Maturity in the Business Sens: In this article by instead, it states that mature
ID: 395677 • Letter: M
Question
Maturity in the Business Sens: In this article by instead, it states that mature businesses that are failing in some aspect, should strongly considering innovation. It asserts that large established organizations need to consider ways to integrate new "disruptive" innovation with their core assets. It further states that "one of the biggest quandaries facing mature businesses today; how, or how far, can they adopt disruptive practices without harming their organization". What might be a good starting point in assessing a business's sustainability, while contemplating innovation?
https://knowledge.instead.edu/strategy/disruptive-innovation-in-mature-industries-4367
Explanation / Answer
A Distuptive Innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network displacing established market-leading firms, products and alliances.
Why is it needed or thought about :- The large established firms and business find inablity to compete with startups on focus and speed, so organisations are considering ways to integrate new disruptive innovation with their core assets. Innovation is not just about creating new markets but it
Companies cannot escape the impact of digital disruption today, as it reshapes business relationships, overhauls logistics processes and revolutionises markets across every sector.
There are few important quandaries facing mature buisnesses.
Disruption without risk:- How do you strike a balance between standardisation necessary for scale, and innovation which requires disruption. The firms need to find a answer to this important aspect of business.
Innovation is not renovation:- The fundaments needs to be questioned time and again to establish the best and most econimocal business process. There might be a need for a change in SOP's with changing times.
Acquiring innovative practices:- Joint ventures, acquisitions and the creation of a venture capital fund are few of the ways to acquire innovation if the firms are not in a position to innovate on their own.
Staying relevant:- All businesses need to have the ablility to change and innovate its product line.This is the need of the business and the company not able to innovate, will have to face closure.
Be prepared to change everything:- In todays changing world, the key to sucess, for all businesses is to be open for change. This change either can be from within the company or must be acquired from outside.
Business Sustainability and innovation, would at times go hand-in-hand or would compliment each other depending on the industry conditions and the competition in the market place. There can be no fixed formula for a "good start point" to assess innovation in business. Innovation, in todays world has become part of businesses and we need to look forward for alternative on a regular basis.