Creating Innovative Organizations


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Creating Innovative Organizations

  1. 1. Unit Four Building Innovation
  2. 2. Unit Four <ul><li>Chapter Thirteen - Creating Innovative Organization </li></ul><ul><li>Chapter Fourteen - E-Business </li></ul><ul><li>Chapter Fifteen - Creating Collaborative Partnerships </li></ul><ul><li>Chapter Sixteen - Integrating Wireless Technology in Business </li></ul>
  3. 3. Chapter 13 Creating Innovative Organizations
  4. 4. Learning Outcomes <ul><li>13.1 Compare disruptive and sustaining </li></ul><ul><li>technologies </li></ul><ul><li>13.2 Explain how the Internet caused </li></ul><ul><li>disruption among businesses </li></ul>
  5. 5. Learning Outcomes <ul><ul><li>13.3 Define the relationship between the </li></ul></ul><ul><ul><li>Internet and the World Wide Web </li></ul></ul><ul><ul><li>13.4 Describe the Internet’s impact on </li></ul></ul><ul><ul><li>information along with how these </li></ul></ul><ul><ul><li>changes are affecting business </li></ul></ul>
  6. 6. Disruptive Technology <ul><li>How can a company like Polaroid go bankrupt? </li></ul><ul><li>Digital Darwinism – implies that organizations which cannot adapt to the new demands placed on them for surviving in the information age are doomed to extinction </li></ul>
  7. 7. Disruptive Versus Sustaining Technology <ul><li>What do steamboats, transistor radios, and Intel’s 8088 processor all have in common? </li></ul><ul><ul><li>Disruptive technology – a new way of doing things that initially does not meet the needs of customers </li></ul></ul><ul><ul><li>Sustaining technology – produces an improved product customers are eager to buy </li></ul></ul>
  8. 8. Disruptive Versus Sustaining Technology
  9. 9. Disruptive Versus Sustaining Technology <ul><li>The Innovator’s Dilemma discusses how established companies can take advantage of disruptive technologies without hindering existing relationships with customers, partners, and stakeholders </li></ul>
  10. 10. Disruptive Versus Sustaining Technology <ul><li>Companies that capitalized on disruptive technology </li></ul>
  11. 11. The Internet – Business Disruption <ul><li>One of the biggest forces changing business is the Internet </li></ul><ul><li>Organizations must be able to transform as markets, economic environments, and technologies change </li></ul><ul><li>Focusing on the unexpected allows an organization to capitalize on the opportunity for new business growth from a disruptive technology </li></ul>
  12. 12. Disruptive Versus Sustaining Technology <ul><li>Internet penetration by world region </li></ul>
  13. 13. Disruptive Versus Sustaining Technology <ul><li>World Internet Users </li></ul>
  14. 14. Evolution of the Internet <ul><li>The Internet began as an emergency military communications system operated by the Department of Defense </li></ul><ul><li>Gradually the Internet moved from a military pipeline to a communication tool for scientists to businesses </li></ul><ul><ul><li>Internet – computer networks that pass information from one to another using common computer protocols </li></ul></ul><ul><ul><li>Protocol – standards that specify the format of data as well as the rules to be followed during transmission </li></ul></ul>
  15. 15. Evolution of The World Wide Web <ul><li>World Wide Web (WWW) – a global hypertext system that uses the Internet as its transport mechanism </li></ul><ul><li>Hypertext transport protocol (HTTP) – the Internet standard that supports the exchange of information on the WWW </li></ul>
  16. 16. Evolution of The World Wide Web
  17. 17. Evolution of the World Wide Web <ul><li>The Internet’s impact on information </li></ul><ul><ul><li>Easy to compile </li></ul></ul><ul><ul><li>Increased richness </li></ul></ul><ul><ul><li>Increased reach </li></ul></ul><ul><ul><li>Improved content </li></ul></ul>
  18. 18. Evolution of The World Wide Web <ul><li>File formats offered over the WWW </li></ul>
  19. 19. Evolution of The World Wide Web <ul><li>The Internet makes it possible to perform business in ways not previously imaginable </li></ul><ul><li>It can also cause a digital divide </li></ul><ul><ul><li>Digital divide – when those with access to technology have great advantages over those without access to technology </li></ul></ul>
  20. 20. WEB 2.0 <ul><li>Web 2.0 - a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet </li></ul>
  21. 21. WEB 2.0 Timeline of Web 1.0
  22. 22. THE FUTURE – WEB 3.0 <ul><li>Semantic Web encompasses the following: </li></ul><ul><ul><li>Transforming the Web into a database </li></ul></ul><ul><ul><li>An evolutionary path to artificial intelligence </li></ul></ul><ul><ul><li>The realization of semantic Web and SOA </li></ul></ul><ul><ul><li>Evolution toward 3D </li></ul></ul>
  23. 23. CHAPTER THIRTEEN Opening Case Study Questions <ul><li>Do you agree that eBay founder Pierre Omidyar used disruptive technology to change the auction business? Why or why not? </li></ul><ul><li>Create a Porter’s Five Forces analysis highlighting eBay’s market position. Be sure to highlight any new technologies that have the potential to disruptive eBay’s business </li></ul><ul><li>What types of ethical dilemmas will an online business such as eBay face that a traditional company would not face? </li></ul><ul><li>What types of security issues will an online business such as eBay face that a traditional company would not face? </li></ul>
  24. 24. CHAPTER THIRTEEN CASE Failing to Innovate <ul><li>Obtaining the first-mover advantage is critical to any business that wants to compete in the Internet economy </li></ul><ul><li>However, gaining a first-mover advantage is typically temporary, and without remaining innovative the company can soon fail </li></ul>
  25. 25. Chapter Thirteen Case Questions <ul><li>If these companies all had a first-mover advantage, then why did the products fail? </li></ul><ul><li>For each of the above determine if the technology used was disruptive or sustaining. </li></ul><ul><li>Choose one of the products above and determine what the company could have done to prevent the product from failing. </li></ul><ul><li>Can you name another technology product that failed? Why did it fail? What could the company have done differently for it to succeed? </li></ul>