Ch 11 - Innovation and Change

Question 1

What is organizational innovation? Where is it spurred from?

Answer 1

= creation of a new idea, solution, or behavior by an organization

from:
a) outside forces (powerful customer demands, gov regulations)
b) inside company = managers see a need

Question 2

What are two concepts that address the need for oganizational change?

Answer 2

1) Disruptive innocation
2) Ambidextrous approach

Question 3

What is disruptive innovation? Global companies thoughts on it? Entrepreneurial ventures?

Answer 3

= innovations in products or services that typically start small and end up completely replacing an existing product or service technology for products and consumers (ex: Netflix, Uber)

global orgs are shifting to disruptive innov being a GOAL

entrepreneurial ventures are bringing the disruptions!

Question 4

What is self-disruption? What is reverse innovation?

Answer 4

self = avoid being disrupted by others by doing own innovation and not letting own org go stagnant (you cant hurt me I already do that myself)

reverse = creating innovative low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale (more $) in developed countries
ex: John Deere made cheap tractor for india, now selling same in US for more

Question 5

How is esports a disruptive technology?

Answer 5

televised easily, no need for large vendors or other physical assets, less expense to event hosts

Question 6

What is the ambidextrous approach? What are the two parts of this approach? What is managers role?

Answer 6

incorporating structures and processes that are appropriate both for the creative impulse and for the systematic implementation of innovations = dedicated innov biz unit

1) exploration = encouraging creativity, risk taking, experimentation, and the development of new ideas (need space for the weird)
2) exploitation = implementing new ideas with established capabilities and routines (need processes to make use of the weirdness)

manager = encourage flexibility creativity freedom in creative depts, then use rigid centralized approach to IMPLEMENT the innovations

Question 7

What is a product innovation? Process innovation? Technlogy change?

Answer 7

Product innovation: a change in the organization’s product or service outputs (offerings)

Process innovation: a change in the organization’s production processes at higher strategic level

Technology change: a change in the organization’s production process at lower product level, more physical change

Question 8

what are 3 innovation stages for products and processes?

Answer 8

1) Discovery = design org to encourage creativity and new ideas
2) Horizontal collaboration and open innovation = creating conditions and sustems to facilitate internal and ext knowledge sharing
3) Innovative roles and structures = managers put in place procedures and structures to ensure that new ideas are carried forward for acceptance and implementation

Question 9

What goes into the discovery stage of innovation? What is an essential characteristic in this stage? What is a good example of this characteristic?

Answer 9

= where ideas for new products and processes are born

characteristic = creativity! able to embrace risk, fail often, flows from individual to creative org **ALL PEOPLE HAVE IT IN SOME WAY, not that elusive

ex: 3M post it notes = scientist trying to make superglue, instead made something only kinda sticky so innovated!

Question 10

What main approach do innovative companies use for information spreading?

Answer 10

bottom up approach! = encouraging the flow of ideas from lower levels and ensure they get heard by upper execs
–> give lower levels fredom to take risk and action

Question 11

Wjat are 5 common characteristics among companies that successfully innovate?

Answer 11

1) Work with customers to understand needs and develop solutions
2) Use new technology effectively
3) Shared new product development process supported by top management
4) Members from key departments cooperate in development of new product or service (successful innov takes multiple depts!)
5) Cross-functional team guides project from beginning to end

Question 12

What is the horizontal linkage model? Why is horizontal likage important? How does this relate to famous innovation failures?

Answer 12

= a model in which research, manufacturing, and sales, and marketing simultaneously contribute to new products and technologies
==> people from these depts meet in teams

important bc SPEED

famous innovation failures usually violate the horizontal linkage model

Question 13

What is open innovation? Crowdsourcing? internal crowdsoourcing>?

Answer 13

open innov = search for and commercialization of new ideas beyond the organization and industry (internet lets us tap into worldwide knowldge!)

Crowdsourcing = approach to open innovation that involves obtaining information, ideas, or opinions from a large group of people
internal = employees pitch ideas to collegueas and managers and collevtivelt decice which to pursue

Question 14

What are some examples of crowdsourcing?

Answer 14

• contest = ex: Lays chip ideas
• traffic apps that show where congestion is
• crowdsourced maps for where to send supports in emergencies/natural disasters

Question 15

What is another, comparatively easy way to get innovation into your company?

Answer 15

Innovation by acquisition = buying start-up companies! bc theyre the ones with the big brain people and speedy innovative structure

Question 16

What is corporate intrapreneurship? What is an important outcome/step in this? What are some features and benefits of this step?

Answer 16

Corporate intrapreneurship = create internal entrepreneurial spirit, philosophy, and structure to encourage employees to act like entrepreneurs = release creative energy of all org employees

Idea champion = person who sees the need for and enthusiastically supports productive change within the organization bc CHANGE DOES NOT OCCUR BY ITSELF

–> benefit: successful ideas are generally those backed by someone wholeheartedly
–> feature: idea champion passionately committed even if managers reject the idea

Question 17

What are some other wats yo create intrapreneurship?

Answer 17

a) Idea incubator: distinct in-house program or center where ideas from employees can be developed without interference from company bureaucracy or politics

b) New-venture team: unit separate from the rest of the organization that is responsible for developing and initiating a major innovation = free rein to member creativity
–> small, loosely structured, flexible

Question 18

What are types of new venture teams?

Answer 18

Skunkworks: separate, small, informal, autonomous, secretive group that focuses on breakthrough ideas for the business

In-house venture: a start-up that a company launches within the company rather than as a separate entity. = ultimate ambidextrous approach bc nuture new biz and stimulate entrepreneurial in org

Question 19

What are types of change? What are two main tools managers can use to smooth the culture change process?

Answer 19

People change: changes to the mind-set of a few employees
Culture change: changes to the mind-set of the organization as a whole

tools:
1) Training and development programs
2) Organization development

Question 20

Why use training + development? What important to emphasize?

Answer 20

why?
- good to change employee mindsets
- can be offered to large groups of employees

offer training + dev to all but EMPHASIZE for managers bc managers’ behavior + attitudes influence people and lead to culture change
ex: send mgers to leadership skills training course

Question 21

What is organization developemnt (OD)? Focus? Why all orgs need it?

Answer 21

= planned, systematic process of change that uses behavioral science techniques to create a positive corporate culture and improve the way people and departments relate to one another

focus = HUMAN AND SOCIAL ASPECTS

even healthy orgs have conflicts so OD alwasy good

Question 22

In what ways shoudl org development people work to impact the org?

Answer 22

= look at broader issues and improve org life
a) Encourage a sense of community
b) Push for organizational climate of openness and trust
c) Provide opportunities for personal growth and development
d) Conflict management

Question 23

What are most effective techniques for organization development?

Answer 23

1. Team building: activities that enhance the cohesiveness and success of organizational groups and teams
2. Survey feedback: begins with an employee questionnaire, and then an OD consultant provides feedback to the employees regarding responses and problems identified (abt org values, climate, leadership, cohesion, etc)
3. Large-group intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change = all who have stake in the change! to make collective decisions
   **most popular, can do several days and 50-500 people!

Question 24

What are differences between traditional org dev model and large group intervention model?

Answer 24

(2nd in list is large group intervention)
action focus = specific problem/group VS entire system
information source: org VS org and env
information distribution: limited VS widely shared
time frame: gradual VS fast
learning: individual/small group VS whole org

Question 25

In changing the culture and mind-set of employees in the process of implementing organizational change, managers most frequently use which of these approaches?
a) Open innovation
b) Team building
c) Unfreezing and refreezing
d) Training

Answer 25

d) Training

Question 26

What is change? change implementaion stages?

Answer 26

Change: adoption of a new idea by an organization

stages:
1) Unfreezing: making individuals aware of problems and motivating them to change (present info, show discrepancies, communicate vision and plans, MOTIVATE)
2) Changing: individuals experiment with new behavior and learn new skills to use in the workplace (build coalition, train ppl, empower employees to act on the plan)
3) Refreezing: individuals acquire new attitudes or values and are rewarded for them by the organization (reward behavioural changes, provide updated data, NORMALIZE)

Question 27

Why do people resist change?

Answer 27

a) Self-interest (see posssible increase of workload, perceived loss of power, prestige, benefits, pay) **prob biggest obstacle for org change
b) Lack of understanding and trust (dont understand intent behind change)
c) Uncertainty (lack of info, worried about effect on job, prefer comfort over change)
d) Different assessments and goals = ppl affected may view it differently, bring up important considerations, or see how change positively impacts one dept but negatively another

Question 28

What are methods for overcoming resistance t ochange?

Answer 28

1. create sense of urgency
   –> crisis lowers resistance (ex: covid)
   –> without crisis, need make the need obvious and even harsh/startling = FEEL the need not just facts
2. ^ speak to hearts as well as heads
3. use implementation tactics

Question 29

What are 5 tactocs for implementing change? When to use each?

Answer 29

1) top mgmt support = best when multiple depts involved, or users doubt legitimacy
2) communication and educatino = best when change is technical, users need accurate info
3) paricipateion = users need feel involved, design requires info from others, users have power to resist
4) negotiaion = group has power over implementation and group will lose out on change
5) coercion = crisis exists, initiators clearly have the pwoer, other techniques have failed