Documente Academic
Documente Profesional
Documente Cultură
Change
1
Industry Evolution and Strategic
Change
Time
3
Product and Process Innovation Over Time
Product Innovation
Rate of innovation
Process Innovation
Time
5
Innovation & renewal over the industry life
cycle: retailing
Sears,
Roebuck
and
Copany
catalog,
1918.
Rate of Change Industry breakpoints
Dominant Design
Differentiation
Differentiation Cost
New technology
Time
• E.g. televisions – vacuum tube to LCD
Evolution of Industry Structure over the Life Cycle
Customers become
Customers become
more knowledgeable
more price conscious
& experienced
Quest for new
sources of
Products become differentiation
more standardized
Diffusion of
Price competition
technology Production Production shifts intensifies
becomes less to low-wage
R&D & skill- countries
intensive
Excess capacity
increases
Bargaining power
Demand growth
slows as market of distributors
saturation approaches Distribution channels increases
consolidate 8
The World’s Biggest Companies, 1912 and 2016
(by market capitalization)
Environmental
Change
Transformation or Demise
Time
Types of change-in integrative model (1)
Scope of Change
Transformation Realignment
Example
– reorganising the Brunel University London’s admissions
and enrolment process
– Can be seen as the exercise of good management
Scope of change 2
• Transformation
– Change which cannot be handled within the
existing paradigm
– Fundamental change in strategy, structures,
systems, processes and culture
– Involves “conceptual” change, so more difficult
to accomplish successfully
– Can be seen as the exercise of leadership
Types of change-an integrative model (2)
• Adaptation
– Within current paradigm, incremental
– The most common form of change in organisations
• Reconstruction
– Rapid, a great change, but no fundamental change
to the paradigm.
– Could be a turnaround, or a major cost-cutting
programme
Types of change-an integrative model
(3)
• Evolution
– Strategic change involving paradigm change
– Anticipates need for substantial change and carries it out in
a planned way over time
– Learning organisations
• Revolution
– Rapid and major strategic and paradigm change
– Normally triggered by a crisis or threat due to strategic drift
– Unpleasant. People lose their lives in political revolutions!
Organizational Adaptation and Change:
The Sources of Inertia