MGM102H5 Chapter 3: Chapter #3 – Managing Innovation and Change
Document Summary
Paradigm shift occurs when new technology or business model comes along that dramatically alters the nature of demand and competition. Enterprises have to adopt new business strategies. Paradigm shifts occur in industries when 1 or more conditions occur: The established technology in the industry is mature and. A new disruptive technology has entered the marketplace and is approaching its natural limit taking root in market niches that are poorly served by established companies that use the established technology. A company develops a new business model that is radically different from that used by competitors, enabling it to capture more demand and puts rivals on defense. Richard foster invented technology s-curve which is the relationship between the performance of a technology and time. Rate of improvement in performance slows and technology starts to reach its natural limit where improvements cannot happen. When technology approaches its natural limit, research attention turns to possible alternative technologies.
