MGM102H5 Chapter Notes - Chapter 2: Organizational Ecology, Punctuated Equilibrium, Paradigm Shift
Document Summary
Managing innovation and change paradigm shift: occurs when a new technology/business model comes along that dramatically alters the nature of demand and competition. Sometimes have to reinvent your company to survive/improve, more likely when: natural limits to technology. When a mature technology is approaching its end . R&d investments can yield large performance benefits at beginning, but eventually the rate of performance improvements will slow and new technologies will be required. Diminishing returns after the inflection point as tech approaches its natural limit (s-curve) Eventually an alternative can be commercialized to replace the established technology. Successor technology is initially less efficient than established, thus it often gets dismissed by established and customers, only to catch them off guard with rapid performance improvements. Revolutionize industry structure/competition, often cause decline of established organizations. Established often aware of, but do not invest in because their customers not interested yet. Once performance improves, will want; is now a competitor.
