MANAGING in the

NEW WORLD

Innovation

It is often considered that firms that do not accept the overriding technology of the day in the particular industry are set to fail. However, this is not true given the history with so many industries such as automobiles in the past and solar energy today. Automobiles chose the petrol-driven engine after much deliberation. Similarly, in solar-driven renewable energy, initially everyone went for csi (crystalline silicon) as their preferred mode of technology. Companies that did not opt for this technology were considered the losers, whereas in truth many survived by improvising. An example of this is First Solar that repositioned itself on a different part of the ecosystem. Chinese firms consciously took up design choices which negated the use of any specific technology. A lot of firms have gone for the integrated systems with hybrid technology. Adaptation is another form of business innovation as proven by companies using thin film CIGS technology. The over abundance of solar panels led to a glut in the market, so some delivered services which would bundle components.

Source:https://knowledge.insead.edu/strategy/what-happens-to-firms-that-dont-adopt-dominant-technologies-9971

Uploaded Date:13 September 2018

Marc Andreessen is one of the top venture capitalists, having especially invested in a lot of tech startups. Contrary to the usual narrative of technology eliminating human jobs, he says they will merely augment them. He says that one way to become a top thinker or debater is to mentally spar with some such top names in the world of business such as Larry Page, Peter Thiel and Elon Musk. He states a stat to make his point on jobs changing and not getting lost. The cites that each year about 21 million jobs are lost in the US but 3 million more are created. So, assuming self-driving cars put out a maximum of 5 million people out of work, finding new work is not impossible for those displaced considering that those many are any way generated per quarter. In order to embrace business innovations, one needs to be ruthlessly open-minded. A lot of futuristic products he believes do not succeed straight way, but need the right ecosystem to thrive. Apple’s Newton for example wasn’t an outright success until the development of the iPad.

Source:https://www.gsb.stanford.edu/insights/marc-andreessen-take-ego-out-ideas?utm_source=TWITTER&utm_medium=Social&utm_campaign=Insights&Date=20180903&linkId=56374280

Uploaded Date:11 September 2018

While it is true that an increased pool of diverse personnel is good for any company’s ability to generate business innovations, this diversity must also include different dimensions. The best-known form of diversity is in demographics with personnel from different gender, age groups and ethnic or cultural backgrounds. There must be scope for both pragmatists and visionaries. The teams developed must be cross-functional and multi-disciplinary as that is good for talent management. Not only must there be people with different areas of education, but also knowledge levels. The experience timeline must be vast. There must be both the generalists as well as specialists. Some must possess a passion for extra-curricular interests. There needs to be scope for the risk takers as well. The cognitive preferences too must vary. One area where there should be less diversity though is the trust factor as that cannot be compromised.

Source:http://innovationexcellence.com/blog/2018/08/28/9-diversity-dimensions-that-increase-innovation-and-one-reason-they-may-not/

Uploaded Date:11 September 2018

The platform-based business has for a while now been hailed as the ultimate symbol of disruption caused during the ongoing digital age. The likes of Uber and Airbnb in particular symbolize this. Several books have also been written on their far-reaching impacts, with most notable of them being The Network Imperative, Matchmakers and The Platform Revolution. However, this business model is not a sure shot formula to business success, with several flaws embedded in it. The first such barrier that all entrepreneurs need to beware of is that there are very few barriers to entry. Another is that over a period of time, the intense competition prevalent in such fields leads to an escalation of costs. Business innovations work only when there is adequate scale. This leads to the third major flaw that is that the few who do succeed in the platform business end up taking disproportionate amounts of the benefits, leaving most to rot.

Source:http://innovationexcellence.com/blog/2018/08/27/3-reasons-why-you-shouldnt-bet-your-business-on-a-platform/

Uploaded Date:11 September 2018 

It is now oft-repeated that the job a child’s parents are doing while he/she first takes admission in kindergarten, might not exist anymore when the child grows up to be seeking a job. The world population has grown exponentially over the last century, as has overall GDP, with working hours falling in Western Europe. For all this to happen, technologies have played a massive role and will further shape the workforce over the next decade. Forces such as additive manufacturing, autonomous vehicles, biotechnology and robotics will be foremost among them. Some job profiles are likely to go irrelevant such as – cashier, legal assistant, loan officer or telemarketer. All these involve routine functions. Jobs to thrive will be those that bring solutions or creativity- scientists, artists- where personal relations play a part- nurses- or where new technology areas such as big data will be used.

Source:http://innovationexcellence.com/blog/2018/08/20/how-innovation-impacts-work-technology-as-game-changer-and-life-changer/

Uploaded Date:01 September 2018

Business commentators often highlight the case of companies failing to adapt to newer technologies to give them an edge. On closer scrutiny though, it emerges that business innovations are often unable to come to the surface due to a certain key stakeholder- investors. Many of them are so attuned to a certain technology, that they go out of their way against introduction of a new one. Investors also want near-term gain, which is what prevents them in spending on something that may have ripple effects later on, but not much immediate value. Investors though are more lenient in cases with startups, as there the valuation is more to do with future potential rather than current profits. Innovating in the face of conservative investors is a challenge, but digital leaders of tomorrow need to take up such risks. Thus, carefully calibrated communication with investors is a must, especially for older, more established firms where the valuation is present profit based.

Source:https://hbr.org/2018/08/when-companies-want-to-innovate-but-investors-wont-let-them?utm_medium=email&utm_source=newsletter_daily&utm_campaign=dailyalert_activesubs&utm_content=signinnudge&referral=00563&deliveryName=DM12562

Uploaded Date:27 August 2018

A new book has been written by Shane Snow titled Dream Teams: Working Together without Failing. Here, he talks about how diverse teams function best when there is some form of conflict. A dream team is one which battles all the odds and works towards the common desired goals. The end result is higher than the sum of its parts. Business innovations are best sparked off when there is some form of friction among the team players. An army of all thinking same does not necessitate success. In fact, humans feel comfort when they know that the person standing next is quite dissimilar. This is why individual statistics do not tell the full story in team sports. Even the famous Wright brothers had their moments of conflict which gave way to innovative team design. Intellectual humility is one thing that most professionals must now strive to incorporate.

Source:http://knowledge.wharton.upenn.edu/article/fight-to-win-how-a-little-friction-sparks-innovation/

Uploaded Date:16 August 2018

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