started in Alpha, the pace that we developed the product in was new to me. I have never seen it happen before. But it is because we just work on one thing here. This is development! We have no customers, nothing like that! We are allowed to have focus. It’s a different agenda.” (CTO, Alpha) Both companies have separated the strategic decision making from the technological development process. Beta it may be argued that protecting the technological development from market pressures is an important component for focusing the technological development and thus enhancing the innovative capability of the firm. Open exchanges with the potential first customers also gives input to the innovation process. For Alpha it may be argued that the relatively open process with inputs from suppliers, research institutes and customers, makes a richer resource base of knowledge and know how to enhance the innovation process. Table 3: Microfoundations of Dynamic Capabilities of Discontinuous Innovations Microfoundations Alpha Beta Product Focused technological development Established around the product idea Established around the product idea Process Searching for technology and selecting suppliers Suppliers are essential in developing technology Protect confidentiality of technology. Do not involve outside partners. Outsources technology searches Integrating innovative products with dominant technology Uses their connections with a petroleum company to gain access to practical drilling expertise. Created a technical steering committee with three potential customers who monitor their technology development Position Involving potential customers in the development of the product Carefully works with involving innovative –oriented partners Involve potential customers to oversee the development, but do not directly use expertise of customers Challenges in size: Collaborating with large organizations. Expresses concerns that petroleum companies have the upper hand in negotiations. Expresses the importance of using the same “codes” as their customer, speak the same language Gaining legitimacy; the art of being visible Mindful of the importance of acceptance of technology and procedures from the market. Aware of the importance of having trust from investors and stakeholders Organizational transformation for commercializing Aware of the importance of sales personnel Development of organization to meet customers needs Paradigm
Founded 2005 2003 Idea Industry based (from technology foresight) Research based Technology Patented Patented Competence in firm CEO with engineering and business degrees, 10 year experience in innovation/technology development. Team with different industrial backgrounds and experienced in technology development. Board of directors: “seniors” from industry, and investors. 4 board members hold total of 48 board memberships. Substantial resource base for company CEO with background from petroleum company and supplier industry. Seniors with long industry backgrounds, combined with “fresh” PhD’s Board of directors: “seniors” from industry, and investors. 5 board members hold total of 46 board memberships. Substantial resource base for company Market niche Drilling and exploration technology Exploration technology Number of employees 6 employees, 6 consultants 17 Founder One of the founders work in the company, another is hired as a consultant Owns 1.3% of company, not active Ownership structure Venture fund: 28% Founders: 14% each Others: 15% (this has changed during our project) On Oslo stock exchange Planned commercialisation Relations with potential customers 2009 (first product) Petroleum company has bought substantial share in company Planned start 2009, postponed Has development, and right of first refusal contract with three petroleum companies Prototype made First product, working on Sept. 2008