ÖRGÜT KURAMI VE TASARIMI

Process innovation is a company’s effort to refine and improve its current processes. In the early stages of industry development, product innovation is vital. However, over time product innovation becomes less critical, and process innovations designed to reduce manufacturing costs and increase product quality become more critical.

Radical innovation is based on existent business model and exploring novel technology, and development of new and different products such as biotechnology for pharmaceutical companies, jet engines for airplane manufacturers, and fiber-optic cable for telecommunication companies.

Routine (incremental) innovation refers to having the existent business model, exploiting the existing technical knowledge base and small improvements of existent products.

Architectural innovation integrates new business models with new products that are based on new technical knowledge.

Disruptive innovation requires a new business model but not necessarily a technological breakthrough. For that reason, it also challenges or disrupts, the business models of other companies.

Invention refers to the emergence of an idea. The key mechanism of invention is exploration, which includes things represented by words such as search, variation, risk-taking, experimentation, play, flexibility, and discovery10. Invention includes generating an insight about the customers’ problem or need and profoundly understanding this problem or need.

Conservation is a concept that does not refer to invention.

Questioning, observing, networking and experimenting are the four behaviours innovators have.

First, innovators bring forth insights through questioning, constantly challenging the status quo with “why” and “why not” questions to turn things upside-down. They often ask “what if” questions to envision a different future. Questioning gives you the fuel to power new associations and insights. Second, innovators gather new ideas by observing the environment as if they were anthropologists. They get out of their offices to watch the world around them—especially customers, products, services, and processes—to activate unique ways of doing things. Third, innovators surpass at networking, talking with people to find—or actuate a new way to solve—perplexing problems. They regularly communicate with people who do not look, act, or (most importantly) think as they do. Instead of networking simply to gain resources, they interact with diverse people to get new ideas. Finally, innovators generate insights by invariably experimenting. They test new experiences wherever they go. They disassemble products or processes to see how things work—and how to improve them.

Strategic change refers to alterations in a company’s corporate, business-level, and/or functional strategies. Mergers and acquisitions, outsourcing, and entering strategic alliances (franchising, equity alliance, joint venture, etc.) are the most common corporate change attempts. Product and/or process innovation, engaging to achieve economies of scale or scope, and offering new complementary products are some attempts at changing the business-level strategies. Investing in new equipment, changing price policy, and designing new education and training programs are some examples of changes in functional strategies.

The example given in the question is about franchising.

Planned change models view development as a repetitive sequence of goal formulation, implementation, evaluation, and modification of a pictured end state based on what was learned or intended by the people involved48. Planned change is rapid and dramatic. It tends to result in a radical shift in ways of doing things, new goals, and a new structure49. Restructuring (downsizing an organization by eliminating the jobs of large numbers of managers and employees), and reengineering (deleting old processes and all unnecessary process details, and redesigning processes from scratch, leading to radical transformation) are two examples for the planned structural change.

The reasons why people resist organizational change are as follows:

1. It is considered an unwelcome disturbance and interference to their established routine.

2. People may perceive as negatively affecting their job security, payment and status differentials, working conditions, and value of their acquired skills.

3. Managers often resist changes proposed by specialists such as systems and HRM experts because they perceive a risk to the smooth running of their operations in accepting the potential disruption caused by something new. 

4. Specialists for their part are often uncomfortable with the emphasis that new forms of organizing place on their integration with other specialists in teams or other units that cut across traditional disciplinary or functional boundaries. They may, therefore, resist developments of this kind.

Coercion can be used to deal with resistance to change. Coercion involves the use of direct threats or force against the resisters. Notwithstanding, it may be illegal and may undermine change agent’s credibility.

In general, bottom-up change is easier to implement than top-down change because it provokes less resistance. Organizations that have the time to engage in bottom-up change are generally well-run organizations that pay attention to change, are used to change, and change often. Poorly run organizations, those that rarely change or postpone change until it is too late, are forced to engage in top-down restructuring merely to survive.

The final step in the change process is to evaluate how successful the change effort has been. Using measures such as changes in market share, in profits, or the ability of scientists to innovate new drugs, managers compare how well an organization is performing after the change with how well it was performing before. Managers also can use benchmarking which refers to comparing their performance on specific dimensions with the performance of high-performing organizations to decide how successful a change effort has been.

Process innovation is a company’s effort to refine and improve its current processes. In the early stages of industry development, product innovation is vital. However, over time product innovation becomes less critical, and process innovations designed to reduce manufacturing costs and increase product quality become more critical. Advances such as containerization, just-in-time production, mass customization, lean manufacturing, and Six Sigma make possible process innovations. The implementation of a new organizational method in the company context is called Organizational innovation. The correct answer is Choice C.

Radical innovation is based on existent business model and exploring novel technology, and development of new and different products such as biotechnology for pharmaceutical companies, jet engines for airplane manufacturers, and fiber-optic cable for telecommunication companies. Disruptive innovation requires a new business model but not necessarily a technological breakthrough. Architectural innovation combines technological and business model disruptions. Process innovation refers to a company’s effort to refine and improve its current processes. Routine (incremental) innovation is based on having the existing business model, exploiting the existing knowledge base and small improvements of existing products. The correct answer is Choice A.

Architectural innovation combines technological and business model disruptions. An example is digital photography. For companies such as Kodak and Polaroid, entering the digital world meant mastering entirely new competencies in solid-state electronics, camera design, software, and display technology. It also meant finding a way to earn profits from cameras rather than from “disposables” (film, paper, processing chemicals, and services). Taking the example given above into account, Nokia needed to change the product itself, so the innovation needed to be one of the product innovation. Here both technological and business models needed to be changed. The correct answer is Choice D.

Organizational innovation is the implementation of a new organizational method in the company context. There are three types of organizational innovation: organizational innovation in business practice, innovation in workplace organization, and innovation in organization methods for external relationships. Organization innovation in business practice contains the implementation of new methods for organizing routines and procedures, such as engaging in customer relationship management, training, and education systems for employees, or introducing total quality management. Innovation in workplace organization includes the implementation of new methods for distributing responsibilities and decision-making among employees for the division of work, as well as new concepts for the structuring of activities. Finally, innovation in organization methods for external relationships involves the implementation of new ways of organizing relationships with other firms or public institutions, such as collaboration with public organizations, methods for integration with suppliers, or outsourcing. The correct answer is Choice C.

In 1983, the Minnesota Innovation Research Program (MIRP) initiated a longitudinal study of service, product, technology, and program innovation. MIRP researchers conceptualized innovations as more than the emergence of new ideas. Rather, the ideas must be developed, and activities such as supplying, manufacturing, marketing, and servicing must be established. Even such efforts are completed, the innovation may not be readily adopted, leading to an additional aspect of the process—its implementation. MIRP researchers also found that innovation is a complex process which is inherently uncertain and far from equilibrium. The correct answer is Choice D.

Invention refers to the emergence of an idea. The key mechanism of invention is exploration, which includes things represented by words such as search, variation, risk-taking, experimentation, play, flexibility, and discovery. Invention includes generating an insight about the customers’ problem or need and profoundly understanding this problem or need. The insight could be finding a problem that others have missed or perhaps uncovering a potential new solution to a well-understood problem. Four behaviors trigger generating insights: questioning, observing, networking, and experimenting. The correct answer is Choice E.

As innovators are engaged in the four behaviors, it is crucial to search broadly. One source of insight is abstract concepts or findings derived from basic research (science). Basic research is conducted to discover new knowledge and is often published in academic journals. The main aim of basic science is enhancing the fundamental understanding of nature, without any commercial application or benefit in mind. In the end, however, basic research is often transformed into applied research with commercial applications. Secondly, individuals are likely to be creative in their work, especially in organizations that further a culture of “play”. Finally, insight can also emerge through autonomous actions, which are strategic initiatives undertaken by lower-level employees on their own will and often in response to unexpected situations. To be successful, top-level managers need to support autonomous actions that they believe fit with the organization’s vision and mission. The insight could be finding a problem that others have missed or perhaps uncovering a potential new solution to a well-understood problem. Four behaviors trigger generating insights: questioning, observing, networking, and experimenting. First, innovators bring forth insights through questioning, constantly challenging the status quo with “why” and “why not” questions to turn things upside-down. They often ask “what if” questions to envision a different future. Questioning gives you the fuel to power new associations and insights. Second, innovators gather new ideas by observing the environment as if they were anthropologists. Third, innovators surpass at networking, talking with people to find—or actuate a new way to solve—perplexing problems. Finally, innovators generate insights by invariably experimenting. They test new experiences wherever they go. They disassemble products or processes to see how things work—and how to improve them. The correct answer is Choice C.

Focusing on a monetizable job, being aware of types of customers and their expectations, and looking for satisfying needs that have a high degree of customer emotion and engagement are the key elements in discovery of jobs-to-be-done. The correct answer is Choice B.

According to MIRP researchers, innovation process has three main periods: invention, development, and implementation. Invention refers to the emergence of an idea. The key mechanism of invention is exploration, which includes things represented by words such as search, variation, risk-taking, experimentation, play, flexibility, and discovery. Invention includes generating an insight about the customers’ problem or need and profoundly understanding this problem or need. The insight could be finding a problem that others have missed or perhaps uncovering a potential new solution to a well-understood problem. Four behaviors trigger generating insights: questioning, observing, networking, and experimenting. The elaboration of the idea takes place at the development stage. After identifying a customer problem worth solving, innovators search broadly for a variety of solutions and then use a series of prototypes. A prototype is a full-scale working model that is being tested for design, function, and reliability. Implementation means the widespread acceptance of the innovation. The central mechanism of implementation is exploitation, which contains such things as refinement, choice, production, efficiency, selection, and execution. The correct answer is Choice D.

Organizational change is usually oriented to improving effectiveness and efficiency at one or more of four different targets: strategy, technology, structure, and people and/or the culture. Strategy refers to “the determination of the basic long-term goals of an enterprise, the adoption of courses of action and the allocation of resources necessary for carrying out these goals for achieving sustainable competitive advantage. Structural change means any change in the patterned or regularized aspects of the relationships among participants in the organization. Technological change means changing the hardware (equipment, machines, and instruments) used in performing work and skills and knowledge of employees. People/ Cultural change includes changes in beliefs and values (ideals, goals, values, aspirations, ideologies, and rationalizations), and/or basic underlying assumptions (unconscious, taken - for - granted beliefs and values). The correct answer is Choice D.