Thesis (S.M.)--Massachusetts Institute of Technology, System Design & Management Program, 2004. / Includes bibliographical references (p. 75). / It is predicted by many in the industry that over the next decade automotive OEM's will look more and more like "vehicle-brand owners," focusing efforts on branding, marketing, and building a stronger retail channel. This is especially true of the U.S. automakers, who are today entrenched in a desperate struggle to reclaim their declining market shares from foreign counterparts. As a result, demands placed on tier-one suppliers have increased, competition throughout the supply-chain has intensified, and new strategies for sustainability are needed. The myriad engineering, development, and validation responsibilities passed down by OEM's have resulted in the formation of a new first-tier supplier - the systems integrator. The transition from components to integrated systems and modules has definite implications on the firm's innovation and product development processes. This paper focuses on supplier innovation strategies, and argues that the proper alignment between value creation and value capture aspects of an innovation are required to maximize its profitability potential. Ten ArvinMeritor (tier-one supplier) innovations are examined in attempt to determine what critical factors had the most impact on profitability (or lack thereof). The results are then placed in a systems context, and a framework is generated to conceptualize the critical inputs to the systems innovation process. The foundation of the framework is depicted as two rotating wheels, the System Architecture (value creation) wheel, and the Revenue Architecture (value capture) wheel. The wheels gain momentum from a number of critical interdependent inputs to the value creation and capture processes, and furthermore, the sustained momentum of each wheel / (cont.) is needed to keep the other in motion. These framework inputs are discussed in detail, and collectively represent a conceptual path forward for ArvinMeritor as it continues its transitional journey to the realm of the systems integrator. / by Nathan A. Clark. / S.M.
| Identifer | oai:union.ndltd.org:MIT/oai:dspace.mit.edu:1721.1/30054 |
| Date | January 2004 |
| Creators | Clark, Nathan A. (Nathan Allen), 1972- |
| Contributors | Eric A. von Hippel., System Design and Management Program., System Design and Management Program. |
| Publisher | Massachusetts Institute of Technology |
| Source Sets | M.I.T. Theses and Dissertation |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 134 p., 6034534 bytes, 6034343 bytes, application/pdf, application/pdf, application/pdf |
| Rights | M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission., http://dspace.mit.edu/handle/1721.1/7582 |
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