MGT 300 Lecture Notes - Lecture 10: Disruptive Innovation, Reward System, Offshoring

• School: University of Alabama
• Department: Management
• Course: MGT 300
• Professor: Daniel Bachrach

Document Summary

Fundamental change: what will you be called upon to deal with: the marketplace is becoming more segmented & moving toward more niche products. Amazon can sell a large number of niche products: there are more competitors offering targeted products, requiring faster speed-to-market, some traditional companies may not survive radically innovative change. Disruptive innovation; nokia in the cell phone market: china, india, & other offshore suppliers are changing the way we work. Offshoring manufacturing, but also knowledge work: knowledge, not information, is becoming the new competitive advantage. Valuing analytic, problem solving, and abstract reasoning skills. A process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. Making changes in response to problems or opportunities as they arise: proactive change. Involves making carefully though-out changes in anticipation of possible or expected problems or opportunities (strategic planning)