#7 Innovation & Change

External forces in the general and task environments can force the organization to alter the way it competes.​

In terms of Internal​, Internal forces inside the organization cause it to change its structure and strategy​. Some internal forces are responses to external pressures.​

There are three steps, Unfreeze->Change->Refreeze.

Unfreeze, determines what needs to change, ensure there is strong support from management, than create the need for change, manage and understand the doubts and concerns.

Change, communicate often, dispel rumors, empower action, involve people in the process.

Refreeze, focus the change into the culture, develop ways to sustain the change, provide support and training, lastly, celebrate successes.

Encourage active participation in change process.

Provide education and communication about change process.

Facilitate change process by:​ Making only necessary changes​, Announcing changes in advance, Allowing time to adapt to change.

Type of innovation that creates a new market and value network. - Eventually disrupts an existing market and value network​. - Displaces established market leading firms, products and alliances. - Additional drivers of innovative activity include the growth of a technology​

Disruptive innovation is typically marked by a transfer of control to consumers, an increase in affordability, an increase in choice, making a technology more accessible, or giving consumers a voice.  ​

In other words, Disruptive Innovation is an innovation that simplifies and makes more affordable products and services to undesirable or ignored markets. Established companies typically strive to improve their products and services for their profitable customer base, largely ignoring the needs and desires of untapped segments.

1. Product and Service innovations.

2. Process innovations

3.Managerial innovations

4. Marketing innovations

5. Institutional innovations

1. Product and Service innovations.(Changes observed by the customer and regarded as new​ / First Apple iphone)

2. Process innovations. (Faster, Better Quality, Cheaper, More Choice​ /Moving from Luxury to low fare airline or Reducing the cost of product)

3.Managerial innovations. (Creating an innovation-driven culture, Empowerment​ / Working from home)

4. Marketing innovations. (Brand Loyalty, Better Customer Relationship​ / Selling a product into a new market, changing the existing competition)

5. Institutional innovations. (Franchising and Licensing Arrangements​ / change system)

DISRUPTION to Traditional Business Models​, Usually Cheaper , Undercut Traditional Business Models. Its is C2C (Customer to Customer) not traditional B2C (Business to Customer)​

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Reach, Interaction, and Resilience.-

The Reach principle correlates the Share and Connect levers with user growth rates. The organization’s potential reach depends on the number of people, situations, and things connected through the networks on which it operates and the number of value units that users can freely share with others.

The Interaction principle is the result of the correlation between the Collect and Empower levers, i.e., the number of value units included in the inventory and the number of roles that users can play.

Finally, an organization’s Resilience depends on the number of business partners that have developed their commercial offerings and lifestyles-based on its standards and market and the number of people who feel a sense of shared ownership of its open resources

Lack of resources​, Failure to recognize opportunities​, Resistance to change​, Lack of Organisational Culture to support innovation and change​, Lack of incentive to drive innovative change​.

Reward Systems​, Supportive Organisational Culture​, or Encourage “INTRAPRENEURSHIP” in larger orgainsations, for example, Inventors​, Product Champions​, Sponsors​, A corporate manager who starts a new initiative for their company which entails setting up a new distinct business unit ​