Week 5 Notes
February 8, 2023 11:10 AM
Chapter 7 - Managing innovation, adaptability and change
The context of innovation and adaptability
Why build an organization?
• Not only efficient and effect, they are adaptable rather than simply flexible
• Recognize new problems, identify political impact of problems, and offer solutions
• They are proactive rather than reactive
Innovations
• Adaptability - organizing to anticipate new problems, trends and opportunities
• Wicked problem
○ A problem that is impossible to solve because each attempt to create a solution changers
the understanding of the problem
Disruptive innovation
What is the disruptive innovation?
• Disruptive innovation
○ Innovation in products, services, or processes that radically change an industries rules of the
game
• Sustaining innovation
○ Small and incremental changes in established products rather than dramatic break throughs
Why is disruptive innovation important?
• Companies that are successful tend to grow
• New ideas for products or services that differ significantly from the status quo are a threat to the
established power structure within large companies
• Disruptive innovations, especially at the beginning, typically apply to emerging or small markets
and project lower profits than a firms mainline products
Implications of disruptive innovation
• For entrepreneurs
○ Major disruptions open the door for new products and services to replace established and
mature businesses
, • For corporate managers
○ For managers in large, successful businesses, the challenge to disruptive innovation is to
create an appropriate response
Implications of disruptive innovations
• For career planning
○ Never get comfortable with a single employer
○ Keep your skills current
○ You are responsible for your future
○ Take risks while your young
Two views of the change process
The calm waters metaphor
• Lewin
○ A break in the organizations equilibrium state
• Unfreezing the status quo
• Changing to a new state
• Refreezing to make the change permanent
White-water rapids metaphors
• The lack of environmental stability and predictability requires that managers and organizations
continually adapt (manage change actively) to survive
Organizational change
Organizational change
• Any alterations of people, structure, or technology of an organization
Change agent
• Someone who acts as a catalyst and assumes the responsibility for managing the change process.
Characteristics of change
• Is constant yet varies in degree and direction
• Produces uncertainty yet is not completely unpredictable
• Creates both threats and opportunities
February 8, 2023 11:10 AM
Chapter 7 - Managing innovation, adaptability and change
The context of innovation and adaptability
Why build an organization?
• Not only efficient and effect, they are adaptable rather than simply flexible
• Recognize new problems, identify political impact of problems, and offer solutions
• They are proactive rather than reactive
Innovations
• Adaptability - organizing to anticipate new problems, trends and opportunities
• Wicked problem
○ A problem that is impossible to solve because each attempt to create a solution changers
the understanding of the problem
Disruptive innovation
What is the disruptive innovation?
• Disruptive innovation
○ Innovation in products, services, or processes that radically change an industries rules of the
game
• Sustaining innovation
○ Small and incremental changes in established products rather than dramatic break throughs
Why is disruptive innovation important?
• Companies that are successful tend to grow
• New ideas for products or services that differ significantly from the status quo are a threat to the
established power structure within large companies
• Disruptive innovations, especially at the beginning, typically apply to emerging or small markets
and project lower profits than a firms mainline products
Implications of disruptive innovation
• For entrepreneurs
○ Major disruptions open the door for new products and services to replace established and
mature businesses
, • For corporate managers
○ For managers in large, successful businesses, the challenge to disruptive innovation is to
create an appropriate response
Implications of disruptive innovations
• For career planning
○ Never get comfortable with a single employer
○ Keep your skills current
○ You are responsible for your future
○ Take risks while your young
Two views of the change process
The calm waters metaphor
• Lewin
○ A break in the organizations equilibrium state
• Unfreezing the status quo
• Changing to a new state
• Refreezing to make the change permanent
White-water rapids metaphors
• The lack of environmental stability and predictability requires that managers and organizations
continually adapt (manage change actively) to survive
Organizational change
Organizational change
• Any alterations of people, structure, or technology of an organization
Change agent
• Someone who acts as a catalyst and assumes the responsibility for managing the change process.
Characteristics of change
• Is constant yet varies in degree and direction
• Produces uncertainty yet is not completely unpredictable
• Creates both threats and opportunities
