THE DYNAMICS OF

INNOVATION
A
PRESENTATION
BY
“THE STELLERS”
 THE
THE ROLE
ROLE OF
OF TECHNOLOGICAL
TECHNOLOGICAL
EVOLUTION
EVOLUTION ININ SHAPING
SHAPING THE
THE
DESTINIES
DESTINIES OF
OF INDUSTRIES
INDUSTRIES & & FIRMS
FIRMS IS
IS
OFTEN
OFTEN UNDERESTIMATED.
UNDERESTIMATED.
TECHNOLOGICAL
TECHNOLOGICAL CHANGE
CHANGE IS
IS A
A KEY
KEY
FACTOR
FACTOR AS
AS BOTH
BOTH AS
AS A
A CREATIVE
CREATIVE FORCE
FORCE
IN
IN GROWTH
GROWTH OFOF ENTERPRIZES
ENTERPRIZES && AS
AS A
A
DESTRUCTIVE
DESTRUCTIVE FORCE
FORCE MAKING
MAKING THOSE
THOSE
SAME
SAME ENTERPRZES
ENTERPRZES VULNERABLE
VULNERABLE TO
TO
COMPETITION
COMPETITION
SEQUENCE OF PRESENTATION
• INTRODUCTION - SHAHID

• THE INVASION PROCESS - SADAF

• LESSONS LEARNT (Part I) - REHAN

• LESSONS LEARNT (Part II) - UMAIR

• CONCLUSION - MUNAWAR
INTRODUCTION
 AMERICAN ICE INDUSTRY-
A CASE STUDY
• AMERICAN ICE INDUSTRY THRIVED IN 19th CENTURY NEW
ENGLAND
• “ICE KING” SENT HIS FIRST SHIPMENT IN 1806
• FIFTY YEARS LATER THE COMPANY WAS SHIPPING 150
TONS OF ICE TO VARIOUS LOCATIONS
• NEW INNOVATIONS IN THE ICE INDUSTRY CUT THE
PRODUCTION COST TO 1/3rd
• BY 1870 14 FIRMS WERE CUTTING 70,000 TONS OF ICE
• ICE BUSINESS BECAME AN IMPORTANT PART OF U.S
ECONOMY
• CITY DWELLERS BEGAN PURCHASING ICE BOXES ON
GROWING NUMBERS & BY 1850, IT BECAME A NECESSITY
• MACHINE MADE ICE BEGAN TO BECOME RIVAL ON
HARVESTED ICE IN 1860
 AMERICAN ICE INDUSTRY-A
CASE STUDY(CONTINUED)
• SUMMER PRICES OF HARVESTED ICE IN THE NORTH RANGED
FROM $6-8 PER TON
• IN THE SOUTH THE PRICE WAS AS HIGH AS $125
• AS A RESULT THE SOUTH SHOWED GREATER ACCEPTANCE TO
THE NEW INNOVATIVE MACHINE MADE ICE, WHICH LATER
COSTED AS LESS AS $35
• BY 1890 THERE WERE OVER 200 ICE PLANTS IN THE SOUTH,
BLOCKING THE WAY FOR THE NEW ENGLAND’S HARVESTED
ICE
• THE ICE MERCHANTS OF THE NORTH PUSHED AHEAD WITH
THEIR OWN IMPROVEMENTS & STILL GREATER PRODUCTION
• THEY DEVELOPED & REFINED A PRODUCTION, STORAGE AND
DISTRIBUTION SYSTEM, THAT WAS REMRKABLY EFFICIENT,
SO MUCH SO, THAT THE 1886 HARVEST WAS THE BIGGEST
EVER-25 MILLION TONS!
 AMERICAN ICE INDUSTRY-A
CASE STUDY(CONTINUED)
• THE NORTHERN ICE MERCHANTS’ RESPONSE TO THE
CHALLENGES TO THEIR DOMINATING POSITION AND
THEIR FAILURE TO RECOGNISE THAT THE CHALLENGES IN
THE INDUSTRY WAS INDEED REVOLUTIOARY ILLUSTRATES
A WIDE SPREAD PATTERN
• POWERFUL COMPETITORS NOT ONLY RESIST INNOVATIVE
THREATS BUT RESIST EFFORTS TO UNDERSTAND THEM,
PREFERRING INSTEAD TO FURTHER DEEPEN THEIR
COMMITMENT TO OLDER PROCEDURES
• THE ICE INDUSTRY CASE ALSO ILLUSTRATES HOW THE
DEMISE OF A TECHNOLOGY CAN BE OBSCURED BY A
GROWING MARKET
• WHILE THE DEMAND OF ICE & REFREGERATION CONTINUED
TO EXPAND, ICE HARVESTERS STEADILY LOST MARKETS TO
PLANT MADE ICE
• THE COUP DE GRACE CAME AFTER WW-I & BY MID 1940s THE
NATURAL ICE INDUSTRY WAS GONE FOR GOOD
THE INVASION
PROCESS
 THE INVASION PROCESS
• THE INVASION PROCESS OF A RADICAL TECHNOLOGY TEND
TO FOLLOW A PREDICTABLE PATTERN
• IN MANY PRODUCT MARKETS, THERE ARE PERIODS OF
CONTINUITY, WHEN THE RATE OF INNOVATION IS
INCREMENTAL & MAJOR CHANGES ARE INFREQUENT AND
PERIODS OF DISCONTINUATION WHEN MAJOR
PRODUCTIONS/PROCESS CHANGE OCCUR
• RADICAL CHANGES CREATE NEW BUSINESSES &
TRANSFORM/DESTROY EXISTNG ONES
• AT A TIME WHEN INVADING TECHNOLOGIES FIRST APPEAR, THE
ESTABLISHED TECHNOLOGIES GENERALLY OFFER BETTER
PERFORMACE THEN DOES THE CHALLANGER, WHICH IS STILL
IMPERFECTED
• THE NEW TECHNOLOGY MAY BE VIEWED AS CRUDE, LEADING
WITH A LIMITED APPLICATION
• THE PERFORMANCE SUPERIORITY OF THE ESTABLISHED
TECHNOLOGY MAY PREVAIL FOR QUITE SOME TIME, BUT IF NEW
TECHNOLOGY HAS REAL MERIT, IT TYPICALLY ENTERS PERIOD OF
RAPID GROWTH
– EVENTUALLY THE NEW COMER IMPROVES ITS
PERFORMANCE, MATCHES THE ESTABLISHED
TECHNOLOGY& THEN ROCKETS PAST IT
LESSONS LEARNT
 LESSONS LEARNT-I
• AMERICAN HIGHER EDUCATION FACES THE SIMILAR
RADICAL INNOVATION IN DEVELOPMENT & DELIVERY OF ITS
CORE PRODUCT-KNOWLEDGE
• IT IS LIKELY THAT THE COLLAGES & UNIVERSITIES WILL BE
TRANSFORMED IN THIS CENTURY
• MACHINE MADE ICE WIDELY EXPANDED THE USE OF
REFRIGERATION & ITS VALUE IN PRESERVING &
DISTRIBUTING FOOD
• SIMILARLY, ELECTRIC REFREGERATION NOT ONLY FURTHER
EXPANDED THE USE OF REFRIGERATION, BUT IT MADE
POSSIBLE WIDE SPREAD AIR CONDITIONING & OTHER
APPLICATIONS
• THE INTERNET & MULTI MEDIA MAY ALSO HAVE THE
SIMILAR EFFECTS ON THE EDUCATION PROFESSION
• INNOVATION CAPTURES THE RICHEST EMERGING
OPPORTUNITIES & FOR A TIME, MAY BE MORE SYMBIOTIC
THEN THREATENING
• IT TOOK NEARLY HALF A CENTURYFOR MACHINE MADE ICE
TO BECOME A MORTAL THREAT TO NATURAL ICE IN ITS
MOST ESTABLISHED MARKETS
LESSONS LEARNT-I(CONTINUED)
• ESTABLISH LEADERS IN THEIR FIELDS FACE TWO MAJOR HURDLES
IN THEIR CONTEST WITH INVADING INNOVATIONS: -
– LEADERS NEED TO DEVELOP AN AWARENESS OF THEIR OWN
VULNERABILITY
– TO MAKE NECESSARY ORGANIZATIONAL ADJUSTMENTS
• THE CHALLANGER BRINGS A NEW & PERFECTIBLE PRODUCT WITH
BETTER PERFORMANCE, ORGANIZATIONAL FLEXIBILITY &
ENTREPRENEURIAL SPIRIT
• THE ESTABLISHED FIRM IS MORE BUREAUCRATIC, ENJOYS
ECONOMY OF SCALES, HAS TREMENDOUS INVESTMENTS IN
INFLEXIBLE SYSTEM & IS MOST LIKELY MANAGED BY NON-
ENTREPRENEURS
• IN THE EARLY STAGES, IT IS FAR FROM CLEAR THAT THE RADICAL
INNOVATION WILL HAVE MUCH IMPACT
• IT TAKES A RARE KIND OF LEARDESHIP TO SHIFT RESOURCES FROM
WHERE ONE CURRENTLY ENJOYS SUCCESS TO AN AREA THAT IS
NEW AND UNPROVEN
• AN UNHAPPY BY-PRODUCT OF SUCCESS IN ONE GENERATION OF
TECHNOLOGY IS A NARROWING OF FOCUS & VULNERABILITY TO
COMPETITORS CHAMPIONING THE NEXT TECHNICAL GENERATION
• MODERN MANAGERS MUST DEVELOP A BROAD VISION OF FUTURE &
NOURISH ORGANIZATIONAL CAPABILITIES THAT WILL CARRY
THEM SUCCESSFULLY
 LESSONS LEARNT-II
• RESEARCH OVER THE LAST CENTURY REVEALS A
TIMELESS CHARACTERISTICS, NAMELY, RESPECT
FOR THE HUMAN RESOURCES & SKILLS & THEIR
CONTINUED DEVELOPMENT
• THE MOST IMPORTANT STRATEGY OF ALL APPEARS
TO LIE IN TOP MANAGEMENT’S APPRECIATION OF
THE PEOPLE & IN RESPECT FOR THEIR ABILITY TO
LEARN & ADAPT TO CHANGING & CHALLANGING
CIRCUMSTANCES
• THE BEST LEADERS WILL DEVELOP CONTINGENCY
PLANS TO ADDRESS THE UNEXPECTED
CIRCUMSTANCES, THAT ARE ALMOST CERTAIN TO
ARISE
• THOSE UNEXPECTED CHANGES WILL OPEN WAY TO
GREATER OPPORTUNITIES THEN AT FIRST
IMAGINED
– MULTI-MEDIA EDUCATION TOOLS ILLUSTRATE THE
POTENTIAL OF TECHNOLOGY TO ENRICH TEACHING
& LEARNING
LESSONS LEARNT-II(CONTINUED)
• NEW MULTI-MEDIA BASED METHODS OF WORKING WITH
STUDENTS & CONTENTS SIMPLY HAVE NO PRECEDENCE
• THESE TOOLS HELP BUILD NETWORK THAT BRING IN
DIVERSE INFORMATION & ENCOURAGE EXPERIMENT
• THE “15 ASSOCIATED COLLAGES” OF THE SOUTHERN USA
ARE COLLABORATNG BY USING TECHNOLOGY TO POOLTHE
RESOURCES OF THEIR INDIVIDUAL CLASSIC DEPARTMENTS
& CREATE A POWERFUL EXAMPLE OF THE BENEFIT TO BE
GAINED BY WORKING TOGATHER
• WE ARE ON THE THRESH HOLD OF BREAKING DOWN
DIVISIONS ACROSS DISCIPLINES AS WELL AS ACROSS
INSTITUTIONS
• TECHNOLOGY ENABLES SCHOLARSHIP &
EXPERIMENTATION, THAT BREAKS OUT OF THE
BOUNDRIES THAT SEPARATE US
• ONE POTENTIAL RESULT OF THE MULTIMEDIA TOOLS
EFFORTS DESCRIBED ABOVE IS TO
ALLOW ENDEAVOURS TO BE PURSUED ON
A SMALL BUT EFFICIENT SCALE
CONCLUSION
 DIRECTION OF CHANGE & PROGRESS IS OFTEN
UNCLEAR EXCEPT IN HIND SIGHT
 WHEN & HOW CHANGE WILL OCCUR IS NOT SO
IMPORTANT, AS IS RECOGNIZING THAT IT
UNDOUBTEDLY WILL HAPPEN
 IN THE FINAL ANALYSIS, ONLY THAT
UNDERSTANDING WILL ALLOW INSTITUTIONS TO
SUCCESSFULLY MAKE THE TRANSITION TO A NEW
FUTURE
 FOR HIGHER EDUCATION TO PLAY A MEANINGFUL
ROLE IN BUILDING A NEW & BETTER FUTURE FOR
THE WORLD’S CITIZENS, EDUCATION MUST BE
MADE MORE WIDELY AVAILABLE, MORE REASONABLY
PRICED & MORE TAILORED TO LEARNERS
 INNOVATION IN TECHNOLOGY & NEW LEARNING
MEDIA HOLD TREMENDOUS PROMISE FOR
ACHIEVING THOSE GOALS
ANY QUESTIONS