1 Introduction
In the new economic era, the dynamic and competitiveness of enterprise operating environment have been reinforced constantly. Customer demands, the technology evolution, the competitive interaction and cooperative connection among enterprises, the market regulation and the changes of the circumstances all make the enterprise falling into a maelstrom of uncertainty. These uncertain elements can bring greater opportunity for the enterprises as well as threaten the life and death of the enterprises. What the enterprises should do is to explore new wisdom of strategic logic (Amit & Schoemaker, 1993) . Christensen, professor from Harvard University, from the new perspective of seeking the exact places where the profit of enterprise lies, proposed the disruptive innovation theory which caused extensive attention and heated discussion of scholars and practitioners. In this essay, the concept of disruptive innovations will be further explored by using the model developed by (Christensen, 1997) . The evaluation of the emergence of electric vehicles, a disruptive innovation in Chinese automobile industry will be used. The reasons why considering this innovation as a disruptive one will be outlined. Then, the in the realm of automobile industry, the responses of the companies to this innovation will be assessed so as to ascertain the elements that influenced these responses. And the extent how far does this example fits with Christensen’s model will be evaluated as well so that people can draw lessons and sum up the experience from any possible deviations.
2 Disruptive Innovation
(Christensen, 1997) first proposed the concept of disruptive innovation for describing the innovation that had destructive effect towards the co...
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...tegic innovation without any reservation. This concerns not only mimic innovation, but also expanding and growing it to a mass market.
5 conclusion
This essay narrates the recent studies about disruptive innovation and indicates its characteristics in the first place. Then take China’s electric vehicle market as an example to explain how the disruptive innovation works. Next part the essay introduces China’s automobile industry and the present situation of the development of electric vehicle industry. The following part is the analysis of China’s electric vehicle market from the perspective of Christensen Model and Encroachment Patterns, elaborates the danger caused by disruptive innovation of electric vehicle to traditional fuel vehicle industry. At last, the essay analyses how traditional fuel vehicle industry deals with disruptive innovation of electric vehicle.
Introduction/Objective: Team 1 selected the short case study of CarMax vs. AutoNation vs. ZAG, (De Wit, & Meyer, 2010). Each member of the team reviewed the selected reading to identify the changes in the business model, convergence, compliance and the paradox within the case study. This case study was brief, but very informative and provided an excellent example of the effects that business model change can have on the automotive industry. By challenging industry rules tension was noted, therefore forcing the competition to conform to new standards through compliance or choice of redirection. Breaking industry rules can actually be beneficial in establishing a competitive edge against the competition. According to the authors, De Wit &
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
Innovation and disruption have become buzzwords in the past decade. With the advent of smaller and faster technological components, start-ups and established companies alike have promised to improve (even revolutionize) our lives with wearables, appliances, apps, and the Internet of Things. Unlike maintenance and repair, innovation and disruption are perceived as interesting, exciting, and “sexy.”
Utterback, A. M. (1996). Mastering the dynamics of innovation. United States of American: Harvard Business Press
The product/person must do something innovative in an industry that
Automobiles are a necessity today, just as they were back in the early 1900’s when Mr. Ford built and started his company. Over 100 years ago, the Model A, and Model T were very basic and made of heavy steel to withstand the use and the harsh environments they faced (Ford, 2015). Throughout American history the automotive industry continues to change, and the changes create a ripple effect on the industry in regards to competitors, labor force, suppliers. While there is no real threat of a new auto manufacture, joining America’s Big Three, there is a threat when one of them introduce a new automobile or completely redo an existing one, like Ford’s latest F-150 series. These changes create additional effects felt by others outside of the automobile industry.
The word ‘disruptive’ holds a much larger meaning and is more of a strategy ‘buzz-word’ than a marketing jargon. Applying the same concept, there can be two kinds of disruption. First is, when there is no market for a product and you create your market by the sheer power of advertising. For example, something that “Vanish” did, that is, instead of competing in the existing washing detergent market, it created a new market segment and gained a substantial initial foothold. Another example is how Happydent created a market for a “chewing-gum” that keeps our teeth white.
...ividuals and systems should be developed to encourage innovation in a flexible way with few legal restrictions. Government and investors should work towards improving the infrastructure of the nation by providing facilities and platforms making it simple for any individual to innovate.
Kelley,T. (2005, Oct.). The 10 faces of innovation. Fast Company, 74-77. Retrieved 6th March’ 2014 from http://web.ebscohost.com/ehost/detail?vid=9&sid=1d6a17b7-c5f7-4f00-bea4 db1d84cbef55%40sessionmgr10&hid=28&bdata=JnNpdGU9ZWhvc3QtbGl2ZSZzY29wZT1zaXRl#db=bth&AN=18386009
claiming that “An entity learns if, through its processing of information, the range of its
This definition has extended the power of the theory to explain different types of disruptive innovations across a wide range of industries (Schmidt and Druehl, 2008).
As society grows and evolves, technological advancements and innovations continue to develop and consistently change different aspects of our society. For an organization, understanding how to manage these innovations is essential for their proper utilization and implementation. With technological advancements and innovations constantly emerging, it is important for an organization to stay aware of which new technological innovations can help them be successful. Organizations are always looking to set themselves apart from competition through innovation.
1).Innovation Management:Innovation Management is the form of looking into future, of being creative, imaginative .It is used in the growth of product and also organizational innovation. It also includes tools which allows higher management & engineers to communicate with basic understanding of goals and its processes .Its main focus is to allow the organization to react quickly occurring within an organization, using its efforts to implement new ideas or its products. It also involves persons in contributing to the development of the companies manufacturing and also its marketing. Through development also innovation process can be done. There are two types of process involved in innovation management one is pulled and the other is pushed. Pushed process is the one in which the organization uses its technology to discover profitable applications. Pulled process is the one in which the focus is mainly in developing the efforts to find the solutions. There are two phases in innovation management .First phase includes design of the innovation and second phase includes the implementation. Internal bench marking can be established to measure the innovation. Managers should focus on ones attention on innovation cause to be necessary to infer something from information received on the complexity.
Innovation may be defined as exploiting new ideas leading to the creation of a new product, process or service. It is not just the invention of a new idea that is important, but it is actually
In today’s world the economic activities is more knowledge intensive. Besides of commercialization as well as globalization more emphasize is given to the role of innovation in terms of economic growth. The reasons behind is that sustainable innovation will play a major role determining the future economic growth of a country. The governments of different countries having realized that accelerated the policy efforts which are focused to strengthen the national innovation systems. From my opinion government should play an active role to assist the sustainable innovation. To assist the process of sustainable innovation the government should focus on research and development, a good system of education, activities to encourage entrepreneurs and knowledge flows. According to my point of view all these activities are the determinants for innovative activity.