Chapter 11: Innovation and Change Flashcards

1
Q

Disruptive Innovation

A

innovation that typically starts small and ends up completely replacing an existing product or service technology for producers and consumers

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2
Q

Disruptive Innovation: stage 1

A

a new technology, product or service emerges on a small scale but poses as a potential threat

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3
Q

Disruptive Innovation: Stage 2

A

established companies ignore the potential threat, wanting to hold on to their current business model

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4
Q

Disruptive Innovation: Stage 3

A

previously unnoticed companies, products and services grow to a size that destroys the established business model

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5
Q

Types of Strategic Change

A
  • Technology
  • Products and Services
  • Strategy and Structure
  • Culture
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6
Q

Technology Change

A

changes in an organization’s production process, including its knowledge and skills base, that enable distinctive competence
- facilitated by ambidextrous organization

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7
Q

Product and Services Change

A

changes in an organization’s product or service outputs
- Facilitated by horizontal coordination model

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8
Q

strategy and structure changes

A

changes in the administrative domain of an organization, including structure, policies, reward systems, labour relations, coordination devices, management information control systems, and accounting and budgeting
- Facilitated by mechanistic org decision (dual-core approach)

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9
Q

Culture changes -

A

changes in the values, attitudes, expectations, beliefs, abilities, and behaviour of employees
- Organization development interventions

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10
Q

Technology Change techniques

A
  • Switching structures
  • Separate creative departments
  • venture teams
  • intrapreneurship
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11
Q

idea incubator (separate creative departments)

A

safe harbour where ideas from employees throughout the organization can be developed without interference from bureaucracy or politics

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12
Q

switching structures

A

an organization creates an organic structure when such a structure is needed for the initiation of new ideas

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13
Q

venture teams

A

a technique to foster creativity within organizations in which a small team is set up as its own company to pursue innovations

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14
Q

creative departments

A

organizational departments that initiate change, such as research and development, engineering, design, and systems analysis

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15
Q

idea champions/ intrapreneurs

A

organizational members who provide the time and energy to make things happen; sometimes called advocates, intrapreneurs, and change agents

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16
Q

New Products and Services

A
  • success rate is very low
  • must: understand customers and marketing, use outside tech, have top management support innovation
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17
Q

Horizontal coordination model - adds

A
  • specialization
  • boundary spanning
  • horizontal communication
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18
Q

Forces for Culture Change

A
  • Re-engineering and horizontal organizing
  • Diversity
  • Learning organization
19
Q

Organization Development

A

a behavioural science field devoted to improving performance through trust, open confrontation of problems, employee empowerment and participation, the design of meaningful work, cooperation between groups, and the full use of human potential

20
Q

organizational change

A

the adoption of a new idea or behaviour by an organization

21
Q

Organization Development Intervention

A
  • Large group intervention
  • Team building
  • Interdepartmental activities
22
Q

Large group intervention

A

an approach that brings together participants from all parts of the organization (and may include outside stakeholders as well) to discuss problems or opportunities and plan for change

23
Q

Team building

A

activities that promote the idea that people who work together can work together as a team

25
Barriers to Change
- Excessive focus on costs - Failure to perceive benefits - Lack of coordination and cooperation - Uncertainty avoidance - Fear of loss
26
7 Steps for Implementing Change
- Urgency - coalition to guide the change - create a vision and strategy for change - find an idea that fits the need - develop plans to overcome resistance to change - create change team - foster idea champions
27
How change is facilitated
- Ambidextrous - horizontal coordination model - dual-core approach/ mechanistic - organizational development
28
Ambidextrous
approach a characteristic of an organization that can behave in both an organic and a mechanistic way
29
dual-core approach
an organizational change perspective that identifies the unique processes associated with administrative change compared to those associated with technical change
30
horizontal coordination model
a model of the three components of organizational design needed to achieve new product innovation: departmental specialization, boundary spanning, and horizontal linkages
31
Organization development
a behavioural science field devoted to improving performance through trust, open confrontation of problems, employee empowerment and participation, the design of meaningful work, cooperation between groups, and the full use of human potential
32
change process
the way in which planned changes occur in an organization
33
creativity
the generation of novel ideas that may meet perceived needs or respond to opportunities
34
crowdsourcing
approach that opens innovation by soliciting ideas from online volunteers
35
incremental change
a series of continual progressions that maintains an organization’s general equilibrium and often affects only one organizational part
36
management champion
a manager who acts as a supporter and sponsor of a technical champion to shield and promote an idea within the organization
37
new-venture fund
a fund that provides financial resources to employees to develop new ideas, products, or businesses
38
open innovation
an approach that extends the search for and commercialization of new products beyond the boundaries of the organization
39
organizational innovation
the adoption of an idea or behaviour that is new to an organization’s industry, market, or general environment
40
radical change
a breaking of the frame of reference for an organization, often creating a new equilibrium because the entire organization is transformed
41
skunkworks
separate, small, informal, highly autonomous, and often secretive group that focuses on breakthrough ideas for the business
42
technical champion
a person who generates or adopts and develops an idea for a technological innovation and is devoted to it, even to the extent of risking position or prestige; also called product champion
43
time-based competition
delivering products and services faster than competitors, giving companies a competitive edge