Class Notes: 9th Class

 Innovation: anything different than present into the current product or the way things are done
currently.
 Change can be of three types:
a) Episodic change: making some slight changes with the product. It is not very
frequent. It is relatively stable. Example: automobile industry.
b) Continuous change: it is made keeping in mind changing needs of customers.
Example: mobile handsets
c) Disruptive change: totally different concepts of doing things. The existing ones fail to
cope up with it. Example: Jio, Netflix.
 Areas where these changes can be brought?
a) Technology: keep in touch with environment, improving productivity, bringing the
cost down, helps in logistics. Techniques for bringing this change:
i. Structure: mechanistic to flexible structure
ii. Creating creative departments: R&D
iii. Creating a venture team
iv. Corporate entrepreneurship
v. Bottom-up exercise
b) Product and services: keep in touch with needs. For example, ZARA.
c) Strategy and structure: depend on what is the goal of the organisation. It changes very
fast. You should be ready to adopt to this change. Shifting toward horizontal
structure. Making virtual network strategy so that is will be more efficient and cost
effective.
d) Culture: It can be brought to the organisation by changing the belief system, changing
their behaviours. This is possible by bring people from diverse backgrounds. The
learnings will trigger the mind of individuals.
 Change is possible through new ideas and creativity and the change is for better. Change is
inevitable. Customer feedback and customer changing needs are important for change.
 Idea generation methods: This is done with the help of coordination. There are basically three
departments responsible for bring change in the organisation are R&D, sales and marketing
and production department. This is done with close contact with changing needs of the
customers.
 Boundary spanning: R&D taking with tech department, marketing dept talking with
customers
 Horizontal coordination: R&D department, marketing dept, sales dept.
 Open innovation: you crowd source the ideas from the public
 Barriers of change and how we can face it:
a) Keep in mind while a change is going on, it has a cost. But during change don’t focus
on cost because cost is one time but change will be for duration
b) Failure to perceive benefits: always see the benefit rather than failure. So see the end
if you implement it on right time you will get the benefit.
c) Coordination of team members: it is important and you will get it only if you involve
them in the process from idea generation to implementations.
d) Think of uncertainties: based on experience and past history and get ready for those
obstructions.
e) Take out fear of loss
f) While implementing think of techniques that will help you to change fast
g) Keep in mind the time frame and the urgency
h) Create a vision for strategy and change