Innovation and Change BA 152

Pressures for Innovation and Change Competition Global Markets Technology New Work Structures Demographics ORGANIZATIONAL CHANGE Faster Cycle Times

Possible Targets for Change

One Model of Change: Step 1 Deter mine the need for change -

One Model of Change: Step 2 Overcome obstacles to change - Organizational - Functional - Group - Individual

Determine the strategy for change - One Model of Change: Step 3

One Model of Change: Step 4

Overcoming Obstacles to Change: Force Field Analysis DRIVING FORCES RESISTING FORCES STATUS QUO

To Overcome Obstacles What can you do? Less More COMMITMENT TIME Less More

Factors Speed Employee Involvement Resistance Power Execution Making the Change How Can You Do It? Mr. Rogers Donald Trump

Implementation Options

FIT! The 7S’s of Implementing Change STYLE Top-Down-- Bottom-Up SCOPE Isolated-- Org.Wide SUBSTANCE Soft--Hard SPEED Slow--Fast SCALE Small--Large SEQUENCE Hard-Soft-- Soft-Hard STRATEGIC INTENT Precise--Broad

To Insure It Works What should be done? Get top administration support Minimize surprises, unless... Make sure the pieces “fit” Reinforce the new

Remember... b b If change is the only constant in organizations, then... b b Organizations must be constantly ready to change.

Sustaining versus Disruptive Innovation b b What do successful companies do well? They become good at responding to evolutionary changes in their markets. They typically do this with sustaining technologies.

The Innovator’s Dilemma b b Sustaining Technologies – those technological changes that improve the performance of established products along dimensions of performance that mainstream customers in major markets have historically valued. b b Examples?

Technological change and the market Time Product Performance Performance demanded at the high end of the market Performance demanded at the low end of the market Progress due to sustaining technologies

The Innovator’s Dilemma b b Disruptive Technologies – those technological changes that initially underperform established products in mainstream markets. The resulting products are often cheaper, simpler, smaller, and, frequently more convenient to use than existing products. b b Examples?

Time Product Performance Performance demanded at the high end of the market Performance demanded at the low end of the market Progress due to sustaining technologies Progress due to disruptive technologies Disruptive technological innovation Technological change and the market

The Innovator’s Dilemma b b Principles of Disruptive Innovation Companies depend on customers and investors for resources. Markets that don’t exist can’t be analyzed.

The Innovator’s Dilemma b b To Harness the Power of Disruptive Innovation: Align the disruptive technology with the right set of customers. Recognize failure as a step toward success.