Creative or creational destruction describes the phenomenon of the new displacing the old. New technologies displace old technologies. New products displace old products. And new companies displace old companies.
Try to find examples of creative destruction. Also consider what impact creative destruction has had.
1. What technologies have disappeared and been replaced by others?
2. What products have disappeared and been replaced by others?
3. Do you find creative destruction perhaps in other areas? Maybe in sports? Think of strategies and positions in football. Think of movement patterns in the high jump. Maybe you can find creative destruction in a sports field that is closer to your interests.
This exercise is not designed to appeal to your lowest destructive instincts. Rather, it is to help you recognize the potential that lies in successful innovation. Displacing others with your own innovations certainly has the appeal of improving the economic situation of your company. On the other hand, and this is at least as important, the examples you have found show you what happens to those who do not successfully innovate. They are ousted. There are more than a few who interpret innovation as an issue that is economically decisive for life and death. Philosophers, practitioners and scientists all agree on this.
Management of innovation as overcoming boundaries
As we have seen, innovation plays a crucial role in keeping companies competitive. The underlying mechanism is creative destruction, which you have already addressed in this exercise.
If you have ever asked yourself what innovation management actually is, the following should answer your question:
We define innovation management as the monitoring, controlling and internal promotion of innovation activities. This includes the entire process from idea generation and market launch to the diffusion of new products or processes. Innovation management takes on a cross-sectional function in the company, which is usually also institutionalized in large companies, but is rarely defined as a function in small companies.
All innovation managers – regardless of the field, size or orientation of the company – constantly face boundaries. They must systematically try to overcome these boundaries: disciplinary and sectoral boundaries, boundaries of their own company and its organization, and boundaries between producer and customer.
Innovation management itself must try to overcome these challenges through creative and novel approaches. Let’s look at these boundaries a bit more here.
The Importance of Open Innovation and Collaboration
Question: Who do you need to realize your innovation ideas? Who are the key partners for implementation?