One of the dilemmas of management is that processes by their very nature are

One of the dilemmas of management is that processes

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One of the dilemmas of management is that processes, by their very nature, are set up so that employees perform tasks in a consistent way, time after time. They are meant not to change. When people use a process to do the task it was designed for, it is likely to perform efficiently. But when the same process is used to tackle a very different task, it is likely to perform sluggishly. An organization’s values are the standards by which employees set priorities that enable them to judge whether an order is attractive or unattractive, whether a customer is more important or less important, whether an idea for a new product is attractive or marginal. The larger and more aged a company becomes, the more entrenched its corporate value. 2) Managerial resistance to change Most strategic proposals take shape at the lower levels of organizations in engineering groups or project teams. Companies then use analytical planning and budgeting systems to select from among the candidates competing for funds. Proposals to create new businesses in emerging markets are particularly challenging to assess because they depend on notoriously unreliable estimates of market size. Because managers are evaluated on their ability to place the right bets, it is not surprising that in well-managed companies, mid-and top-level managers back projects in which the market seems assured. Managers focus resources on fulfilling the requirements of those reliable customers that can be served profitably. Risk is reduced-and careers are safeguarded- by giving known customers what they want.
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© Copyright National University of Singapore. All Rights Reserved. Why established companies often fail to capture disruptive innovation? Value networks: “ The context within which a firm identifies and responds to customers’ needs, solves problems, procures input, react to competitors, and strives for profit.” Products based on disruptive technologies usually have lower performance initially. So established firms' leading customers don't want or cannot use products based on disruptive technologies, because these do not address their needs as effectively as a company’s current approach. It is unwise for managers to divert resources from known customer needs in established markets to markets and customers that seem insignificant. In well-managed companies, the processes used to identify customers’ needs, forecast technological trends, assess profitability, allocate resources across competing proposals for investment, and take new products to market are focused on current customers and markets. These processes are designed to weed out proposed products and technologies that do not address customers’ needs.
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© Copyright National University of Singapore. All Rights Reserved. THANK YOU
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  • Fall '18
  • Copyright National University of Singapore

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