Disruptive Innovation Overview
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Questions and Answers

Which of the following is NOT a technique for managing resistance to change?

  • Participation
  • Facilitation and Support
  • Education and Communication
  • Resource Allocation (correct)

What is the key difference between creativity and innovation?

  • Creativity is a personal trait, while innovation is a team effort.
  • Creativity is a mental process, while innovation is a physical process.
  • Creativity involves generating ideas, while innovation is the practical application of those ideas. (correct)
  • Creativity is a subjective process, while innovation is a measurable outcome.

Which of the following is NOT a form of innovation listed in the text?

  • Applied research
  • Curiosity-driven research
  • Research and development
  • Market research (correct)

Which of the following is NOT a structural factor that encourages innovation?

<p>Centralized decision-making (B)</p> Signup and view all the answers

What does "throw the bunny" refer to in the context of Mattel's culture?

<p>A strategy to encourage employees to take risks and experiment with new ideas (D)</p> Signup and view all the answers

Which type of personality is most likely to experience stress due to their urgency and competitiveness?

<p>Type A (A)</p> Signup and view all the answers

Which of the following is NOT a type of stressor discussed in the text?

<p>Job Dissatisfaction (D)</p> Signup and view all the answers

Which of the following statements accurately describes the difference between internal managers and external consultants in managing change?

<p>External consultants bring a new perspective but may not be familiar with company history, while internal managers are more familiar with company history but may be cautious in implementing change. (D)</p> Signup and view all the answers

What best defines disruptive innovation?

<p>Innovations that radically alter the competitive landscape. (A)</p> Signup and view all the answers

Which of the following historical examples illustrates disruptive innovation?

<p>Ford's automobile replacing horse-drawn carriages. (B)</p> Signup and view all the answers

What is a key difference between sustaining and disruptive innovation?

<p>Sustaining innovation involves small improvements, disruptive creates drastic change. (B)</p> Signup and view all the answers

Why are established companies often vulnerable to disruptive innovation?

<p>They resist change due to entrenched processes and cultures. (A)</p> Signup and view all the answers

Which of the following statements about resistance to change is true?

<p>Established companies often perceive disruptive innovation as a threat. (B)</p> Signup and view all the answers

What can lead to the failure of well-known companies in the face of disruptive innovation?

<p>Complacency and resistance to new ideas. (B)</p> Signup and view all the answers

Which of the following innovations was initially overlooked but later widely adopted?

<p>Xerox's computer mouse and graphical user interface. (C)</p> Signup and view all the answers

Why might smaller businesses be more adept at innovation compared to larger companies?

<p>They demonstrate greater agility and innovation capacity. (B)</p> Signup and view all the answers

Which of the following is NOT a force driving change within organizations?

<p>Increased competition from emerging markets (C)</p> Signup and view all the answers

What is the main takeaway for entrepreneurs from the example of Tesla?

<p>New businesses can succeed by offering simpler and more affordable alternatives to existing products or services. (D)</p> Signup and view all the answers

What is the primary difference between the Calm Waters and White-Water Rapids metaphors of change?

<p>The Calm Waters metaphor suggests change is managed through a structured process, while the White-Water Rapids metaphor emphasizes the chaotic and unpredictable nature of change. (C)</p> Signup and view all the answers

Which of these is an example of how economic change can necessitate organizational adaptation?

<p>A company undergoing a restructuring to become more competitive in a changing labor market. (A)</p> Signup and view all the answers

What is the purpose of creating autonomous teams or "skunk works" within large organizations?

<p>To provide a safe space for employees to experiment and try new approaches. (C)</p> Signup and view all the answers

Which of these is NOT a key category of organizational change?

<p>Political Change (B)</p> Signup and view all the answers

How can managers effectively address the challenges of workforce composition changes?

<p>By promoting a culture of diversity and inclusion where individuals feel valued and respected. (C)</p> Signup and view all the answers

What is a change agent in the context of organizational change?

<p>A person or entity that catalyzes and facilitates organizational change. (B)</p> Signup and view all the answers

Flashcards

Organic Structures

A characteristic of organizational structures that encourages collaboration across different departments, fostering innovation.

Creativity

The ability to generate new and unique ideas, a foundational step in the innovation process.

Innovation

Applying creative ideas in practical ways to develop novel products, processes, or solutions.

Role Conflicts

A workplace situation where an individual faces conflicting expectations or demands, potentially leading to stress.

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Role Overload

A situation where the demands and expectations of a job exceed the time available to fulfill them effectively.

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Role Ambiguity

A situation where the expectations and responsibilities of a role are unclear or ambiguous, leading to confusion and stress.

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Type A Personality

A personality trait characterized by a sense of urgency, competitiveness, and a strong drive to achieve, which can increase susceptibility to stress.

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Participation in Change Management

Encouraging employees to participate in decision-making related to change initiatives, fostering commitment and ownership.

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Disruptor

When newcomers like Tesla shake up established players in the auto industry, they're disrupting the status quo.

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Digital Disruption

Digital platforms like online banking transformed traditional sectors by offering more convenient alternatives.

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Opportunity for Entrepreneurs

Entrepreneurs can thrive by identifying unmet needs and providing simpler, more affordable solutions than existing companies.

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Skunk Works for Innovation

Larger companies can foster innovation within their own structures by creating 'skunk works' - teams that explore new ideas without the constraints of their main business.

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Change Management

Change is a constant in organizations, requiring effective handling to maintain stability and progress.

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Forces Driving Change

Factors like pandemics, shifting consumer preferences, new regulations, and technological advancements constantly push organizations to adapt.

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Technological Change: Adaptation

Technological advancements, like streaming services, necessitate rapid adaptation by businesses to stay relevant and competitive.

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Types of Organizational Change

Changes can be categorized into economic shifts, new business strategies, adjustments to workforce diversity, introduction of new technologies, and evolving employee attitudes.

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Disruptive Innovation

Innovations that drastically change an industry by introducing new, lower-cost alternatives, often targeting overlooked market segments. Usually initiated by smaller companies with less baggage.

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Sustaining Innovation

Incremental upgrades to existing products or services, focusing on enhancing current features and technologies. Example: A high-definition TV.

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Creative Destruction

The concept that capitalism replaces outdated technologies with superior ones, leading to significant shifts in industries.

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Resistance to Change

Established companies often find it difficult to adapt to disruptive ideas due to their investment in existing processes, values, and market positions.

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Disruptive Advantage of Smaller Businesses

Smaller businesses often have greater agility and innovation capacity, enabling them to challenge established companies with disruptive technologies or models.

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Overlooked Innovation

Disruptive ideas initially seen as unimportant can later become widely adopted and successful. Example: The computer mouse, initially developed by Xerox, is now a standard feature.

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Vulnerability of Established Companies

Established companies, due to heavy investments in existing technologies and markets, face greater risk from disruptive innovation compared to smaller and more flexible competitors.

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Disruptive Dynamics

The process by which new technologies or business models completely replace existing ones, causing significant shifts in market dynamics. Example: Walmart's disruption of traditional department stores.

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Study Notes

Disruptive Innovation

  • Refers to innovations that significantly alter an industry's competitive landscape.
  • Typically originates from smaller companies targeting underserved markets with cheaper alternatives.
  • Often associated with "creative destruction," replacing outdated technologies with superior ones.

Historical Examples

  • Railroads replaced sailing ships.
  • Telephones replaced telegraphy.
  • Automobiles replaced horse-drawn carriages.

Sustaining vs. Disruptive Innovation

  • Sustaining Innovation: Incremental improvements to existing products/services (e.g., high-definition TVs, fingerprint recognition).
  • Disruptive Innovation: Fundamental changes replacing entire industries (e.g., new technologies or business models).

Importance of Disruptive Innovation

  • Success can lead to failure: Established companies may become complacent and vulnerable to disruption.
  • Resistance to change: Established companies can view disruptive ideas as threats to their market power.

Vulnerable Businesses

  • Established companies are at greater risk of disruption due to existing investments.
  • Smaller companies often demonstrate greater agility and innovation.

Examples of Disruptive Innovation

  • Xerox' inventions (computer mouse, GUI) were later widely adopted.
  • Failed disruptive innovations like BlackBerrys, Segways, and Google Glass.

Implications for Entrepreneurs and Managers

  • Innovative individuals can capitalize on opportunities with simpler, more affordable alternatives.
  • Large organizations should create autonomous teams (skunk works) for innovation.

Management of Organizational Change

  • Change is an inherent aspect of organizational life.
  • Forces driving change include pandemics, changing consumer preferences, new regulations, and technological advancements.

Technological Change

  • Technological advancements compel entire industries to adapt (e.g., streaming services like Netflix).

Types of Organizational Change

  • Economic Change: Shifts in labor markets and economic conditions impacting companies.
  • New Organizational Strategies: Changes in business strategies necessitate operational shifts.
  • Workforce Composition Changes: Diversity necessitates adapting to different work preferences.
  • New Technology: Groundbreaking innovations impact entire industries (e.g., 3-D printing).
  • Changing Employee Attitudes: Significant changes can lead to employee stress and resistance.

Metaphors of Change

  • Calm Waters Metaphor: Change is a three-step process (unfreezing, changing, refreezing) in a stable environment.
  • White-Water Rapids Metaphor: Represents the chaotic and continuous nature of change.

Types of Change Agents

  • Internal Managers: Deeper understanding of company culture, can be cautious.
  • External Consultants: Objective perspectives, may lack familiarity with history.

Techniques for Managing Resistance to Change

  • Education and Communication: Keeping employees informed about the reasons behind changes.
  • Participation: Involving employees in decision-making for fostering commitment.
  • Facilitation and Support: Providing resources to help employees navigate change.
  • Negotiation: Offering incentives for buy-in.
  • Manipulation and Co-optation: Subtle tactics to manage resistance.
  • Coercion: Forceful methods for change.

Creativity and Innovation

  • Creativity: Generating unique ideas.
  • Innovation: Practical application of creative ideas.
  • Adaptability: Necessary organizational trait to anticipate changes.

Forms of Innovation

  • Curiosity-driven research.
  • Applied research.
  • Research and development.

Structural and Cultural Variables for Innovation

  • Structural Factors:

    • Organic structures encourage collaboration.
    • Ample resources are critical.
    • Supportive communication bridges gaps.
    • Fostering creative outcomes through minimizing time pressures.

  • Cultural Characteristics:

    • Acceptance of ambiguity and risk-taking.
    • Creating a culture that embraces failures.
    • Encouraging experimentation.

Employee Stress

  • Stress negatively impacts individuals when facing high demands, constraints, or opportunities.
  • Types of Stressors:
    • Role conflicts.
    • Role overload.
    • Role ambiguity.

Personality Types and Stress

  • Type A Personality: Characterized by urgency and competitiveness.
  • Type B Personality: More relaxed approach to time and achievement.

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Description

Explore the concept of disruptive innovation and its impact on various industries. This quiz covers key characteristics, historical examples, and the differences between sustaining and disruptive innovation. Discover why established companies often fail to adapt and how new technologies can reshape competitive landscapes.

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