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Winning Through Boundaries Innovation

Communities of Boundaries Generate Convergence

Mitsuro Kodama

At present, many companies consider «knowledge» the most important element and the benchmark for maintaining an enduring competitive advantage. The process of strategically acquiring both new boundaries knowledge and convergence knowledge to generate boundaries innovation becomes an important element in acquiring dynamic organizational capability. This is essential for rapidly establishing a company’s market position in new markets and technologies.
This book discusses from a micro-viewpoint different strategies for companies’ sustainable generation of boundaries innovation through the creation of both types of knowledge. It focuses on strategic management activities centered on innovation processes (incremental innovation and radical innovation) in a company.
In the future, the knowledge convergence processes practiced by individuals, groups and organizations inside and outside the company will form the basis of dynamic innovation activities. These will continually create new boundaries knowledge and convergence knowledge, as well as the organizational capability for supporting these.
The «knowledge convergence firm» this book proposes is a new corporate model that achieves sustainable boundaries knowledge by promoting creative, productive friction among people, and between and amongst communities. It does this by implementing knowledge convergence processes at diverse boundaries within and outside the company.
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3 Boundaries innovation through new business development across different industries and knowledge – Case studies: Apple, P&G


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Boundaries innovation through new business development across different industries and knowledge – Case studies: Apple, P&G

3.1 Combining creativity and efficiency

To survive as an innovation company and grow sustainably, it’s essential that companies cleverly create and use knowledge to combine both creativity and efficiency. The most important thing for business to remain competitive over the long-term is the establishment of unique strategies that bring about high quality and hard-to-copy knowledge. The business models of Apple in the US (iPod, iPhone, iPad) are good examples of this. Creativity is sought after to bring about unique products and services that will differentiate a company through knowledge convergence, and creating difficult-to-copy structures at low cost to differentiate from other companies also requires creativity – creativity is essential. Thus, how much unique value to customers can be brought about is an important aspect of knowledge creativity.

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