Market research and analysis has provided us with data on how customer demand patterns change when innovations break into an established business model and how these especially affect already established industries.
Experience and study indicate that, initially, customers will reject any innovative proposal, unless it meets the needs or desires of the consumer effectively. Then the market will gradually accept the proposal, as quality standards improve, while established models are in danger.
For this reason the theory encourages managers to confront innovation with more innovation; incorporating into its operations processes that adapt to the market. And once disruption has dominated the industry, the company will have transformed to meet new trends.
However, in many cases, companies find it difficult to transfer new technologies and processes to their standards, either because this involves reengineering in the way they manufacture and distribute their products or even a radical change in the business model.
The long-term survival of a company today depends on 3 factors (according to research by Rebecca Henderson). Which are:
- An integrated organizational model. Owning an important feature for the end customer. Strong sense of corporate identity.
Architectural disruption of a product or process carries organizational integration costs and requires managers to develop cross-functional teams.
Some companies opt for the strategy of acquiring the disruptor.
Ultimately, both companies and living beings share the need to adapt to circumstances to survive, and just as in nature, companies must decide whether to fight, cooperate or adapt with macro and microenvironments.
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Thank you.
