In terms of business, innovation is fresh thinking that creates value and it does not necessary have to be a new technology. It is the business model that is attached with good services. Innovation is different from and bigger than invention. The most important of innovation is to create value for customers, for society, for employees, for shareholders etc., it can be an old idea applies in a new place, in a new context.
“A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995.” (https://en.wikipedia.org/wiki/Disruptive_innovation)
How the top executives and management team can build a successful new-growth business?
In the book: The Innovator’s Solution – Creating and Sustaining Successful Growth of Clayton Christensen and Michael Raynor, said “A surprising number of innovations fail not because of some fatal technological flaw or because the market isn’t not ready. They fail because responsibility to build these business is given to managers or organizations whose capabilities aren’t up to the task”. The concept of “capabilities” is what an organization can and cannot accomplish based on three sets of factors:
- Resources: people, equipment, technology, product designs, brands, information, cash, relationship with suppliers, distributors, and customers.
- Processes: create value as employees transform inputs of resources into products and services of greater worth by interaction, coordination, communication, and decision making.
- Values: are the standards by which employees make prioritization decisions.
Disruptive growth makes the management team faces challenges. The larger and more complex a company becomes, the more important it is for the managers to get the right people in the right positions at the right time, to train employees at every level to make independent decisions about priorities that are consistent with the strategic direction and the business model of the company. It seems easy to say but very difficult to do. Recognizing different problems and opportunities with growth is essential for business to continue growing and thriving for the future. To ensure the business growth, you must be good enough to attract the talented people and from big companies. Challenge to grow is to nurture people, focus on your own cost, your own growth, conventional thinking, skills and good practices in many business levels.
Welcome to the age of disruptive Innovation!
The Innovator’s Solution: Creating and Sustaining Successful Growth – by Christensen, Clayton M. and Michael E. Raynor, 2003