Architectural and Component Innovation

Architectural innovation is a term coined by Henderson and Clark in their 1990 article “Architectural innovation: The reconfiguration of existing product technologies failure of established firms [34]."

Technology can be represented by both component knowledge and architectural knowledge.

• Component knowledge is knowledge about each of the core design concepts and the way in which they are implemented in a particular component. A component is defined as a physically distinct portion of a product (e.g. engine) that embodies a core design concept (e.g. internal combustion engine) and performs a well-defined function (e.g. automotive propulsion).

• Architectural knowledge, on the other hand, is knowledge about the ways in which the components are integrated and linked together in a coherent whole. The architecture of a product lays out how the components will work together, thus defining the linkages between them (e.g. single computer - information system).

Based on the above, innovations can be described as:

• Modular innovation which changes only the core design concepts of a technology. It is either a continuous enhancement of a specific component without changing the core design concept (e.g. improving the coefficient of efficiency in a combustion engine) or the application of a new core design concept that serves the same function of the component (e.g. electric engine instead of combustion engine).

• Architectural innovation which is the reconfiguration of an established system to link together existing components in a new way. It changes the way in which components of a system are linked together, while leaving the core design concepts untouched (e.g. moving the engine to the front instead of having it in the rear).

Architectural innovation destroys the usefulness of an (incumbent) organization’s architectural knowledge but preserves the usefulness of it's component knowledge.

A good example is the way Sharp upset the videocam architecture by introducing a LCD display into the back panel of the video camera. It sent major manufacturers like Sony and JVC scrambling to add side mounted LCD displays, which never delivered quite the same value or appeal to the user.

The important point for you here is that an architectural innovation strategy may enable your organization to displace the dominant position of an established organization.

Want to brainstorm some more on how you can develop a breakthrough product? info@strategies2innovate.com

Learn about the various ways you can plan your product strategies below.