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Creative Destruction: A Six-Stage Process for Transforming the Organization (Spie Proceedings Series; 2362) Hardcover – January 1, 1995
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Top Customer Reviews
As already indicated, Nolan and Croson present and explain a "six-stage process for transforming the organization" at a time when there are extraordinary demands upon today's executives. For example, they must have or quickly gain mastery of new information technologies, new organizational structures, and managing a new dominant sector of employment: professional entrepreneurs. Worse yet, they confront what the authors characterize as "four main sources of inertia": business as usual, IT that locks in "business as usual", not evolving into an IT-enabled organizational structure, and finally, workers who are not going to fire themselves. What to do? In Chapter One, the authors recommend 20 information economy management principles, half of which have been "salvaged" from the industrial economy. (See Exhibit 1-2 on pages 16-17.) Then in Chapter Two, they introduce what they call "The Six Stages of Creative Destruction": Downsize!Read more ›
I had never heard about Joseph Schumpeter before, and I don't even remember where I came across the term "creative destruction", so I searched Wikipedia, next to Google, my nuber 1 source of information:
The Austrian economist Joseph Schumpeter used the term to describe the process of transformation that accompanies radical innovation. In Schumpeter's vision of capitalism, innovative entry by entrepreneurs was the force that sustained long-term economic growth, even as it destroyed the value of established companies that enjoyed some degree of monopoly power.
So, what Schumpeter is saying, is that large corporations eventually become rigid and antiquated and then replaces by faster-moving, responsive and innovative competitors, and one of the ways an economy moves forward is by destroying the old in order to create new opportunities.
The role of IT
One of messages from the book is that the last thing a company should think about is how to to stand the test of time, because once they are successful, companies tend to institutionalize the thinking that allowed them to thrive, and this, in turn, becomes their doom. If you stop innovating, if you do not destroy or transform, you die.Read more ›