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Negotiation Steps: Introducing New Products
Introduction to new products
Companies have several options:
- Buy more companies
- Buy patents from other companies
- Buy a license or franchise from another company
- Introducing new objects into the world
- Improve existing products
The innovation imperative
Continuous innovation is a necessity
New-product success
Incremental innovation vs. disruptive tech
Exploitation and Exploration
Exploitation: Taking advantage of current or known technologies to do things in a new or novel way - Refinement, Efficiency, Selection, Implementation
Exploration: The process of seeking new technologies or new ways of doing things - Search and variation, Risk-taking, Innovation
Exploration refers to learning and knowledge development intended to increase organizational performance through the exploration of new possibilities. Exploration can be thought of as the invention or discovery of a new technology.
The right balance of exploitation and exploration by having
Some parts of the organization focus on exploitation, i.e., defender, and other parts focus on exploration.
How to generate ideas:
- Employee interaction
- Interacting with strangers
- Studying competitors
- Adoption of creative techniques
- Mindmap
- Attribute listing: Lists the attributes of an object, and then modifies each attribute.
- Forced relationships: list different ideas and consider each one in relation to each of the others.
- Analysis morphological: start with a problem, then think about size, medium, energy source.
ORGANIZATIONAL DEFENSIVE ROUTINES (ODR)
They are defined as any action, criterion or practice that prevents participants in the organization from feeling embarrassed or threatening and, at the same time, prevents them from discovering the causes.
A routine is a repetitive and recognizable pattern of interdependent actions involving multiple actors.
ODRs are an obstacle to organizational learning!
TYPES OF CHANGE
- Planned and unplanned
everyday models so that continuous change can flow more freely
- Unlock: Innovating ways to ensure continuous change
8-STEP MODEL
There are eight steps to transform your organization:
EVOLUTIONARY AND REVOLUTIONARY CHANGE
Revolutionary change can be seen as a disruption of the system, after nothing will be the same.
An organization's fundamental mission is to survive. Most of the time, organizations survive by continually solving problems and trying to improve the way things are done. Sometimes, however, survival depends on a completely new raison d'etre with completely different products or services or both.
- Evolutionary change. Undoubtedly, more than 95% of organisational changes are evolutionary. Resistance to revolutionary change is really strong. Most of the changes involve step-by-step improvement to solve a problem or modify a larger part of the system. Evolution implies continuous change, small continuous adjustments created simultaneously between units, can accumulate and
create substantial changes. In this case, the fundamental nature, or deep structure, remains undisturbed.
➢ Revolutionary change. It occurs in leaps and bounds, shots and interruptions, not incrementally and linearly. In this case, it is the deep structure that is the object of change.
RESISTANCE
We can highlight the concept of Resistance. According to this concept, people do not resist change "for itself." They resist THE OF CHANGE and per the PERCEIVED LOSS ASSOCIATED WITH CHANGE. Which type of "loss" isen?
It is the loss of the known and the anxiety associated with the unknown and with the loss of freedom of choice.
Therefore, people must stop identifying with the old and achieve closure before they can embrace the new: they should surrender role, positions, titles, and they should deal with ambiguity, confusion, despair and reorient. They should learn new skills and new competencies and they should develop a new vision for the future.
Tactics for dealing with
resistanceEducation/communicationParticipationFacilitation and supportNegotiationKubler-Ross change curvesIndividuals experience these stages during change phases... notes these are also the stages individuals experience when trying to cope with traumatic eventsGROUP DECISION MAKINGCOESION FACTORSConflitto:IMPROVE DECISION-MAKING IN GROUPS:- Initial criteria: What defines the success of a decision?
- Full search for information (biases, group think avoidance)
- Engage in a critical and reflective assessment of the options
- Review pros/cons of alternatives
- Implementation plans
- Retailers use technology for business operations, to enhance the consumer shopping experience inside the store, and Internet/social media strategies
- but also to produce forecasts, control inventory costs, and order from suppliers, reducing the need to discount
run sales to clear out languishing products
Technology has two effects
- Substitution effect: (mostly) of labor by technology
- Scale effect: (such as) provides time for new activities, boosts productivity, reduces costs
Example, New10
Some McDonald's restaurants have introduced self-serve kiosks as part abroad ranging strategy to create a "restaurant of the future," said Jason Trussel, who owns five McDonalds restaurants. He told CBC the machines are not going to replace human workers. In the past 18 months, his staffing levels have increased by 66 employees. Trussel introduced the kiosks about a year Aug.
The machines simply give people more options, which brings in more customers and requires more staff.
The machines shifted some labor from front-end cashier work to the back-end kitchen, or even created the demand for table service.
THE RELATION BETWEEN TECHNOLOGY AND SKILLS
Human progress is a story of specialization
Technology reduces the cost (and time) for basic needs
products and Enables people to spend time and money on more sophisticated products
The substitution depends on skill/technology complementarity
HIGH-RELIABILITY ORGANIZATIONS (HRO)
The High Reliability Organization (HRO) is an organization that aims to avoid disasters in environments where you can expect, due to risk factors and complexity, accidents whose consequences can be fatal, in terms of human lives, and capable of causing natural disasters.
- Attention to failures: HROs cannot learn from their failures because, when these occur, they have irreversible effects (loss of life, environmental disasters, etc.). They focus on failures before a malicious event occurs, encouraging a culture of reporting and critical discussion around errors and incidents, so that it is possible to learn from situations of marginal errors and prevent them before they become larger;
- Attention to doubt and operational scepticism: HROs are oriented to maintain a constant openness to skepticism about the