What is \”disruptive change,\” and how is this different from \”incremental change?\” How does disruptive change affect an organization? Provide an example.

Discussion 3-2

Although organizations constantly experience change, it is important to note that these reforms usually cause reforms of varying degrees. Change in organizations can be classified as either disruptive or incremental. Disruptive change causes severe impacts on organizations. For this reason, firms should always be on the lookout for the indicators of disruptive change in order to prepare for the potential effects early enough (Kotter & Cohen, 2002). The purpose of this discussion is to differentiate between disruptive and incremental change including the effects of disruptive change on the organization.

Change can cause a massive shift in the expectations of consumers, eventually affecting business. Such a type of change is called disruptive change. According to Kotter and Cohen (2002), disruptive change is that type of reform that interrupts fundamental business processes in an industry, thereby causing a shift in business. For example, a technological innovation involving the creation of an online bookstore can change a market completely by causing a shift in the way products are sold to consumers. As opposed to disruptive change, incremental change is the type of reform that occurs gradually, allowing an organization to grow over time (Kotter & Cohen, 2002; Carucci, 2018). An example of an incremental change in a healthcare facility is the implementation of an electronic health records system to improve the quality of health care.

Disruptive change usually causes massive effects in organizations. For example, a disruptive change affects the financial performance of an organization because it decreases demand for a company’s products and services. An organization might also be forced to change the types of products and services it is offering to consumers as a result of disruptive change. The disruptive change also impacts operations in an organization as well as relationships with stakeholders (Carucci, 2018; Kotter & Cohen, 2002). When disruptive change occurs, it is upon an organization to devise strategies that will enable it to survive in the industry.

 

References

Carucci, R. (2018). 4 ways to face the challenge of disruptive change. https://www.forbes.com/sites/roncarucci/2018/02/12/4-ways-to-face-the-challenge-of-disruptive-change/?sh=4316fa3def7d

Kotter, P., & Cohen, D. S. (2002). The heart of change: Real-life stories of how people change their organizations. Boston, MA: Harvard Business Press. ISBN-13: 978-142218733