Mitigating the Challenges of Disruptive Change
Creating New Capabilities Internally and cope up with changes
Business wisdom believes in problems through a rigid protocol. The data around the issue was analyzed and executed; the larger and more complex a company becomes, the more critical senior managers to train employees throughout the organization to make independent decisions about priorities that are consistent with the strategic direction and the business model of the company. The problem is magnified when companies suddenly become much bigger through mergers or acquisitions. Managers lack is a habit of thinking about their organization’s capabilities as carefully as they think about individual people’s capabilities.
The three factors affect what an organization can and cannot do: its resources, its processes, and its values. Resources are tangible resources such as people, equipment, technologies, and intangible cash resources such as product designs, brands, information, and relationships with other companies and customers. Processes mean the patterns of interaction, coordination, communication, and decision-making employees use to transform resources into products and services of greater worth. Values in this article are defined as an organization's standards by which employees set priorities that enable them to judge whether an order is attractive or unattractive, whether a customer is more important or less critical, or whether an idea for a new product is excellent or marginal.
Through their merged research, an organization might have more resource to throw at new product development and constitutes a genuine disability in managing innovation. No matter the source of their capabilities, the companies are an excellent response to evolution changes in their market. They run into trouble in handling or initiating revolutionary changes in their needs.
Sustaining versus Disruptive Technologies
While these new technologies provide opportunities to tackle long-standing problems, they do not automatically lead to better liveability for everyone. Sustaining technologies are innovations that make a product or service perform better in ways that customers in the mainstream market already value. Disruptive innovation creates an entirely new need by introducing a new kind of product or service, one that's worse, initially, as judged by the performance metrics that mainstream customers value.
Sustaining innovations are constantly developed and introduced by established industry leaders. But those same companies never raise or cope well with disruptive innovation. Why? Industry leaders are organized to create and improve products to gain an edge over the competition. They develop processes for evaluating the technology's potential for sustaining innovations and assessing their customer's needs for an alternative. Investment in maintaining technologies also fits in with the values of leading companies in that they promise higher margins from better products sold to leading-edge customers.
Disruptive innovations occur so intermittently that no company has a routine process for handling them. Furthermore, disruptive products always promise lower profit margins per unit sold and are not attractive to the company's best customers; they're inconsistent with the established company values. Therefore, large companies often surrender emerging growth markets because smaller, disruptive companies are more capable of pursuing them. Their importance can embrace small markets, and their cost structures can accommodate low margins. Their market research and resource allocation processes allow managers to modify decisions that need not be backed by careful research and analysis. All these advantages add up to the ability to embrace and even initiate disruptive change.
The Ways and Means of Disruptive Changes
Dealing with disruptive change is a process that needs to be done correctly. It starts with identifying the nature of the challenge. After accepting the challenge, there should be passion and aspiration to deal with it. Knowing what the future holds comes from a good analysis of the market and the enterprise. Another way of dealing with it is by exploring the possibilities. Consider past and present trends and make future possibilities that the company needs to be prepared to face when that time comes. After identifying the opportunities, mobilize all members' commitment and be ready to implement the required changes. With the ever-changing face of different industries, it is clear that disruptive change is inevitable. For the success of every business, the management should ensure that they can identify disruptive change indicators as early as possible and be prepared to deal with them in a way that brings as little disruption as possible.
This challenge of disruptive change can impact many companies, and its effects depend on the companies and suffers lower performances initially in the mainstream market. How well they deal with the change and adapt to it. Some businesses get swallowed in during the process, while others emerge big. After all, the consequences of a change depend entirely upon how people decide to take it. Some people try to ignore the situation and decide to do nothing about it, while others play smart and minimize the disruption a change has caused by adopting it as quickly as possible. Dealing with a disruptive change is not as hard as it may seem. You need to have proper market analysis and the enterprise's analysis as a whole. As a business manager, you need to understand the market trend and the nature of the challenge. The next step is accepting the challenge and exploring new possibilities.
Lastly, technological changes have quickly created spaces that need to be filled with changes in the affected areas. Businesses have to be run smoothly, meaning they should be able to cope with the needs of their customers. Meeting the challenge of disruptive change requires the effort of all the members involved to tackle it collectively.