Essay for Innovation

Topics: Product lifecycle management, Parametric Technology Corporation, Technology Pages: 8 (2357 words) Published: March 10, 2013
I. Introduction4
1. Innovation Principles background4
2. The purpose I selected this topic6
3. PTC Background6
II. PTC Current Business Strategy7
1. Strategic Goals7
2. Current Strategy8
III. Innovation capability analysis for PTC9
1. Analysis for current platform and service9
2. Innovation brought form platform and services10
3. Issues on current platform and service11
IV. Proposed Innovation Opportunities12
V. Potential Risk of Proposal13
VI. Conclusion13
VII. Appendix14

This essay is an analysis and recommendation for innovation capabilities of PTC (Parametric Technology Corporation), which is a software company I served for previous 3 years. All the analysis was based on the Six “Enduring” Principles created by professor Michael A. Cusumano from MIT Sloan School. I made a thorough analysis of PTC current platform and services, which brought many advantages for its innovation, and give some proposals to its platform and services to better meet its sustainable innovation goals.

I. Introduction
1. Innovation Principles background
Today is an age of innovation and commoditization. The innovation and renewal are essential factors for companies on all industries to survive and thrive on the fierce competition since it is difficult to get competition advantages by doing the same thing or with the same products. But, only is the production innovation enough? How to find an effective way to keep sustainable innovation? The professor Michael A. Cusumano from MIT Sloan School brought us six “Enduring” principles on sustainable innovations, which focus on platform and services rather than product. On his book “Stay Power”, the six principles (see Appendix 1.) was descripted as below: Principle 1: Platforms, Not Just Products

In this principle, two types of platform was defined, one is the internal product platform, which means a set of common components or modules around which an organization can create a family of related products or service. Another is external industry platform, which is the network that can bring together different platform owner to create new products or services. The product platform is useful to develop new product and services by utilizing existing knowledge and technology and industry-wide platform is useful to leverage a global ecosystem and generate network effects. Principle 2: Services, Not Just Products

Here the service means transformed standardized products into more tailored service-like offerings as well as elevate product to become new service-delivery platforms such as Google search, Apple iTunes or some staff like that. It will generate more revenue or profits from maintenance and personalized services than from standardized products. Principle 3: Capabilities, Not Just Strategy

Base on the platform ecosystem (see Appendix 2.), which come form combination of platform, complements and network effects, the value shift from stand-alone products to industry-wide platforms and different types of services, which could bring deep capabilities in science and technology. They are core factors for companies to discover core competency. Principle 4: Pull, Don’t Just Push

Strong network effects bring the platform will attract more costumers’ eyes, which so called pull process. Principle 5: Scope, Not Just Scale
With the development of the external platform, the scope of the platform covered should be widened and maximized. Principle 6: Flexibility, Not Just Efficiency
The innovation with the platform and service will take flexibility into account rather than efficiency, because the transportability made the system could easy to reuse. Which is important to save cost. 2. The purpose I selected this topic

There are two reasons to select this topic. This lecture focuses on the strategic problems faced by firms on high-tech industries, which I have worked in for 6 years as a software engineer. I am very familiar...
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