Companies' Capabilities

Initially, it was slightly incomprehensible as to why so many organizations are having so much difficulties dealing with the challenge of disruptive changes as well as why companies lose the ability to enter small, emerging markets as they successfully grow and become larger. The article “Meeting the challenge of disruptive change” was a very interesting read for me and together with the points discussed in class, I was able to better comprehend the rationale behind these challenges faced by large organizations. Well, if managers are usually able to foresee disruptive changes coming, and most of these organizations have sufficient resources to deal with these changes, what’s the issue? It turns out that most managers tend to put their focus and emphasis on assessing individual’s capabilities, but what they are lacking in is the habit to assess an organization’s capabilities as a whole! In addition, when it comes to defining an organization’s capabilities, many managers tend to talk about the organization’s resources such as human capital, financial resources, strong product portfolios, customer base etc. However, innovation sustainability takes more than just resources! There are two other factors, processes and values, which affect an organization’s capacity to change. During presentation, some of my peers asked “Why is it that companies lose the ability to enter small, emerging markets as they successfully grow and become larger?” and told me that they were unable to comprehend the rationale behind this statement. Well, the article explained this pretty well and it is talks about how the company’s values play a role because values reflect the company’s cost structure or its business model and these define rules its employees must follow in order for the company to prosper. Values discuss the way the company judges acceptable gross margins and how big a business opportunity has to be before it can be interesting. As companies add features