Twenty Management Practices That Work Against Innovation And Growth

In this section consideration will be given to the following areas:

    i) under differentiated, commoditised, "one-size-fits-all" solutions

    ii) usage of biological evolution to explain unpredictability and randomness

    iii) "best-by-consensus"

    iv) defining markets by attribute-based or customer-based demographics or organisational boundaries

    v) powerful investor pressure to increase or maintain returns on current assets

    vi) traditional approach of going with new technology to existing, large and known markets

    vii) under-estimating the importance of customers at the lower end of the market point of entry for disruptive innovations

    viii) the alternative is to look at new market customers (non-customers)

    ix) innovator's dilemma

    x) not understanding product architecture and interfaces including interdependence and modularity

    xi) need to understand the 3 conditions for competing in a modular world, ie non-integrated specialist

    xii) keeping development of disruptive innovations in an established organisation and using the current supply chain that is organised traditional product/service categories

    xiii) focus of fear

    xiv) management's demand for quantification of opportunities

    xv) advertising (including brands) or product category by market segmentation

    xvi) that differentiation and/or low costs are growth strategies

    xvii) using categories of core competency to decide whether to in source or outsource

    xviii) not realising that

    xix) factors that influence incorrect allocation of money

    xx) how to manage this dilemma of investing for growth