There are many controversies regarding executive salaries within companies. Over the years different people have proposed different theories to solve the problem. How much should they earn? Upon what variables should the salary be based?
First Mover Advantage Revisited
There is a lot of theoretical evidence supporting the model, but does this evidence emerge empirically as well? Not quite. Consider the markets for safety razors, disposable diapers, photographic film, laser printers, game consoles, VCRs, energy drinks, personal computers, internet browsers, operating systems, search engines, online bookstores, online auctions, VoIP services, and the list goes on.
It is not about superior technology
In emerging and innovative markets, however, a completely different managerial mindset is required. Competing in those markets, contrary to what most people believe, is not about having a superior technology.
S-Curves
In this article I will introduce the S-curve framework, which is particularly useful for analyzing technological cycles and predicting the introduction, adoption and maturation of innovations.
Do Needs Lead Innovation?
In my opinion those two theories are not mutually exclusive but rather complementary. Innovations do start with the observation and understanding of customer needs, and the fact that customers will not always know what they need until they see it will only reinforce the idea that a company needs to “observe” the customers and not “ask directly” to them.
Creating a Market for the Technology
The message is that managing new and innovative markets is distinctively different from managing existing ones. It will require different competencies, different strategies and, most importantly, a different managerial mindset.
Managing Viral Marketing
There are many similarities between managing marketing and managing innovation in our fast paced, information based society. Marketers will need to revise their assumptions regarding how people interact with advertising just like managers will need to revise their assumptions regarding how customers adopt innovations.
The Enemy is the Mindset
The expression managerial mindset is often used in the business world to describe the set of assumptions and hidden norms that govern the behavior of managers. Bear in mind, however, that mindsets or paradigms have a much broader meaning. Every society, organization or geographic region carry its own set of assumptions and patterns; ruling how people communicate, interpret information, react to given situations, and so on.
Henderson – Clark Model
Henderson and Clark noticed that the Incremental – Radical dichotomy alone was not enough to explain what company would be in a better position to innovate and under what circumstances. They started wondering, for instance, why some incumbents would fail to catch something as straight-forward as some incremental innovations, just like Xerox failed to develop a small plain-paper copier even when it was the leader in xerography technology.
The Electronic Cash Register Innovation
What do daycare teachers and managers have in common? Both should learn storytelling. Stories represent a powerful tool to illustrate ideas, convince people and generate commitment. Below you will find the story of the cash register machine and NCR, the undiscussed leader in the manufacturing of mechanical cash registers during the 1960s.