Breakthrough approach of IM improvement in organization

According to Christensen and Raynor, the breakthrough innovation projects can be defined as “new products that create new markets that usually refer to revolutionary change in firms, markets and industries, which provide substantially higher customer benefits relative to current products in the industry ”. Alternatively, Wikipedia proposes more broad definition: “these projects are the highest risk and the highest reward category. These involve the newest technology greater than that of a platform project. This use of this technology may be disruptive to the rest of the industry and create an entirely new product category to define the industry. This may be a brand new technology or significant changes to existing projects. These types of projects often incorporate new and innovative manufacturing or servicing processes. These types of projects should be given leeway to work outside of normal and existing operating techniques. Fiber optic data transfer cables revolutionized the industry of data transfer. This new technology was a breakthrough in the industry with lines of dark fiber laid though many major cities. Hybrid cars are the first types of cars not to rely solely on the use of fossil fuels ”.

The purpose of such a strategy in context of IM is a breakthrough of standards in existing industry or consumer preferences, implementation of qualitative changes in the system of the enterprise, making the transformation process irreversible. These changes are implemented in a short time due to the concentration of intellectual, financial and administrative resources of company, as well as significant efforts of managers.

The magic of any type of breakout strategy lies not in the strategy itself, but in its details and implementation. It is not possible to specify a universally applicable formula for growth, as every business situation is dependent on a myriad circumstances relating to markets, competitors and organizational capabilities. However, we can learn to read strategic situations and to manage strategic processes. When companies endeavor to get on the fast track to business growth, for instance, it is important to recognize that they do so from very different starting positions. All major growth opportunities ultimately require issue of a superior value proposition, but there is a clear division between a proposition targeted at an emergent market and one targeted at an established market. Companies that pursue a taking by storm strategy within an emergent market context are true originals. It is important to underline that in reality transformative processes are not consistent or linear. They are interwoven and it is difficult to separate them. They have no strict logic, which can be represented as a sequential algorithm of actions. They can develop simultaneously, and the dynamics and nature of their relationship may change in different ways at different stages. For example, the points of future changes may arise before forming clear vision of new IM system. Nevertheless, thanks to a clear vision, it is easier to develop such changes.

At a certain stage, vision is transformed into the concept or design of the new system, which also affects the specification of the adjustment process and the creation of new business items.
The breakthrough projects within IM system begins with the start-up of transformation. The main condition of a real transformation is the presence of self-interest of TOP and senior managers. First, they need to see themselves inside a new system. The reasons for improvement and changes can be different:
• Facing a new opportunity and struggling to know where to start;
• Discouraged that in one particular part of your ministry, nothing you have tried so far has worked as expected;
• Wondering if you are in the wrong place and should look for somewhere else to serve unless you get a breakthrough in a certain aspect of your ministry pretty soon;
• Mystified and resigned to ineffectiveness but determined to keep on working “faithfully” despite little or no apparent impact .

Leaders of enterprise have two possible approaches to start the breakthrough improvement process of IM system:
Many businesses have leaders, but only some leaders are naturally, or are compelled by circumstances to be, concerned with transformation. Transformation requires vision that is not required of or does not come naturally to many more traditional leaders. Thus, we call leaders of transformation “visionary leaders .”
The second approach is based on new idea, vision and goals about the future of a company, which comes with the new head of a company or new executive team members who understand the need of reforms. The main benefit of such approach is that new members are not familiar with existing system of IM, so they do not see any barriers for transformation. Such option occurs frequently, it is more effective but significantly more expensive, and requires considerable efforts.

Both approaches are based on so-called points of improvement, associated with the appearance of new growth places in the existing system. These innovations can be very different, from the implementation of information systems to educational technology. However, the development of them in one way or another affects different systems of the enterprise, leads to changing of tasks and activities under the formation of new vision and the need for change.
After clear vision of future improvement and new system of IM were formed, managers should launch the mechanism of self-organization transformation processes.

Final formation of breakthrough strategy associates with project development of new business processes, their implementation and the creation, based on developing ideas, of new values. In the completed condition, breakthrough system presents the integrity of new elements.

Breakthrough approach of IM improvement in organization изображение 1

Работа добавлена: 11.02.19, изменена: 13.04.19

Наверх