Chapter 11: Innovation and Change Flashcards
Disruptive Innovation
innovation that typically starts small and ends up completely replacing an existing product or service technology for producers and consumers
Disruptive Innovation: stage 1
a new technology, product or service emerges on a small scale but poses as a potential threat
Disruptive Innovation: Stage 2
established companies ignore the potential threat, wanting to hold on to their current business model
Disruptive Innovation: Stage 3
previously unnoticed companies, products and services grow to a size that destroys the established business model
Types of Strategic Change
- Technology
- Products and Services
- Strategy and Structure
- Culture
Technology Change
changes in an organization’s production process, including its knowledge and skills base, that enable distinctive competence
- facilitated by ambidextrous organization
Product and Services Change
changes in an organization’s product or service outputs
- Facilitated by horizontal coordination model
strategy and structure changes
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)
Culture changes -
changes in the values, attitudes, expectations, beliefs, abilities, and behaviour of employees
- Organization development interventions
Technology Change techniques
- Switching structures
- Separate creative departments
- venture teams
- intrapreneurship
idea incubator (separate creative departments)
safe harbour where ideas from employees throughout the organization can be developed without interference from bureaucracy or politics
switching structures
an organization creates an organic structure when such a structure is needed for the initiation of new ideas
venture teams
a technique to foster creativity within organizations in which a small team is set up as its own company to pursue innovations
creative departments
organizational departments that initiate change, such as research and development, engineering, design, and systems analysis
idea champions/ intrapreneurs
organizational members who provide the time and energy to make things happen; sometimes called advocates, intrapreneurs, and change agents
New Products and Services
- success rate is very low
- must: understand customers and marketing, use outside tech, have top management support innovation
Horizontal coordination model - adds
- specialization
- boundary spanning
- horizontal communication
Forces for Culture Change
- Re-engineering and horizontal organizing
- Diversity
- Learning organization
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
organizational change
the adoption of a new idea or behaviour by an organization
Organization Development Intervention
- Large group intervention
- Team building
- Interdepartmental activities
Large group intervention
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
Team building
activities that promote the idea that people who work together can work together as a team
