Question

Companies use organizational innovation, creating new ideas, solutions, and behaviors to match a constantly changing environment. Disruptive innovation is a change that completely replaces a product or service for customers. For example, the advent of streaming music signaled the end of music on CDs and cassette tapes. When disruptive innovation takes place, it can put a company out of business. Some companies engage in self-disruption in order to avoid that.

Disruptive innovation can occur as a result of reverse innovation, when a company innovates in an emerging market and brings that innovation to an affluent market. Harman International used reverse innovation to create an infotainment system for motorbikes that is unlike anything the company has ever sold before.

In order to make innovations effective, organizations have to take an ambidextrous approach — they have to be able to both come up with new ideas (exploration) and turn those ideas into salable products (exploitation). Companies have to give employees freedom to discover new ideas, but they also have to have a centralized and standardized approach for implementing those ideas.

Disruptive innovation: Check all that apply.

Causes companies to grow

Causes companies to shrink

Creates small changes to products and services

Can put companies out of business

2. Suppose that a company known for producing very high— quality and high-priced vacuum cleaners went to India and recognized a need for inexpensive stick vacuums that could easily be used on wood or even dirt floors. The company worked with an Indian firm and developed these new vacuums, which sold well in India, and are now starting to sell well in the United States. What is the company engaged in?

1-Disruptive innovation

2-Skunkworks

3-Internal contests

4-Reverse innovation

Answer 1

The company is engaged in reverse innovation.

Step-by-step explanation:

The company is engaged in reverse innovation.

Answer 2

Disruptive innovation can lead to company growth or decline, and can even result in businesses shutting down; it does not create small changes. The vacuum cleaner company that innovated in India and then brought those products to the U.S. is engaged in reverse innovation, which may lead to disruptive innovation. A dual capability in organizations, allowing both exploration of new ideas and their structured implementation, is critical for enduring success.

Step-by-step explanation:

Disruptive innovation could have several outcomes for companies; it can lead to growth, cause businesses to shrink, or even put companies completely out of business. It does not, however, create small changes to products and services; by definition, disruptive innovation creates major shifts in how industries operate. For example, streaming services have largely replaced physical media in music and movies.

When a company known for high-quality, high-priced vacuum cleaners goes to an emerging economy like India, identifies a gap in the market for inexpensive stick vacuums, and then successfully sells these new products back in the United States, it is engaged in reverse innovation. This process can lead to disruptive innovation as it may introduce new products that didn't exist before in affluent markets, potentially displacing existing products and changing industry norms.

Corporations must often be ambidextrous, balancing the freedom for employees to explore and discover new ideas, ('exploration') and the structured, centralized implementation of these ideas into marketable solutions ('exploitation'). This dual capability is essential for ongoing innovation and remaining competitive in rapidly evolving markets.