business management chapter 11

cooperation strategy elements:

- horizontal coordination mechanisms - customers, partners - open innovation

innovation roles strategy elements:

- idea champions - new venture teams - skunkworks - new venture fund

creative organizations

- loosely structured - those that have an internal culture of playfulness, freedom, challenge, and grass-root participation

to effectively implement change, it is important to:

be aware of the reasons people resist change and to use techniques that can overcome resistance and enlist employee buy-in

innovative companies use a

bottom up approach

people change

change in the attitudes and behaviors of a few employees

technology change

change in the organization's production process; how an organization does its work; designed to make production more efficient

In the past, most businesses generated their own ideas in house and then developed, manufactured, marketed, and distributed them, which is a: (cooperation)

closed innovation approach

The most straightforward way to enlist the help of a crowd is with a:

contest

successful change requires that organizations be capable of both:

creating and implementing ideas, which means the organization must learn to be ambidextrous

cooperation strategy for changing products/technologies

creating conditions and systems to facilitate internal and external coordination and knowledge sharing

reverse innovation

creating innovative, low-cost products for emerging markets and then quickly and inexpensively repackaging them for sale in developed countries

The Internet has made it possible for companies to tap into ideas from around the world and let hundreds of thousands of people contribute to the innovation process, which is why some approaches to open innovation are referred to as:

crowdsourcing

people and organizations outside the firm can be

rich sources of innovative ideas

example of people change

sending a handful of middle managers to a training course to improve leadership skills

skunkworks

separate, informal, highly autonomous, and secretive group that focuses on breakthrough ideas

horizontal linkage model

several departments work closely together to develop new products

one variation of a new venture team -

skunkworks

new venture teams are:

small, loosely structured and flexible, reflecting the characteristics of creative organizations

disruptive innovation refers to innovations that:

start out small and end up completely replacing existing products and services

Ideas for product and technology innovations typically originate at lower levels of the organization and:

need to flow horizontally across departments

2 key aspects of change in organizations:

- changing organizational things (products and technology) - changing organizational people and culture

exploration strategy elements:

- creativity - bottom up approach - internal contests - idea incubators

2 concepts that address the need for change in today's environment:

- disruptive innovation - ambidextrous approach

3 critical innovation strategies for changing products and technologies:

- exploration - cooperation - innovation roles

strategies for overcoming resistance and implementing change involve 3 approaches:

- making people aware of the need for change by creating a sense of urgency - analyzing resistance through the force-field technique - using selective implementation tactics

organization development can help managers address 3 types of current problems:

- mergers/acquisitions - organizational decline/revitalization - conflict management

reasons people resist change

- self interest - lack of understanding and trust - uncertainty - different assessments and goals

organization development consultants use a variety to meet their goals; most popular techniques:

- team building activities - survey feedback activities - large group interventions

2 specific tools managers can use to smooth the culture change process:

- training and development programs - organization development

example of change and innovation being spurred by forces outside the organization

- when a powerful customer demands annual price cuts - when a key supplier goes out of business - when new government regulations go into effect

new venture fund (innovation roles)

provides resources from which individuals and groups can draw to develop new ideas, products, and businesses

innovation by acquisition

A strategy to obtain innovation by buying other companies, recognizing that the cutting edge of innovation often happens with young, small, entrepreneurial companies rather than inside the walls of established firms

product change

a change in an organization's product or services output

horizontal linkage models are important in:

a high pressure business environment that requires rapidly developing and commercializing products and services

product/service innovation is the primary way in which organizations:

adapt to changes in markets, technologies, and competition

organizational change

adoption of a new idea or behavior by an organization

Some organizations build formal strategic partnerships, such as: (cooperation)

alliances and joint ventures to improve innovation success

Successful companies often include: (cooperation)

customers, strategic partners, suppliers, and other outsiders directly in the product and service development process

with an ambidextrous approach, managers:

encourage flexibility and freedom to innovate and propose new ideas with creative departments but they use a more rigid centralized, and standardized approach for implementing innovations

Successful innovation requires expertise from several departments simultaneously, and failed innovation is often the result of:

failed cooperation

example of open innovation

game maker Rovio extended the commercialization of the Angry Birds brand into books, movies, and toys by letting outsiders license the popular gaming app

creativity (exploration strategy)

generation of novel ideas that might meet perceived needs or respond to opportunities for the organization

essence of skunkworks:

highly talented people are given the time and freedom to let creativity reign

one approach to successful innovation: (cooperation)

horizontal linkage model

organization development focuses on:

human and social aspects of the organization

a loose, flexible structure and greater employee freedom are excellent for the creation and initiation of ideas; however, these same conditions often make it difficult to:

implement a change because employees are less likely to comply

final step in the change process

implementation

many companies are undergoing a transformation in the way they find and use new ideas, focusing on:

improving both internal and external coordination and cooperation

organization development practitioners become involved in broader issues that contribute to:

improving organizational life

ambidextrous approach

incorporating structures and processes that are appropriate for both the creative impulse and the systematic implementation of innovations

disruptive innovation

innovations in products, services, or processes that radically change competition in an industry

exploration strategy for changing products/technologies

involves designing the organization to encourage creativity and the initiation of new ideas

bottom-up approach

involves encouraging the flow of ideas from lower levels and making sure they get heard/acted upon by top executives

large-scale culture change:

is not easy

culture change

major shift in the norms, values, and mindset of an entire organization

The third aspect of product and technology innovation is creating structural mechanisms to:

make sure new ideas are carried forward, accepted, and implemented

successful companies might emphasize training and development for:

managers

innovation role strategy for changing products/technologies

managers put in place processes and structures to ensure that new ideas are carried forward for acceptance and implementation

companies affected by disruptive innovation:

may be put out of business

change, especially change associated with disruptive innovation is:

not easy and many organizations struggle with changing successfully

training

one of the most frequently used approaches to changing people's mindset

today, forward looking companies are trying a method different than closed innovation: (cooperation)

open innovation

survey feedback

organization development change agents survey employees to gather their opinions regarding corporate values, leadership, participation, cohesiveness, and other aspects of the organization, then meet with small groups to share the results and brainstorm solutions to problems identified by the results

idea incubator

organizational program that provides a safe harbor where employees can generate and develop ideas without interference from company bureaucracy and politics

successful changes involves changes in:

people and culture

idea champion (innovation roles)

person who sees the need for and champion productive change within the organization

organization development

planned, systematic process of change that uses behavioral science knowledge and techniques to improve an organizations health and effectiveness through its ability to adapt to the environment, improve internal relationships, and increase learning and problem solving capabilities

open innovation: (cooperation)

process where people research for and commercialize innovative ideas beyond the boundaries of the organization

with survey feedback, employees are engages in problem solving based on:

the data

products and service changes are related to changes in:

the technology of the organization

new venture teams give free reign to members creativity because:

their separate facilities and locations unleash people from the restrictions imposed by organizational rules and procedures

new venture team (innovation roles)

unit separate from the mainstream organization that is responsible for initiating and developing innovations

disruptive innovation is becoming a goal for companies that:

want to remain competitive on a global basis

example of culture change

when the IRS shifted its basic mindset from an organization focused on collection to one dedicated to informing, educating, and serving customers

companies that initiate disruptive innovation:

win big