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Dominant design

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constantly experimenting and therefore cannot enjoy economies of scale. After the emergence of the dominant design, some firms accumulate complementary assets and exploit possible economies of scale, which in turn raises entry and mobility barriers in the industry. Firms that enter the industry during a period of experimentation risk choosing the wrong technological path, but have high upside if they choose the right one. Pre-dominant design entrants have been shown to have a higher chance of survival than those that enter after the emergence of the dominant design. Utterback and Kim (1985) and Anderson and
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dominant design can be a new technology, product or a set of key features incorporated from different distinct technological innovations introduced independently in prior product variants. Their 1975 paper, however, never uses the term "dominant design". It does refer to "dominant strategy" and "dominant type of innovations". Yet, in their 1993 work, Suarez and Utterback reference the 1975 paper as the source of the concept of "Dominant design". David Teece, of later fame for the theory of dynamic capabilities, overtly develops the concept of dominant design in his 1984 paper on
264:(1990) considered the effect of a disruption that invades a mature industry and thus starts a new cycle. In each cycle, the number of firms increases in the early ("fluid" or "ferment") period, reaches a peak with the emergence of the dominant design, decreases until a few firms dominate the industry, and then restarts again when a disruption creates the conditions for a new wave of entry and the re-enactment of the industry life cycle. 154:
Dominant design milestones have been identified in many product lines. The emergence of a dominant design typically coincides with the point at which the number of firms competing in the industry peaks. Once it emerges, it implicitly sends a message to producers and consumers that its key features is
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Utterback and Suarez propose that once a dominant design emerges, it can have a profound impact on both the direction of further technical advance, on the rate of that advance, and on the resulting industry structure and competitive dynamics. Prior to the creation of the dominant design, firms are
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Dominant designs are often only identified after they emerge. Some authors consider the dominant design as emerging when a design acquires more than 50% of the market share. A more promising approach is to study the specific product innovations introduced by different firms over time to determine
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Utterback and Abernathy first introduced the concept of "dominant design" in 1975. They proposed that the emergence of a dominant design is a major milestone in an industry evolution and changed the way firms compete in an industry and thus, the type of organizations that succeed and prevail. A
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The first commercial product is launched, connecting consumers to this new architecture for the first time. It is usually directed at a small group of customers. This milestone acts as a “last minute call” for competitors to review and speed up their research
629: 301: 76:. The dominant design has the effect of enforcing or encouraging standardization so that production or other complementary economies can be sought. Utterback and Suarez (1993) argue that the competitive effects of 758: 622: 294: 34:. A dominant design is the one that wins the allegiance of the marketplace, the one to which competitors and innovators must adhere if they hope to command significant market following. 80:
only become important after the emergence of a dominant design, when competition begins to take place on the basis of cost and scale in addition to product features and performance.
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A clear front-runner emerges from the early market. For example, in the personal computer industry, Apple Computers dominated after the introduction of their Apple I in 1976.
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The first working prototype of the new product/ technology is introduced, sending a signal to competitors to review the feasibility of their research programs.
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but now almost universally preferred over other keyboard designs. Dominant designs end up capturing the allegiance of the marketplace; this can be due to
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Finally, at some point in time, a particular technological trajectory achieves dominance and this marks the final milestone in the dominance process.
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Dominant designs may not be better than other designs; they simply incorporate a set of key features that sometimes emerge due to technological
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Teece, David (1986). "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy".
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Role of universities in the product development process: strategic considerations for the telecommunications industry, Alok K Chakrabati
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Utterback, J. M. and F. F. Suarez (1993). 'Innovation, competition, and industry structure', Research Policy, 22 (1), pp. 1–2.
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Innovations and Dominant Design in Mobile Telephony from The Research Institute of the Finnish Economy – Koski and Kretschmer
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The process by which a specific design achieves dominance consists of a few characteristic milestones:
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and not necessarily strict customer preferences. An often cited, albeit incorrect, example is the
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with the intention of creating a new commercial product or improving an existing design.
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a "must have" by future products. Examples of a dominant design include the simple
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keyboard, supposedly designed to overcome operative limitations on the
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Dominant Designs and the Survival of Firms – Utterback and Suarez
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Invention and innovation: an introduction – Open University –
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in 1975, identifying key technological features that become a
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Technological features that become de facto industry standards
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A pioneer firm or research organization begins conducting
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Many industry examples are included in Utterback's book
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Utterback, James M; Abernathy, William J (1975-12-01).
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Utterback, James M.; Suárez, Fernando F. (1993-02-01).
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Implications for innovation and competitive dynamics
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became the dominant design in PC operating systems.
739:Environment: Opportunity or Threat? – Clive Savory 543: 68:). Updated designs will be released incorporating 410:"Innovation, competition, and industry structure" 772: 719:Changing the Dominant Design (Gary S Vasilash) 486: 407: 354: 487:Anderson, Philip; Tushman, Michael L. (1990). 355:Anderson, Philip; Tushman, Michael L. (1990). 240:, radial air-cooled engine, and wing flaps. ( 37:When a new technology emerges (e.g. computer 26:concept introduced by James M. Utterback and 693:"Dominant designs and the survival of firms" 610:– via Elsevier Science Publishers B.V. 223:articulated the Apple/iPod dominant design 119: 690: 433: 324: 149: 106: 655:"Almost iPod, but in the End a Samsung" 114:Profiting from technological innovation 773: 620: 327:"Mastering the dynamics of innovation" 292: 652: 593: 403: 401: 228:Mastering the Dynamics of Innovation 13: 14: 797: 456: 398: 361:Administrative Science Quarterly 703:from the original on 2024-01-14 691:Utterback, James (1995-01-01). 684: 673:from the original on 2019-12-29 646: 635:from the original on 2024-01-15 614: 576:from the original on 2020-02-06 526:from the original on 2024-01-15 501:from the original on 2024-01-15 469:from the original on 2019-05-07 387:from the original on 2024-01-15 337:from the original on 2024-01-15 325:Utterback, James (1994-01-01). 307:from the original on 2024-01-15 197:, when VHS became the de facto 587: 537: 512: 480: 450: 348: 318: 286: 182:electricity in the late 1800s. 1: 331:Harvard Business School Press 279: 697:Strategic Management Journal 621:Suarez, Fernando F. (2004). 608:10.1016/0048-7333(86)90027-2 562:10.1016/0305-0483(75)90068-7 426:10.1016/0048-7333(93)90030-L 293:Suarez, Fernando F. (2004). 7: 734:Why the World Went Windows 653:Pogue, David (2006-03-09). 267: 167:. Other examples include: 10: 802: 103:which ones are retained. 157:four function calculator 70:incremental improvements 120:Dominant theory process 230:(see references below) 150:Evidence and examples 107:Origins of the theory 93:mechanical typewriter 24:technology management 781:Strategic management 742:The Curse of Qwerty 463:Smithsonian Magazine 247:The Fifth Discipline 187:videotape format war 28:William J. 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Index

technology management
William J. Abernathy
de facto standard
GUI
operating systems
Microsoft
Windows
Apple Inc.
Mac OS
IBM
OS/2
incremental improvements
Microsoft Windows
economies of scale
path dependence
QWERTY
mechanical typewriter
network effects
R&D
four function calculator
iPod
iPhone
War of the currents
alternating-
direct-current
videotape format war
Betamax
VHS
video tape
desktop metaphor

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