CHANGE and INNOVATION

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CHANGE and INNOVATION
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Difference Between the Two

• Change alteration to the status quo
• Innovation new idea applied to initiating or
  improving a process
• Uncertainty
• Knowledge-intensive
• Controversial
• Cross-organisational boundaries

All innovations imply change but not all change
is innovation.
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Forces for Change and Innovation

• External Forces
• Internal Forces
• Strategy and plan changes
• Ethical difficulties
• Decisions on C I
• Culture shifts
• Restructures
• Technological leadership changes

Key Organisational Change Components and Their
Interaction

• Structural Components
• Technological components
• Human resource components
• Cultural components

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Organisational Life Cycles(Table 8.1 Figure
8.2 Table 8.2 8.3))

• Entrepreneurial Stage
• New little planning and coordination
• Prime inventor makes decisions
• Collectivity Stage
• Others believe in the idea strong group
  identification sense of mission long hours
• Crisis when growth increases and poor leadership
  and direction
• Formalisation and Control Stage
• Departments organised into areas efficiency
  rules and procedures
• Crisis red tape and centralised control
• Elaboration-of-structure stage
• Streamline bureaucracy decision making
  decentralised REVITALISATION
• Challenge of stabilisation/decline which result
  in dysfunction and possible termination of
  organisation

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Change Management and the Innovation Process

• Two change types
• Reactive change
• Planned change
• Eight-Step Model for effective change and
  innovation
• Recognise opportunity or problem
• Line up powerful sponsor(s)
• Develop and communicate a vision
• Empower others to act out the vision
• Prepare to overcome resistance
• Plan for and reward visible progress
• Consolidate improvements and facilitate further
  change
• Monitor and institutionalise changes

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Organisational Development

• What is it?
• The three major steps
• Diagnosis
• Intervention
• Process consultation
• Team building
• Third-party intervention
• Technostructural activities
• Evaluation

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Innovation for Competitive Advantage

• Four factors
• I should be hard to imitate
• Reflect market realities
• Exploit particular industrys timing
  characteristics
• Rely on accessible capabilities and technologies
• Product Development Principles
• Establish a stage-gate development funnel
• Establish a cross-functional team
• Use concurrent engineering
• Involve both customers and suppliers
• Intrapreneurship
• Value of Knowledge