1. Innovation and Change
BA 152

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

3. Possible Targets for Change
Environment
Strategy
Technology
Products/
Services
FIT!
Processes
People
Goals
Culture
Structures
Systems

4. One Model of Change Step 1 Determine the need for change
- Current Situation
- Desired Situation
- Is the gap big enough to make a difference?

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
- Revolutionary / Top Down
- Evolutionary / Bottom Up

7. One Model of Change: Step 4
Solidify or Institutionalize the Change

8. Overcoming Obstacles to Change: Force Field Analysis
STATUS QUO
DRIVING FORCES
RESISTING FORCES
Competition
New Technologies
Changes in Strategy
New opportunities
FELT NEED FOR CHANGE
Focus on costs
Lack of benefits
Lack of coordination
Uncertainty avoidance
Fear of loss

9. To Overcome Obstacles What can you do? Education Participation
Less
More
Education
Participation
Facilitation
Negotiation
Manipulation
Coercion
Less
More
TIME
COMMITMENT

10. Making the Change Factors How Can You Do It? Speed Employee
Donald Trump
Mr. Rogers
Factors
Speed
Employee
Involvement
Resistance
Power
Execution
Fast
Slow
Little/None
Much
Destroy/Ignore
Win Over
Have
Don’t have
Evolving/Adapting
Careful Planning

11. Implementation Options
Goal or purpose of the change
Approach to the change
Breadth of the change
Pace of the change
Amount of resources needed
Type of change
Order of implementation steps

12. Implementation Options

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

14. To Insure It Works What should be done? Get top administration support
Involve those most affected by the change, if . . .
Minimize surprises, unless . . .
Start small and build, unless . . .
Make sure the pieces “fit”
Publicize successes
Reinforce the new
Evaluate results, modify as needed
Be prepared to change, again.

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. Sustaining versus Disruptive Innovation
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?
Automobiles
Disk drives
Department stores

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

19. The Innovator’s Dilemma
Disruptive Technologies
Those technological changes that initially underperform established products in mainstream markets. However, the resulting products are often cheaper, simpler, smaller, and, frequently more convenient to use than existing products.
Examples?
Disk drives
Discount department stores
Automobiles?

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

21. The Innovator’s Dilemma
What keeps organizations from recognizing and surviving disruptive innovations?
Companies depend on current customers and current investors for resources.
Small markets (those most likely served by disruptive technologies) don’t solve the growth needs of large companies.
Markets that don’t exist (like those most likely served by disruptive technologies) can’t be analyzed.
Technology supply may not equal market demand.

22. The Innovator’s Dilemma
What can organizations do to prosper from potential disruptive Innovations:
Align the disruptive technology with the right set of (probably new) customers.
Match the size of the (new) organization with the size of the market.
Recognize failure as a step toward success.
Develop new markets that value the disruptive technology.

23. Shoe Corporation of Illinois
Next Time
Shoe Corporation of Illinois