ENT 601 Week 6 Blog Assignment – Is your Organization Capable of Disruptive Growth?

 

Image result for disruptive business stick personIn 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:

  1. Resources: people, equipment, technology, product designs, brands, information, cash, relationship with suppliers, distributors, and customers.
  2. Processes: create value as employees transform inputs of resources into products and services of greater worth by interaction, coordination, communication, and decision making.
  1. 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!

Resources:

The Innovator’s Solution: Creating and Sustaining Successful Growth – by Christensen, Clayton M. and Michael E. Raynor, 2003

https://en.wikipedia.org/wiki/Disruptive_innovation

https://www.youtube.com/watch?v=VGdwMddpapY

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10 thoughts on “ENT 601 Week 6 Blog Assignment – Is your Organization Capable of Disruptive Growth?

  1. Hi Mary,

    Nice post! I don’t think I’ve ever thought about innovation, or its importance, more than how much I am thinking about it in this class. When you think about it after all, without an idea and innovation, all the rest that we learn about in business wouldn’t be needed. There would be no need for accounting when no product exists to be sold, and the same goes for every other area of business. So its really great to learn more about this fundamental part of the business process!

    Austin

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    • Austin
      I can not agree with you more.
      All businesses no matter how big or small started with one persons idea.
      Innovation is the step after an idea. The moment the light bulb comes on, the Eureka moment.
      This class is making me have many moments like this.
      I appreciate your comments so much.
      Mary

      Like

  2. I liked your discussion of invention vs innovation. I realize it may seem simple but I hadn’t quite thought about the differences. The creating value piece is critical. The book I’m reading is How Hits Happen, and I think that’s the piece my author is missing too. He implies that creating value is important for creating a hit– but I think it would be more powerful if he said it. Sometimes the simple things cause you to think differently!

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    • blogoferinroberts,
      I am not sure who this is because here and on your blog you did not sign anything.
      I agree that the value of a product can be considered or perceived in many different ways. Creating Value is good and also creating even a feeling will make something sell before another product.
      Thanks for replying to my blog
      Mary

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  3. Mark Cuban is famous for this! He created an internet radio channel where people could listen to sports and music on their favorite radio stations, no matter where they were at in the country. If you lived most of your life in Chicago and had to move to Phoenix for work, you could tune in online and still listen to your favorite radio shows. As we all know, he sold that company to Yahoo for billions…but he disrupted the traditional radio market enough that exclusively online radio and sports channels began to emerge.

    Liked by 1 person

    • pawiseman1
      Wish I knew your name. Could not find it on your Blog Either?
      I agree that internet radio was not taken serious at first but now that the waters have been tested it is something all radio stations need to get involved with or left behind in the future of Radio.
      Thanks for your comment
      Mary

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  4. I like the way that Steve Jobs always thought in the real of better. A better product that the consumer didn’t even know they needed. Disruptive growth was his platform and he expected that of his team. They had to think beyond what they could see right now in order to bring it into existence. Innovation has people waiting in lines for hours to purchase the next model. Innovation create a culture that will pay the price just to say I got it first. Innovation is obsessive on both sides of the coin.

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  5. Hi Mary- great post
    I believe that an invention is compared to words on a page – but the innovation is the voice that makes the words come alive – that create emotions; reactions. Innovation is the power to make a product; service or business become successful.

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  6. I so agree with the position that innovations fail because “responsibility to build these…is given to managers or organizations whose capabilities aren’t up to the task.” I have some experience in organizational change and change management programs as a consultant and within larger organizations.

    Companies–even new entrepreneurs–want to make incremental changes to get ahead. But, innovation is not incremental. Innovation is transformational. Few companies have managers who can do much more than taking baby steps because they’re vested in how things were done or how they are being done. That thinking prevents the transformational change that true innovation requires.

    P.S. Glad to see you found the Getty Image Plugin. 🙂

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  7. I like this concept of “can and cannot” work based on resources, processes, and values. Not one of them would survive without the other, in relation to capabilities. At least, they would not survive well without each other. I guess that is the beauty of the right fit community, in this example.

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