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Innovation and Change

Innovation and Change. BA 152. Pressures for Innovation and Change. Global Markets. Competition. ORGANIZATIONAL CHANGE. Technology. Faster Cycle Times. New Work Structures. Demographics. Possible Targets for Change. One Model of Change: Step 1. Deter mine the need for change -

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Innovation and Change

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  1. Innovation and Change BA 152

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

  3. Possible Targets for Change

  4. One Model of Change: Step 1 Determine the need for change - - -

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

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

  7. One Model of Change: Step 4

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

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

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

  11. Implementation Options

  12. Implementation Options

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

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

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

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

  17. The Innovator’s Dilemma • 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. • Examples?

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

  19. The Innovator’s Dilemma • 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. • Examples?

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

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

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

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