Strategy

Balle-Sustained-Innovatioin-1200

Why Learning Is Central to Sustained Innovation

Many managers think they can create better products just by improving the development process or adding new tools. But it’s skilled people, not processes, that create great products. So-called “lean” organizations invest heavily and continuously in the skills of product developers, and rather than developing single products, they think in terms of streams of products. By making people the backbone of the product development system, companies can achieve a triple win: increased innovation, faster time to market, and lower costs.

Sampere-Debating-1200

Debating Disruptive Innovation

Few MIT Sloan Management Review articles garner as much attention as Andrew A. King and Baljir Baatartogtokh’s “How Useful Is the Theory of Disruptive Innovation?” After surveying 79 industry experts, King and Baatartogtokh concluded that many of the cases cited as examples of disruptive innovation by Harvard Business School professor Clayton M. Christensen and his coauthor Michael E. Raynor did not fit four of the theory’s key elements well. Here, three experts provide responses to continue the conversation.

“How Useful Is the Theory of Disruptive Innovation?” was the question raised by an article in the fall 2015 issue of MIT Sloan Management Review. In this issue, several more experts weigh in on the topic.

Hype-cubes-1200

Beyond the Hype: The Hard Work Behind Analytics Success

The 2016 Data & Analytics Report by MIT Sloan Management Review and SAS finds that analytics is now a mainstream idea, but not a mainstream practice. Few companies have a strategic plan for analytics or are executing a strategy for what they hope to achieve with analytics. Organizations achieving the greatest benefits from analytics ensure the right data is being captured, and blend information and experience in making decisions.

Hanson-1200

Leading by the Numbers

It can be difficult for finance professionals to transition to broader leadership roles. Leadership development, it turns out, is different for people from finance backgrounds. But five changes in how they approach their job can help them succeed when taking on broader roles in an organization. Those changes include transitioning from being the expert to being someone who leverages expertise, and being able to unleash their thinking to see that a problem can have multiple plausible solutions.

TechSavvyBlog-1200

Tech Savvy: February 26, 2016

Peter Drucker defined the work of business leaders by three principal tasks: delivering financial results, making work and workers productive, and managing a company’s social impacts. Technological advances have transformed — and continue to transform — the world in myriad ways since Drucker published that definition in 1974. But technology hasn’t changed Drucker’s tasks. Instead, it is giving rise to new and better ways of executing them. This new column aims to help you identify big ideas and new tactics at the intersection of technology and management.

advertisement

Gans-Keep-Calm-And-Manage-Disruption-Crown-1200

Keep Calm and Manage Disruption

Disruption can be averted, and many businesses manage through it by beating the new competition, joining them, or waiting them out. “To be sure, facing disruption is no picnic,” writes Joshua S. Gans, author of The Disruption Dilemma. “But it also isn’t the existential threat that so many see it as.” Many businesses are finding ways to weaken disruptive events, sometimes by investing aggressively in the new innovation after entrants had brought it to market or by acquiring the entrants and the actual disruption.

mangelsdorf--1000

How Transparency Changes Business

The Winter 2016 issue of MIT Sloan Management Review explores how increased transparency — and, in particular, the ready flow of information in a digital world — is changing the environment in which corporations operate. Transparency also is changing the distribution of power between large organizations and those who challenge them. Executives need to anticipate the possibility that any issues related to their company could someday be public knowledge.

Lo-Hollywood-Finance-Funding-1200

Lessons From Hollywood: A New Approach To Funding R&D

Could science-based industries benefit from a financing model similar to one used to make Hollywood movies? “We propose that a form of governance centered on the project rather than the company may be a more efficient way to organize innovation in science-based industries,” write the authors. Their proposal addresses the fact that traditional venture capital “wasn’t designed to deal with the costs, risks, and slow payout of science-based industries.”

Austin-Martha-Payne-School-Lunch-Blog-Human-Rights-1200

Leading in the Age of Super-Transparency

Thanks to social media and an increasing flood of data, the capacity to generate causes and controversies almost instantly has become the new norm in today’s “super-transparent society.” Individuals and organizations produce a voluminous, mostly involuntary, “digital exhaust,” which reveals much more about them than they think it does. Most business leaders have not yet come to grips with the new reality — and what it means for their organizations.

Jaeggi-Environmental-Forest-1200

Environmental and Human Rights Assume a New Urgency for Boards

The G7 summit in June of 2015 and the G20 meeting in November both upheld the idea that businesses have a responsibility to respect environmental and human rights principles. As such concerns take center stage, business leaders must recognize their role in navigating the new regulatory environment. As environmental and human rights risks rise in importance, board members are at risk of being seen as negligent if they fail to ensure that their companies comply with the G20/OECD Principles and the standards to which the Principles refer.

advertisement

Orozco-Lawsourcing-Corporate-Law-Social-Media-1200

Using Social Media in Business Disputes

An emergent defensive strategy is being used by both upstart players facing established competitors and by newcomers (such as Tesla, Airbnb, and Uber) facing government regulators. Called “lawsourcing,” the strategy advances legal and public relations goals through social media campaigns, online petitions, and boycotts to draw attention to disputes. These tactics are often framed in moral and ethical terms, and they are being initiated by even very small players.

Cusumano-Gates-Jobs-strategy-1200

Mastering Strategy

How can executives develop their skills as strategists? One way is to learn from the masters. The book Strategy Rules: Five Timeless Lessons From Bill Gates, Andy Grove, and Steve Jobs (HarperCollins, 2015) explores insights drawn from the careers of these former CEOs of Microsoft, Intel, and Apple. In a Q&A, the book’s authors, David B. Yoffie of Harvard Business School and Michael A. Cusumano of MIT Sloan, explain how strategic thinking is a capability that leaders — even the superstars — develop over time.

mangelsdorf--1000

From the Editor: Disruption Everywhere?

The Fall 2015 issue of MIT Sloan Management Review has two big themes: developing tomorrow’s leaders, and disruption. In a special report on leadership, four articles explore how to engage, keep, and train the next generation of managers. “Preparing for Disruptions Through Early Detection” highlights the detection techniques to become more resilient. And “How Useful Is the Theory of Disruptive Innovation?” takes a deep dive into Clayton M. Christensen’s influential theory of disruptive innovation.

Cennamo-Andrew-Mason-1200

How to Avoid Platform Traps

Many of today’s most successful technology businesses— including Apple, Facebook, and Uber — are built on a platform-based business model. But the increasing popularity of platform strategies masks a difficult truth: Such strategies are hard to execute well, and they are prone to several common pitfalls. Those platform traps include growth with no strategic focus, pursuing an intermediate approach between the mass market and a niche, and overlooking the value proposition of partners.

Yossi-Sheffi-Tornado-Early-Detection-1200

Preparing for Disruptions Through Early Detection

In an adaption from his new book The Power of Resilience, MIT’s Yossi Sheffi explains how companies are learning to more quickly detect unanticipated problems that can interfere with their global operations. Sheffi looks at how leading companies are using an array of detection and response techniques, from sensors to supply chain control towers. These tools are helping companies become more resilient to disruptions such as hurricanes, the discovery of product contamination, and political events.

advertisement

Image courtesy of Southwest Airlines Co.

The Leaders’ Choice

The next generation of business executives will face a choice: What kind of companies do they want to lead? Organizations that will treat most employees as costs to be minimized — or ones where both employees and the company prosper together? So-called “high-road” companies begin with different values and assumptions about the workplace. But few MBAs are learning about high-road strategies in their courses, and they don’t learn that they will have distinct choices in how to compete.

Image courtesy of Flickr user A. Strakey.

How Useful Is the Theory of Disruptive Innovation?

Clayton M. Christensen’s theory of disruptive innovation has been very influential. But how well does the theory describe what happens in business? The authors of this article surveyed industry experts for each of 77 case examples of disruptive innovation found in two of Christensen’s seminal books. The results suggest that many of the cases do not correspond closely with four elements of the theory of disruptive innovation — and the theory may not fit as many situations as is often assumed.

UPS-HighTech-Play-1200

The Power of Resilience in a Time of Uncertainty

  • Research Highlight
  • Read Time: 1 min 

In an August 2015 webinar, MIT professor Yossi Sheffi, a renowned expert on supply chains, risk management, and resilience, shared insights and examples from his latest research and forthcoming new book, The Power of Resilience: How the Best Companies Manage the Unexpected. He offered insights on understanding and analyzing the types of risks companies face, as well as preparing for and coping with disruptions effectively.

Ben-Hur-guiding-CEO-learning-1200

Aligning Corporate Learning With Strategy

Too many corporate learning and development programs focus on the wrong things. “The word ‘learning,’ which has largely replaced ‘training’ in the corporate lexicon, suggests ‘knowledge for its own sake,’” write the authors. “However, to justify its existence, corporate learning needs to serve the organization’s stated goals.” Understanding the strategic agenda of the CEO should be a top focus of learning leaders, who can then developing an agenda that is reflective of the CEO’s priorities.

Weill-tool-online-1200

How is Digitization Affecting Your Business?

  • Blog
  • Read Time: 2 min 

How much of a threat does digital disruption present to your business? A short online questionnaire from Peter Weill and Stephanie L. Woerner, both of MIT Sloan’s Center for Information Systems Research, helps assess digital risk. “Although sweeping technology-enabled change often takes longer than we expect, history shows that the impact of such change can be greater than we ever imagined,” they write. “Think steam engines, cars, airplanes, TVs, telephones and, most recently, mobile phones and e-books.”

Showing 21-40 of 341