Boundary Management (eBook)

Mitsuru Kodama is a Professor of Information and Management in the College of Commerce and Graduate School of Business Administration at Nihon University. Prior to joining University, He has been working as a marketer, planning engineer at KDDI, NTT and NTT DoCoMo, innovation management researcher in Community Laboratory around 20 years. He holds the B.S., M.S. and Ph.D. degrees in electrical engineering from Waseda University, Tokyo, Japan.

Preface and Acknowledgement 5
Contents 7
1 Dynamic View of Strategic Management 10
1.1 Dynamic Competitive Environments and New Business Models 10
1.1.1 New Competition and Strategic Positioning 10
1.1.2 Business Ecosystems as New Competitive Rules 12
1.2 The Need for Dynamic Strategic Management Theory 14
1.3 Strategic Management as Practice Process 14
1.4 Boundaries Congruence Through Boundary Management 16
1.5 The Aims and Structure of This Book 19
References 22
2 Theoretical Framework of Dynamic Strategic Management Through Boundary Management 24
2.1 The Optimal Design of Corporate Boundaries 24
2.2 The Concept of Business Architecture 25
2.2.1 Strategy as Business Architecture 27
2.2.2 Technology as Business Architecture 27
2.2.3 Organization as Business Architecture 28
2.2.4 Operation as Business Architecture 31
2.2.5 Leadership as Business Architecture 31
2.2.6 Dynamic Process of Business Architecture 31
2.3 Strategic Management in a Dynamic Environment 31
2.3.1 Positioning- and Resource-Based Views 33
2.3.2 Environment Adaptive Strategy 34
2.3.3 Environment Creation Strategy 39
2.4 Managing Corporate Innovation Streams 40
References 42
3 Developing New Business Models Through Dynamic Boundary Management: Case Studies of Sony and NTT-DATA 45
3.1 Innovation by Internal Corporate Venture (ICV) 45
3.2 Sony: A Case Study 46
3.2.1 Starting Up a New Business 46
3.2.2 Integrating Knowledge from Different Fields Through Network Concepts 50
3.2.3 SWS and SWS Network Creation 51
3.3 NTT-DATA: A Case Study 54
3.3.1 New Business Model Development 54
3.3.2 Building Flattened Organizations and Organic Networks 55
3.3.3 Construction Innovations 58
3.3.4 Marketing Innovations 60
3.3.5 Content Innovations 62
3.4 Gathering and Integrating Distinct Creative and Practical Knowledge 64
3.5 Optimizing Boundaries Congruence for Business Architecture 66
3.5.1 Optimizing Boundaries Congruence in SCE 66
3.5.2 Optimizing Strategic Framework Through Boundaries Congruence in NTT-DATA 68
References 69
4 Developing New Broadband Services by Dynamic Collaboration Through Strategic Boundary Networks: A Case Study of NTT DoCoMo 71
4.1 Innovation Through Synthesis of Exploration and Exploitation 71
4.2 Case Study: Mobile Phone Business Innovation 73
4.2.1 DoCoMo's Innovations 74
4.2.2 Phase 1 (1992--1998): The Challenge of Voice Communication 74
4.2.3 Phase 2 (1999--2004): The Challenge of Multimedia 77
4.2.3.1 Forming ''Small-World Networks'' (SWN) Within DoCoMo 79
4.2.3.2 Forming ''Exploratory Networks'' with CPs 80
4.2.4 Phase 3 (2004 to Present): The Challenge of a Lifestyle Tool 86
4.3 Forming Small-World Networks Within the Company 89
4.4 Network Integrative Competences Through Leadership Teams 90
4.5 The Dynamic Boundaries Congruence of Business Architecture 93
References 98
5 New Knowledge Creation Through Leadership-Based Strategic Community 100
5.1 Introduction 100
5.2 Networks of Strategic Communities 100
5.3 Summary of an In-depth Case 103
5.3.1 Current Status and Issues in the Field of Veterinary Medicine in Japan 103
5.3.2 Formation of Strategic Community and Networked Strategic Communities 105
5.3.3 Innovation in New Knowledge Creation 112
5.4 Results and Discussion 112
5.4.1 Characteristics of Networked SCs 113
5.4.2 Synthesizing Capability Through Dialectical Leadership of Community Leaders 115
5.5 Managerial Implications: Toward the Realization of Strategic Community-Based Organizations 117
5.6 Conclusion 119
References 119
6 New Theoretical Framework and Insights Derived from Comparative Case Studies 122
6.1 New Business Creation by Transformation 122
6.1.1 The Importance of Change Management 122
6.1.2 Issues in Promoting New Business: Non-congruence Among Individual Management Elements 123
6.2 Comparative Case Analysis and New Insights 127
6.2.1 Congruence of Strategy and Technology 128
6.2.2 Congruence of Strategy and Organization 129
6.2.3 Congruence of Strategy and Operation 130
6.2.4 Management and Leadership 130
6.3 Crucial Elements for Boundaries Congruence and Successful Innovation 132
6.3.1 Creative/Productive Dialogue and Practitioners' Recognition Capability at SWS and Networked SWS 132
6.3.2 Drawing in Knowledge Boundaries and the Practice Process at Process-Based Organizations 135
6.3.3 Traffic and Synthesis Among Dual Networks 138
6.4 Column I Honda 132
6.4 Column II Toyota 132
6.4 Column III Omron 132
6.4 Column IV Takara 132
6.4 Column V Fast Retailing 132
References 146
7 Theoretical and Managerial Implications 148
7.1 Boundaries Management Frameworks 148
7.2 Optimizing Organization Architecture for Innovation 151
7.3 Business Architecture for Integrated Organization 154
7.4 New Knowledge Creation From the Process-Based Organization 157
7.5 Network Architecture Thinking 158
7.6 Network Architecture of the Small-World Structure 159
7.6.1 Internal Network Architecture of SWS 161
7.6.2 The External Network Architecture of SWS 162
7.6.2.1 SWS Relationships 162
7.6.2.2 The Structural Nature of SWS 164
References 166
8 Conclusion 168
8.1 The Dynamics of Business Architecture 168
8.2 Innovation from Network Architecture Thinking 169
Appendix: Research Methodology and Data Collection 172
References 174
Index 175