BUS705 Innovation and Management Decision Making Online Tutoring
The Undeniable Power of ‘Innovation Paradigm Shifts’ in Business
Imagine using Kodak camera, Nokia phone and DVDs for movie. Sounds too odd, right? These elements seem a disaster today. But, it worked for decades why not now? Nowadays cutting edge technologies integrate in the business environment, evolving business strategies as well. From block chain technology to the use of robotics and artificial intelligence, either keeping up or staying ahead with the increase tech competition has become a challenge for companies. Today, company revolves around to develop new business models so that they can accommodate disruptive technologies.
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To gain a better understanding let’s consider the example of Netflix. It started as a mailing DVD business and currently holding global steaming business? How did they make a long way in the technological disruptive world? Did it go through transformational change? The success may seem straightforward but even inevitable. The paradigm this business adopted to succeed disruptive innovation were; Think big, start small, fail quickly and scale fast. The Founder, Hastings pursued big idea of streaming video even though he had a threat to lose his successful mail-based DVD business. Late he started with small projects, where companies supported his big ideas. When his early effort to stream video seemed iffy, he stopped playing bad hands to work for next.
The new generated ideas for innovation are communicated over time and diffused, through many communication channels and among members of social system. Diffusion theory by Roger contends that information is embodied in technological innovation and its acceptance reduces uncertainty. To illustrate it, he referred solar panel innovation as to reduce uncertainty over reliability of energy supply and future energy cost. Are all innovations easy to diffuse in social system? Roger marks relative advantage, compatibility, complexity, trial ability, visibility a major characteristic of innovation that affects diffusion. The out-dated concept is meaningful in any business model as consumers commercialize the new product which helps in diffusing the innovation. Therefore, business gets a clear trend and likelihood of their new introduced product.
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Do we still store the data in registers and files? I doubt, who would when you can store information in data servers and cloud technology. Business environments have changed all around due to change in technological and sociocultural trend. Even the research and development in companies have changed the functioning adopting advanced techniques for product development. Example: Boeing and Siemens, created huge investment to adapt 3D printing technique for product designing. The paradigm shift will enhance effectives of designing, improve designing process and decrease production cost.
References:
Tatnall, A, ‘Information Systems Innovation-Two different Models,’ School of Information System, viewed on 3rd April 2020, <https://pdfs.semanticscholar.org/6f5a/1b6dce71af5bece7297d89786a6e97fa847c.pdf>
Feldman, D 2019, ‘Netflix’s Dominance In U.S. Wanes As Hulu, Amazon Gain Subscribers,’ Forbes, 21 August, viewed 3 April 2020, <https://www.forbes.com/sites/danafeldman/2019/08/21/netflix-is-expected-to-lose-us-share-as-rivals-gain/#74b3afa566d6>
Bubenzer-Paim, A 2018, ‘Tech Innovation Requires Executives To Overcome Resistance To Change,’ Forbes, 7 August, viewed 3 April 2020, <https://www.forbes.com/sites/forbestechcouncil/2018/08/07/tech-innovation-requires-executives-to-overcome-resistance-to-change/amp/>
Mui, C 2011, ‘How Netflix Innovates and Wins,’ Forbes, 17 May, viewed 3 April 2020,
<https://www.forbes.com/sites/chunkamui/20s11/03/17/how-netflix-innovates-and-wins/>
Olson, P 2015, ‘Apple Pay Face New Challenge From Barclays Contactless Devices,’ Forbes, 29 June, viewed 3 April 2020, <https://www.forbes.com/sites/parmyolson/2015/06/29/apple-pay-barclays-contactless-wearables/#291753d330d7>
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