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Managing Technology: Synthes' Case
Introduction
Synthes is a leader maker and distributor of “internal fixation devices” and has to make a choice about a new technology (Bioresorbable implants). The main options available for the company are:
1. To continue to Ignore bioresorbables, focusing on well established competences (Metallic implants);
2. To Wait for other manufacturers to develop new generation technology (3rd generation) and push it to the market. Just then, if room for success is present, quickly enter the market;
3. To Develop and Market a line of bioresorbables using the currently available technology (2nd generation);
4. To Research and Develop the next generation technology.
Obviously each of those options present strength and weaknesses, as well as pros and cons that have to be evaluated in order to assess risks and potentials involving the new technology development. At what degree Synthes will influence the development of the bioresorbables market? How might Synthes introduce resorbables?
What is on the table?
Invention, Innovation, Diffusion
We have to consider the difference between “invention” and “innovation” before making the decision. Synthes’ success was determined by its strong capacity to innovate and diffuse its product, mainly thanks to its top quality sales force and to the close link with the Swiss “no-profit” organization AO.
Relating to the options mentioned in the introduction we see that the company has to choose if to:
• Stay out and wait, in order eventually manage technology in the future. We have to remember that the development and distribution of such a technology might result in a potentially disruptive and self-cannibalizing innovation. Synthes invested most of its resources in non-resorbable technologies, as it refused to follow the first two innovation waves. And it feels in comfort as a leader in the market. Arguably, the introduction of the new technology would serve
Introduction
Synthes is a leader maker and distributor of “internal fixation devices” and has to make a choice about a new technology (Bioresorbable implants). The main options available for the company are:
1. To continue to Ignore bioresorbables, focusing on well established competences (Metallic implants);
2. To Wait for other manufacturers to develop new generation technology (3rd generation) and push it to the market. Just then, if room for success is present, quickly enter the market;
3. To Develop and Market a line of bioresorbables using the currently available technology (2nd generation);
4. To Research and Develop the next generation technology.
Obviously each of those options present strength and weaknesses, as well as pros and cons that have to be evaluated in order to assess risks and potentials involving the new technology development. At what degree Synthes will influence the development of the bioresorbables market? How might Synthes introduce resorbables?
What is on the table?
Invention, Innovation, Diffusion
We have to consider the difference between “invention” and “innovation” before making the decision. Synthes’ success was determined by its strong capacity to innovate and diffuse its product, mainly thanks to its top quality sales force and to the close link with the Swiss “no-profit” organization AO.
Relating to the options mentioned in the introduction we see that the company has to choose if to:
• Stay out and wait, in order eventually manage technology in the future. We have to remember that the development and distribution of such a technology might result in a potentially disruptive and self-cannibalizing innovation. Synthes invested most of its resources in non-resorbable technologies, as it refused to follow the first two innovation waves. And it feels in comfort as a leader in the market. Arguably, the introduction of the new technology would serve