Potential Problems of the Center Organization 253
Discussion and Conclusion 254
References 257
Suppliers’ Involvement in New Product Development in the Japanese Auto Industry – A Case Study from a Product Architecture Perspective --- Dongsheng Ge and Takahiro Fujimoto 259
Introduction 259
Architectural Attributes of Auto Parts 261
Case Study on Pattern Choices of Suppliers’ Involvement into New Product Development 263
Discussion 268
Conclusion 271
References 271
NPD-Process and Planning in Japanese Engineering Companies – Findings from an Interview Research --- Cornelius Herstatt, Christoph Stockstrom, and Akio Nagahira 273
Introduction 273
The Study 274
NPD Project Processes 275
General Planning Activities in NPD 279
Project-Related Planning 280
Changes 283
Project Management 285
Conclusions 286
References 287
Part IV: Cultural Aspects 291
Japanese New Product Advantage: A Comparative Examination --- Cheryl Nakata and Subin Im 293
Introduction 293
Conceptual Model 294
Research Hypotheses 295
Methodology 301
Measures 302
Model Estimation and Results 303
Main Findings 304
Discussion 305
Managerial Implications 306
Limitations and Research Implications 307
Appendix: Measurement Items and Coefficient Alphas (Japan/Korea) 308
References 309
Differences in the Internationalization of Industrial R& D in the Triad --- Guido Reger
Introduction 313
Methodology 314
International Generation of Research and Technology 322
Conclusions 330
Acknowledgment 333
References 333
Global Innovation and Knowledge Flows in Japanese and European Corporations --- Alexander Gerybadze 335
Global Innovation and Changing Patterns of Knowledge Production 335
Downstream Innovation and New Sources of Knowledge 338
Home-Base Augmenting vs. Home-Base Exploiting R& D Strategies
Engineering Innovation and Knowledge Flows Within MNCs 343
Lead-Market Innovation and Knowledge Flows Within MNCs 345
Appropriate Mechanisms of Transnational Knowledge Flows: Comparing European and Japanese MNCs 347
References 349
Reducing Project Related Uncertainty in the “Fuzzy Front End” of Innovation – A Comparison of German and Japanese Product Innovation Projects --- Cornelius Herstatt, Birgit Verworn, and Akio Nagahira 352
Introduction 352
Study 355
Results 359
Conclusions 369
Appendix: List of Projects 371
References 373
Part V: Implementational Aspects 377
From Practice: IP Management in Japanese Companies --- Yonoshin Mori 379
Rapidly Changing IP Management Environment 379
Objective of IP Management 384
Leading Examples of IP Management at Individual Companies 391
Theory for IP Organizational Ability 397
Hot IP Topics Now Faced by Japanese Companies 404
MoT: From Academia to Management Practice – The MoT Implementation Case in a Traditional Japanese Company --- Gaston Trauffler and Hugo Tschirky 409
Introduction 409
The Initial Position 409
Creating Transparency 410
Forming Strategically Manageable Technology Entities 413
Designing a Holistic and Integrated MoT Process 415
Designing Organizational Company Structures 420
Customizing the Process and Accelerating Its Implementation 422
Summary and Conclusion 424
References 426
Index 427

Japanese New Product Advantage: A Comparative Examination (p. 269-270)

Cheryl Nakata and Subin Im

Introduction

Over the last few decades, Japanese companies have been at the cusp of innovation, introducing new products to receptive buyers throughout the world. Toyota’s Prius, a hybrid gas-electric car, and Casio’s Exilim, a palm-sized digital camera, are just a few of the products recently developed and successfully marketed from Japan. The key reason for these products’ popularity appears to be built-in advantage, or superiority, over rival offerings. For example, the Prius saves on fuel costs, emits almost no fumes, requires little maintenance, and sells at an affordable price. Despite such successes, Japanese companies are unable to rest on any laurels.

Nipping at their heels are South Korean firms, which are vying with Japanese businesses in their traditionally strong sectors of consumer electronics and automotives. Samsung is perhaps the most notable challenger. The firm has introduced a flood of new products in the last several years, winning design accolades and many new customers for its premium cell phones, plasma flat-screen TVs, and ultra- thin computer monitors, among other innovations. In several of these categories, the firm is the global market leader or is a close second in sales. Along with several other companies based in South Korea (referred hereafter as Korea), Samsung is making great strides in innovation, mastering the ability to create advantageous new products.

Given this dynamic rivalry between Japanese and Korean businesses, we thought it timely to investigate new product advantage comparatively across the two countries. Specifically, we pursue these questions: 1) "how do Japanese companies create new product advantage and in what ways may the approach differ or be similar to that of Korean counterparts?" and 2) "does greater advantage necessarily lead to higher sales, profitability, and market share for Japanese companies, i.e. stronger new product performance, and is the relationship between advantage and performance different or the same for Korean firms?"

It is interesting to note that despite the significance of the Japanese and Korean economies, whose combined GNP of $4.5 trillion ranks only second after that of the U.S., there is limited understanding of how these countries have come to excel in export-led growth, particularly through the sales of new products to foreign markets. Our search of the literature indicates few investigations have been conducted on new product advantage among Asia-based businesses. There is only one published study on new product development in Korean enterprises (Mishra, Kim and Lee 1996), but it is not specific to the topic of advantage. In other words, the above questions have not been previously addressed as best we can tell. Hence, we believe our study will be of interest and value to managers and researchers who are aware of, and wanting to fathom, the tremendous rise of innovation capabilities outside the West.

We began our study by proposing a conceptual model of new product advantage, with differences and similarities noted between Japanese and Korean approaches in terms of drivers and performance outcomes. We then tested the model by conducting a survey of over 200 new product development managers in Japanese and Korean firms. In the following sections, we present the conceptual model, followed by the research hypotheses. Thereafter, we describe the methodology and findings, and conclude with implications for managers and researchers.