SUMMARY OF INNOVATION AND MANAGEMENT PAPER

Companies must have disruptive innovations in order to grow drastically in the future. Present businesses might not last for long because of their life cycles, changing market needs and competitors’ breakthrough products. The disruptive and sustaining innovations are two different things, which require the different processes. To create a new disruptive growth product, ignore the present sustaining products, instead, find a new future growth opportunity, which is expected to generate huge potential profits. The opportunity is seemingly small and unattractive at present, but must be growing to a huge market in the future. Disruptive innovators should not normally pursue the synergies with existing products and processes. They must search for a whole new product development process in order to disrupt competing products. In implementing the disruptive strategy, executives and senior managers must manage resource allocation processes, which are made at all levels of the organization based on its corporate values. Managing the strategy process depending on the circumstance can greatly raise the possibility of success. They also need to manage the funding for the disruptive growth project, which must be profitable, though it might not grow rapidly, because the initial strategy may not be right and so as not to eat up the profits from the existing business. The disruptor should ignore the immediate growth, check the profitability and look patiently for the future potential. Senior executives must play the role of actively controlling these processes and coordinating the strategy balance between the existing and disruptive businesses. They must not make haste in developing new growth products because the disruptive innovation takes time to bear fruits. But once it succeeded, it would disrupt competitor products, gradually take over the market leadership and generate drastic profits. It is a revolution in the business.