SUNConferences, COMA '13

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Competitive Strategies for Value Creation During Disruptive Innovations
Achim Kampker, Peter Burggräf, Christoph Deutskens, Christian Niebuhr

Last modified: 2013-08-21

Abstract


Electric mobility will play an important role in individual traffic in the upcoming decade and create revolutionary changes in product and process technology. Thereby, electric mobility can be described as a disruptive innovation resulting in high risks in market development and many technological alternatives. These are specific for disruptive innovations and represent the major challenge in designing value creation processes. Hence, competitive strategies for value creation of the electric powertrain are essential. To analyze the existing process of value creation, different approaches exist and can basically be separated in a market and a resourced based view. New approaches like the basic value creation architectures extend the existing literature. In the case of disruptive innovations, basic decision parameters of the approaches to design value creation cannot be analyzed due to the risky and unpredictable market and technology development. Hence, an approach for the design of the strategy of value creation that takes the risk of disruptive innovations into consideration is needed. The approach for a competitive value creation strategy presented in this paper can be separated into four steps. Firstly, a strategy for the value creation is needed. From an internal view this includes the definition of the depth of added value for the company. Secondly, from an external view the strategy for value creation involves the design of the value network. Moreover, a risk strategy to take the uncertainty of disruptive innovations into account is needed. The internal view covers thirdly the strategy to manage the technological alternatives. Fourthly, in the external view of the risk management the market development is regarded. In each of the four steps, companies can follow a focused or a general strategy. Different examples from companies will be finally presented in the paper to show how these companies develop their strategy for value creation.

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