TAILIEUCHUNG - Lecture Principles of Management: Chapter 18 - Charles W.L.Hill, Steven L. McShane

Chapter 18 - Managing innovation and change. In this chapter, the learning objectives are: Explain how paradigm shifts occur and describe their consequences, identify the major sources of organizational inertia, outline what is required to change the strategy and organization of an established enterprise,. | chapter 18 Managing Innovation and Change McGraw-Hill/Irwin Principles of Management © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Learning Objectives Explain how paradigm shifts occur and describe their consequences. A. Identify the major sources of organizational inertia. Outline what is required to change the strategy and organization of an established enterprise. Explain why many organizational change efforts fail and identify what managers can do to avoid failure. Discuss what managers can do to increase the ability of their organization to produce commercially successful innovations. Paradigm Shifts Occurs when a new technology or business model comes along that dramatically alters the nature of demand and competition Disruptive technology – A new technology that gets its start away from the mainstream of a market and then, as its functionality improves, invades the main market Punctuated equilibrium – A view of industry evolution asserting that long periods of equilibrium are punctured by periods of rapid change when industry structure is revolutionized by innovation Learning Objective 1: Explain how paradigm shifts occur and describe their consequences. See Text Pages: 454-460 Technology S-Curves Probability of paradigm shift increases as technology approaches natural limit. Natural limit of technology Diminishing returns Inflection point Increasing returns Accumulated R&D effort Performance/functionality of desired attributes Learning Objective 1: Explain how paradigm shifts occur and describe their consequences. See Text Page: 454 Established and Successor Technologies Successor technology automobiles Paradigm shift T1 T2 Time Performance/functionality of desired attributes Established technology: horse and cart Learning Objective 1: Explain how paradigm shifts occur and describe their consequences. See Text Page: 456 Swarm of Successor Technologies Swarm of successor technologies Discontinuity Time Performance/functionality of desired .

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• Principles of management
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