Chapter 7: Innovation and Change

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Exam 2 Study Set

Organization Innovation

The successful implementation of creative ideas in organizations.

Organizational Change

A difference in the form, quality, or condition of an organization over time.

Define: Technological Cycle

A cycle that begins w/ the birth of a new technology and ends when that technology reaches its limits and it's replaced by a newer one.

Innovation Streams

Patterns of innovation streams over time that can create sustainable competitive advantage.

Technology Cycle Process:

Begins with technological discontinuity and followed discontinuous change, followed by dominant design.

Technological Lockout

Occurs when a new dominant design prevents a company from competitively selling its products or makes it difficult to do so.

Incremental Change

A phase in which companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

6 Components of Creative Work Environment

Challenging Work
Organizational Encouragement
Supervisory Encouragement
Work Group Encouragement
Freedom
Lack of Organization Impediments

5 Aspects of EAI (Experimental Approach to Innovation):

1. Design Iteration
2. Testing
3. Milestones
4. Multifunctional Teams
5. Powerful Leaders

5 Aspects of CAI (Compression Approach to Innovation):

1. Planning
2. Supplier Involvement
3. Shortening the time of Individual Steps
4. Overlapping Steps
5. Multifunctional Teams

5 Stages of Organizational Decline:

1. Blinded Stage
2. Inaction Stage
3. Faulty Action Stage
4. Crisis Stage
5. Dissolution Stage

General Electric Workout

3-day meeting where managers/employees from different levels/parts of an organization quickly generate and act on solutions to specific business problems.

Types of Large System Interventions:

1. Socio-Technical Systems
2. Survey Feedback

Types of Small Group Interventions:

1. Team Building
2. Unit Goal Setting

Types of Person Focused Intervention:

1. Counseling/Coaching
2. Training

Compression Approach to Innovation

Belief that incremental approach can be planned and compressing time can speed up innovation.

Experimental Approach to Innovation

Belief that innovation occurs w/in an uncertain environment and that they key to fast production is intuition, flexible options, and hands-on experience.

Freedom

Having autonomy over one's day-day work and a sense of ownership and control over one's ideas

S-Curve Pattern of Innovation

Characterized by slow initial progress, then rapid progress, and then slow progress again as technology improves and reaches its limits.

Organizational Decline

Occurs when companies don't anticipate, recognize, neutralize, or adapt to the internal or external presses that threaten their survival.

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