Type: Process Essays
Sample donated: Pat Lloyd
Last updated: September 30, 2019
Today we live in rapid changing world, new technologies are being developed each and every single day, many companies faces the fact that if lack of change occur they would be disrupted. Firms with future outlook realized that they have to invest in innovations to sustain business and stay competitive in nowadays market. on the other hand some companies do whatever it takes for transforming their core business trying to avoid disruption by new technologies. organizations that dismiss these new risk taking technologies are going to be eliminated from market much faster than before. Moreover, companies are dying to ensure their permanence, but they must put in mind that they do not need to act like new start-up while all what it takes from them is to act like a disruptive. When company decide to make change it is going to tackle the ‘innovator’s dilemma’, argues Harvard professor Clay Christensen.
they would face this dilemma when the successful innovations that takes the company to primary success are not enough to secure longevity in a market any more. because, smaller companies are pioneering with cheaper product innovations or unprecedented model which gains market share through gaining salability at the bottom of the market. Foresight is not sufficient to solve this dilemma, converting a firm’s core business need leadership with a powerful leader that can protect the changing project, for instance, Netflix media provider decided to go online, when their original core business was DVD which enabled them to disrupt videos industry; now; its stock is the highest in the companies history. It is obvious to say, corporations which count on machines and hardware have so much difficulties to shift revolutionary in contrast to industrial ones, because they do not need to change the whole company to stay disruptive. Furthermore, open innovations are increasingly utilizing through companies, it is been shown that they increase quality and number of outputs created. Lastly, whenever the changes among companies are not being made, surely they will turn into history. For instance, Nokia and its huge failure.
not a secret that apple and android crushed Nokia out, but there are other reasons that have been affected the company. It had been on many different business such as; paper, rubber galoshes, and electricity, as well as having a number of variety business under the name of Nokia. During early nineteen nineties, administration decided to get rid of everything except telecom due to the rise of cell phones business. Moreover, Nokia is an engineering firm, it spent large amounts of fortune on research and development, but they were not able to make due to the fact that its actually a hardware company. Its engineers were masters at making physical device, but they were unable to build the softwares that make those devices usable, so that they underrate the significance of using smart phones.
The development process was controlled by hardware engineers who marginalized the experts of softwares which led them at the end to quit their jobs and join Nokia competitor’s firms. Nokia negligent the increasingly importance of softwares and the importance of turning into smartphones world. On the other hand they overestimated the intensity of their brand, and they were imagining that even if they arrive to smartphones game late it would be easy to catch up quickly which is completely wrong, because in this era companies who fell behind their customers would be first to punish them.