Answer 2 for LDR 615 What is “disruptive change,” and how is this different from “incremental change?”  Colleagues,

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Answer 2 for LDR 615 What is “disruptive change,” and how is this different from “incremental change?” 

Colleagues,

Disruptive change refers to a significant, radical shift that fundamentally alters the way an organization operates, often driven by technological innovation or changes in market dynamics. This type of change challenges existing business models, processes, and strategies, and can lead to the creation of entirely new markets or the transformation of existing ones. Disruptive change is typically unpredictable and requires organizations to adapt quickly to remain competitive.

In contrast, incremental change involves small, gradual improvements or modifications to existing processes, products, or services. Incremental change is typically predictable and involves fine-tuning and optimizing current operations to enhance efficiency, quality, or performance without fundamentally altering the organization’s core structure or strategy.

The impact of disruptive change on an organization can be profound. It can render existing products, services, or business models obsolete, necessitating rapid adaptation and innovation. Organizations facing disruptive change must be agile and willing to embrace new technologies, practices, and mindsets. This often requires a shift in organizational culture, significant investment in new capabilities, and sometimes even restructuring or redefining the company’s mission and goals.

One notable example of disruptive change is the rise of digital photography, which dramatically affected the traditional film photography industry. Eastman Kodak, a leading film and camera manufacturer, struggled to adapt to the digital revolution. Despite pioneering some early digital photography technologies, Kodak failed to fully embrace the shift, focusing instead on protecting its film business. This oversight led to a significant decline in market share, and eventually, Kodak filed for bankruptcy in 2012 (Lucas & Goh, 2009).

In contrast, Fujifilm, another major player in the film industry, successfully navigated the disruptive change by diversifying its business and investing in new technologies. Fujifilm expanded into medical imaging, pharmaceuticals, and other sectors, leveraging its expertise in imaging technology to adapt and thrive in the face of disruption (Tripsas & Gavetti, 2000).

Disruptive change, therefore, requires organizations to be proactive, flexible, and willing to take risks. It often necessitates a transformation in leadership and strategy to harness the opportunities presented by disruptive innovations and to mitigate the risks associated with being unprepared for such radical shifts.

References:

  • Lucas, H. C., & Goh, J. M. (2009). Disruptive technology: How Kodak missed the digital photography revolution. Journal of Strategic Information Systems, 18(1), 46-55.
  • Tripsas, M., & Gavetti, G. (2000). Capabilities, cognition, and inertia: Evidence from digital imaging. Strategic Management Journal, 21(10-11), 1147-1161.

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