An Introduction to the Management of Innovation and Change 1

Unit 2 The Characteristics and Consequences of Radical Innovation

Aim
The aim of this unit is to enable you to define radical
innovation, distinguish it from other forms of innovation
and assess its impact on your living and working
environment
Objectives
As a result of studying the unit, you will be able to:
• Define radical innovation and distinguish it
from epochal and incremental innovation
• Explain the ideas behind long wave theory
• Distinguish between ordinary and
A good example of a radical product innovation is the
transverse engine designed by Sir Alec Issigonis. The
design made it possible to create the Mini Minor, the first
compact motor car. Obviously, the car had existed prior to
Sir Alec’s innovation; however, the new design resulted in
a dramatic change in consumer taste. The mini was fast
compact and economical. The rapid diffusion of the idea
and its take up by the Japanese in the 1970s was eventually
to have a profoundly destabilising effect on the American
automotive industry in the late 1980s. The opportunity to
launch compact vehicles in the US was created as a result
of the second oil crises. The Japanese decided to build
automotive plants in the United States. Unlike their
American counterparts who were committed to the idea of
Epochal Steam train From Iron Assembly
Aeroplane to Steel line production
production

extraordinary science
• Define the term paradigm and explain how
Transverse Just in Push to
breaking paradigms results in epochal and Radical time
production
Engine pull

radical innovation
• Consider your organisation’s dominant Made to
Windows 95 Kanban order mass
paradigm and the circumstances in which it Incremental Windows 98 production

might need to be re-evaluated.

What is radical innovation and how can it
be distinguished from other forms of
innovation?
There are essentially three types of innovation, epochal,
radical and incremental. As we saw in unit 1, innovation
can be observed in products, processes and systems.
Product Process System
the big car, the new Japanese plants were designed to
produce high volumes of the new compact vehicles. In the
early 90s General Motors was to declare the largest losses
in corporate history. Other examples include, launch of the
personal computer in the late 1970s that led to the
introduction of distributed processing and the creation of
the world wide web.

An epochal innovation is a term that we use to define

some major and dramatic change in how we perceive our
+ Think point!
Can you think of other examples
world. It shapes how things are done from then on.
Typically, it marks a dramatic discontinuity with the past.
Examples include the wheel, Tull’s seed drill, the railway
✍
locomotive and the transistor. Some might argue that the
wheel was an invention. Others perceive the wheel as
having been derived from rolling heavy objects on logs.
There is little that is new under the sun. What we are
usually observing is a radical insight that gives rise to a
wide range of new possibilities. Whether an innovation is
epochal or radical is usually a matter of perception. In
other words, how we define an innovation is a matter of
judgement and is probably best measured by observing
the consequences. Set out below is a framework that
shows two continuums that become more radical as they
move from the point of origin. A system incorporates a
bundle of processes.

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change 2

Long Wave Theories

The Russian economist Kondratieffi , writing in the early ✍
years of the twentieth century posited that major new An example of a radical product
technologies strike in waves. He estimated that these innovation……………..
waves come approximately every fifty years in what he
described as long cycles. According to this theory, we are
about three-quarters of the way through the computer age.
Toffler 1980ii focused our attention on three waves of
economic development that have shaped the modern age.
The effects of their diffusion are depicted in a series of
escalating S curves. They also point to the periods of
transition that denote dramatic early dislocation. In each
case, these periods of dislocation were followed by a 1. Was your innovation new to the organisation or to the
phase of steady economic growth, before a further bout of social setting in which it was to be used?
dislocation was induced as a result of the impact of new
forms of technology. Yes ❏ No ❏
The Three Stages of Economic Change Briefly describe the social setting
Economic
growth

Periods of social and economic

Information age
✍
disruption

1960-2000

Industrial age
1750-1850

Agricultural age

Time

1. Was its introduction intentional and of a non-routing

Each new phase brought in its wake new social systems, nature?
ways of organising and frameworks for the conduct of
business and commerce. Yes ❏ No ❏
Briefly describe who introduced the new product and with
The onset of the information age has produced social what purpose.
dynamics that in some respects are similar to those
released at the start of the industrial revolution only this ✍
time the migration has not been from countryside to town
but from manufacturing to the service economy. Before
the agrarian revolution, more than 95% of the population
lived off the land. By the early twentieth century, more
than 60% of the population in developed countries lived
in towns. By the end of the twentieth century in some
developed economies, almost 70% of the population work
in the service economy, 20-28% in manufacturing and
only 2% in agriculture and the primary sector.

Long wave theories all point to the fact that each new 2. Did it produce a publicly perceived benefit ?
wave has been driven by the advent of some form of new
technology. This new technology then rips through the
economy wreaking what the Austrian economist,
Yes ❏ No ❏
Briefly describe who the beneficiaries were and in
Schumpeter (1923) described as ‘gales of creative
what way they benefited.

Can you think of an example of a radical product

innovation that has impacted on your life or place of
✍
work. If you can, jot it down in the box below. Then
apply the tests to your example that follow.

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change
Were there any casualities?
Yes ❏ No ❏ 2) was introduced to the organisational setting deliberately,
Identify those jobs that were either made redundant or
significantly redefined as a result of the innovation.
✍ Was the laptop computer a radical or an incremental
Depending on how long ago you joined the labour force,
you may or may not remember the introduction of the
desk-top computer in the early 1980s. This is a good
example of a radical innovation. The computer epoch had
begun some 40 years earlier. The first electronic digital
computers were the Colossus built in England in 1943
and the Electronic Numerical Integrator and Computer
(ENIAC) built in the United States in 1945.
It should also not be forgotten that the first digital
computer was designed by Sir Charles Babbage (born
1791;died 1871), a founder of the Analytical Society.
Babbage’s work was so advanced that the precision
engineering he required was not available. British
scientists finally produced a computer built to Babbage’s
specification in 1991, Difference Engine No. 2. It can be
seen in the science museum in London. It has been found
to be accurate to 31 digits.
Charles Babbage , detail of an oil
painting by Samuel Lawrence, 1845; in
the National Portrait
Gallery,
By courtesy of the National Portrait
Gallery, London
Source: Encyclopaedia Britannica CD
1999 Multi media edition ©1 004-9
By the early 1980s most large organisations had
established centralised computer service departments that
controlled the full range of computer activity within the
organisation. The emergence of the desk-top machine
frequently resulted in the break-up of those powerful
centralised departments. The staff in them had to undergo
a considerable amount of retraining before they were re-
deployed or devolved as experts tasked with providing
support to line departments. The staff who worked in line
departments were also subjected to a considerable amount
Designed and written by Nigel Bassett-Jones, Oxford Brookes University
3
of retraining. They were required to become computer
literate and to process data that would formerly have been
the responsibility of the Computer Services Department.
Here we see an innovation that was, 1) new to the social
setting of all organisations,
3) produced publicly perceived benefits, 4) produced
casualties in the form of computer service staff being
devolved and departmental staff being required to become
computer literate.
innovation?
This is tougher question to answer. At one level it was
simply a reduction in the size of the desktop computer
rendering it portable. At another, it can be argued that its
effects were radical. It enabled managers and sales people
to access computers whilst travelling, anywhere in the
world. Previously, these managers often had secretaries
who cushioned them from the need to interact directly with
new technology. The advent of the laptop, made it
impossible for managers to evade the need to achieve some
level of computer literacy, moreover, many lost their
secretarial support. Clearly this was not good news for
secretaries or indeed the managers, many of whom
perceived a significant loss of status.
An example of a radical process innovation relates to the
emergence of the Call Centre, in the late eighties and early
nineties. Direct Line caused significant turbulence in the
insurance industry when it used call centres to cut out
insurance brokers. The introduction of the ATM (cash
point machine) combined with call centre technology
revolutionised the nature of branch banking and prompted
the shift to retail banking.
If the computer revolution had already happened, then your
example might well involve the internet or mobile
telephony. The key test of whether or not your example is
a radical product or process innovation revolves around
whether you were able to answer ‘yes’ to each of the four
questions…
The difference between ordinary and
extraordinary science
Earlier, we considered the work of Watson, Crick who
identified the mechanism for the precise replication of
genes. They were awarded the 1962 Nobel Prize for
Physiology or Medicine for their determination of the
molecular structure of deoxyribonucleic acid (DNA), the
chemical substance ultimately responsible for hereditary
control of life functions. This accomplishment was widely
regarded as one of the most important discoveries in the
field of 20th-century biology.
 An Introduction to the Management of Innovation and Change
A possible method for the
replication of DNA according to
Watson and Crick.
The arrows indicate the direction of
rotation
Source: Encyclopaedia Britannica CD 1999 Multi media
edition ©1994-9
What is extraordinary science and how does it
differ from ordinary science?
The publication of Sir Isac Newton’s Principia
Mathematic (1687) marked the culmination of a
movement begun by Copernicus and stands as the symbol
of the scientific revolution. Newton established the
fundamental scientific principle that conformity of
observation to prediction demonstrated the essential truth
of a theory. He went on to show how, through the
judicious use of hypotheses, the way could be opened for
experimental investigation that would ultimately lead to
the development of a coherent theory. According to
Newton, scientific theory had to be founded upon clear
descriptions and reproducibility of experiments. For a
theory to qualify as a theory it must in principle be
capable of being proven false. It was these principles that
distinguished the great thinkers of the enlightenment and
provided the essential framework of the scientific
paradigm.
Kuhn (1970) drew a distinction between what he called
normal science and extraordinary science. Normal
science, as you know, does not seek to identify something
new. It is what scientists spend the vast bulk of their lives
engaged in. In seeking answers to questions through the
application of the scientific method, scientists operate in
what Khun iii defined as a paradigm. A set of commonly
held beliefs that scientists share about the problems that
confront them, the nature of the phenomena they are
observing, the methods to be deployed in conducting
experiments and the core generalisations that sit at the
heart of their discipline.
Staceyiv (1993) defined a paradigm as ……….
“a set of preconceptions we bring from our
past to each new situation we have to deal
with. The paradigm is, as it were, the lens
through which we look at the world and it
therefore determines what we perceive. A
paradigm is a set of beliefs or assumptions
Designed and written by Nigel Bassett-Jones, Oxford Brookes University
4
we make about the world, normally beneath
the level of awareness and therefore mostly
never questioned. As we live and work with
other people, we come to share a particular
way of focusing on the world and that shared
paradigm determines what explanations we
develop and agree upon amongst ourselves.
The origins of all our explanations of
everything, therefore, lie in the process of
socialisation, in the shared cultures formed by
people in groups. The paradigm flows from
shared past experience and is reflected in our
skilled behaviour, that is the rapid actions we
take automatically to perform complex tasks
without thinking about how, and often why,
we are performing them.” P.78
Normal science, therefore, operates within its own
paradigm and does not set out to challenge established
theory but rather, to develop it further within the
framework of the existing paradigm. From time to time,
however, issues arise that cannot be explained. As more
and more evidence accumulates some individuals who are
experts in the field will begin to challenge the received
wisdom. They will question the nature of the established
paradigm. As in the case of Copernicus they are generally
seen as heretics. However, if the anomalous results
continue to accumulate, an alternative paradigm is likely to
emerge. This produces conflict between the traditionalists
and the new thinkers. Normal science under these
circumstances cannot continue until one paradigm is
displaced by another. Only then, can scientists once again
agree about the nature of their world of study and the key
problems that confront them. Major scientific advance,
therefore, is founded upon paradigm breaking and
construction.
Can you think of any examples of the destruction of a
paradigm? Jot your thoughts down in the box below.
When you have done this double click on the link and look
at some examples.
My example of a destruction of a paradigm
✍
There are literally thousands of examples from every walk
of life. Set out below are just a few.
 An Introduction to the Management of Innovation and Change 5

The world is flat. This paradigm was finally broken when fundamental scientific paradigm has been challenged,
Vasco da Gama’s voyage resulted in the first resulting in a scientific breakthrough that has generated a
circumnavigation of the world. technology push.

Nicolaus Copernicus challenged the dominant belief that What about radical innovations in products, systems and
god had created the earth and placed it at the centre of the processes? As a general rule these are not the result of
universe. advances in basic science, rather they are the products of
the efforts of innovators; people who have spotted
established ideas and transferred them to a new context,
Source: Encyclopaedia Britannica CD 1999 Multi with a view to financial advantage. We have already
media edition ©1994-9 considered the work of Sir James Dyson and the
Copernicus , 17th-century incorporation of cyclone technology into the domestic
copy of a 16th-century vacuum cleaner and Sir Alec Inssigonis’s deployment of
portrait. In the Museum
self- the transverse engine that provided the motive power for
Jagiellonian
of ... the mini minor.
By courtesy of the
Jagiellonian
Museum of Kraków, Can you think of any examples of a radical process
innovation from the recent past?
The dominant paradigm was based on the Ptolemic
system. In formulating his heliocentric theory, Jot down any thoughts that you may have in the box below
Copernicus was able to describe the movements of the and then subject your response to the four questions listed
Moon and planets in a more mathematically convincing beneath by ticking the appropriate box.
way than Ptolemy using the geocentric system. To fit the
observations, Ptolemy had offset the centres of regular An example of a radical process innovation
motion a slight way from the centre of the Earth. This
formed the basis of the Copernican challenge because it ✍
conflicted with the basic principle of circular motion. The
new paradigm effectively undermined over 1000 years of
Roman Catholic dogma and ultimately resulted in the
erosion of Natural Law Theory and its displacement by
Social Contract/Will Artefact Theory. These
developments in philosophical thought were to lead in
turn, to the collapse of political orders founded on the Now evaluate your choice by using the four criteria cited
divine right of kings paving the way for the English Civil earlier.
War and the French Revolution.
1. Was your process innovation new to the organisation
In the context of bioscience, the scientific contribution of or to the social setting in which it was to be used?
Louis Pasteur, French chemist and microbiologist, were
both varied and valuable. Pasteur proved that micro- ❏ Yes ❏ No
organisms cause fermentation and disease, he was also the
first to use vaccines for rabies, anthrax, and chicken 2. Was its introduction intentional and of a non-routine
cholera and his pioneering work in stereochemistry nature?
resulted in the process we now know as pasteurization.
❏ Yes ❏ No
The contributions of Louis Pasteur,
French chemist and microbiologist were Briefly describe who introduced the new product and with
among the most varied and valuable in
the history of science and industry.
what purpose. ✍
It was Pasteur who established that
micro organisms cause fermentation and
disease.

Pasteur. Source: Encyclopaedia Britannica CD 1999

Archives Multi media edition ©1994-9
Photographiques

Wherever we look in industry and commerce we will

observe unquestioned assumptions that are based upon a 3. Did it produce a publicly perceived benefit?
dominant paradigm. When we encounter an epochal
product innovation, the likely-hood is that some

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change 6

❏ Yes ❏ No
Briefly describe who the beneficiaries were and in
what way they benefited.

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change 7

to serious levels of inefficiency. Kanban was a process that

✍ provided visual triggers that signalled a call for stock
replenishment without the need for paperwork, eventually
it led to another process that we now know as just–in-time
production. Just in time methods were eventually perfected
by organisations like Dell computers.

Dell has now patented its processes of made-to-order mass

production. These processes ensure that companies can be
responsive to the unique or specific requirements of
individual customers.
4. Were there any casualties? changes
Your organisation and its dominant
❏ Yes ❏ No
paradigm
Identify those those jobs that were either made redundant Now that we have given consideration to the nature of
or significantly redefined as a result of the process paradigms and the difference between ordinary and
extraordinary science, it is time for you to give
✍ consideration to the paradigms that dominate your
organisation and to ask two questions,

+ Think point!
What is the dominant paradigm?

Again there are very many examples that could be cited. ✍

Perhaps the most important in terms of manufacturing, is
the introduction of the assembly line by Henry Ford. This
innovation resulted in the shift to mass production.
Another example is the introduction of total quality
management. The principles of quality management were
established before the second-world war by two
Americans, Walter Shewart, and W. Edwards Deming,.
Is the dominant paradigm still appropriate?
Their ideas were picked up and imp lemented after the war
as a result of Deming being sent to Japan as part of an
American aid strategy. Deming’s task was to assist the
Japanese in post-war reconstruction. He provided the
Japanese with advise on how they could improve their
approach to quality control. His ideas resonated strongly
with the risk averse-nature of Japanese culture. They
were studied extensively and widely adopted throughout Clearly these are very difficult questions to answer. The
Japan. One of the leading companies to buy-in to the reason is that your organisation is likely to be founded
Deming approach, was Toyota. The company, under the upon multiple paradigms. If it produces products, there
leadership of Ohno Taiichi, developed its own radical new will be a dominant product paradigm; however, there will
manufacturing philosophy that became known as the also be dominant process and service paradigms.
Toyota manufacturing system.
Set out below, is a model of a typical industry value chain.
The Toyota approach had embedded within it, a wide It is based on the Porter and McKinseyv value chains.
array of process improvements. Deming had made it Briefly, Porter’s concept of the value chain is that an
possible for companies to aspire to zero defects. Once organisation and an industry consists of a series of linked
Toyota had succeeded in reducing errors to minute levels, activities, each of which through its contribution to the
it was possible to eliminate virtually all paperwork. This process that eventually results in a product arriving in the
was a vital development for the Japanese, because unlike hands of an end user, adds value. In the context of a single
the western alphabet that has 26 letters, Japanese kanji has organisation, the cumulative process of value adding
3600 characters. Inefficient production systems with high activity results in the company achieving an overall profit
levels of component failure, had resulted in Japanese margin for the business.
companies becoming swamped in paperwork, contributing

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change 8

The Industry Value Chain

Basic Applied Product/
Manufacturing/ Distribution Service
research research service
Service delivery
Markeitng
design

One of the ways of testing the adequacy of the value chain
is to examine the company’s balance sheet and profit and
loss statement and look for trends. Ask the following
questions:
• Are revenues or profits growing, static or
declining? (If your company is newly established,
then it may not yet be profitable. In this event it is
better to concentrate on revenues. If the
organisation is not yet generating revenues, focus
on its ability to achieve critical milestones).
• Is the customer base expanding contracting or
remaining much the same?
• Are customer complaints rising or falling?
If you detect adverse trends in answer to any of these
questions, then this might be an early warning that the
organisation is either already facing problems or is about to
face problems.
To help you in your task, you are strongly recommended to
read Marketing Myopia by Theodore Levitt, first published
in 1975 in the Harvard Business Review, September-
October, pp.26-48. This is a seminal work for both
students of marketing and students of innovation and
change. Set out below is a brief resume.
Levitt argues that every industry was once a growth
industry. The reason that growth slowed or stopped, he
suggests is not because the market was saturated but
because of management failure, failure at the top. He then
goes on to identify a range of industries that have
encountered difficulties including railways, following the
arrival of the car, and Hollywood, once television became
established. He suggests that the periods of decline arose as
a result of the intransigence of the industry’s leaders in
refusing to redefine the nature of the industry in which they
operated.
Adverse trends in profitability, sales and customer growth
Levitt suggests are not seen as temporary phenomena.
Reassurance is sought by engaging in what he describes as a
‘self deceiving cycle’ that is typically founded on four
myths:
• A conviction that because the population is becoming
more affluent a growth trajectory will reassert itself
• A belief that there is no real substitute for the industry’s
major output
• The future can be secured through improvements in
processes that will lead to cost reduction and
improvements in profit margins
• By focusing on product improvement through
controlled scientific experimentation cost reductions
will result in a restoration of growth.
Levitt challenged the concept of a growth industry, arguing
instead, that there are only companies organised and
operated to create and capitalise on growth opportunities.
They can only continue to prosper by constantly
challenging their dominant paradigm. They do this by
asking the ‘Business Question.’ It is a simple question, but
also one that is profound and potentially very threatening.
Managers must ask themselves, “what business are we
in?”
The nature of their response will define the future direction
and strategy of the firm. If they always come up with the
same answer and argue for a status quo that is predicated
on any one or more of the myths identified above, then the
future success of the business must be in doubt because its
management may be suffering from marketing myopia.
What would have happened if the railway companies had
answered the business question by saying, “we are in the
transportation business?” It seems probable that they
would have established new operating divisions that
specialised in automotive and aerospace activity and the
disastrous cycle of decline would probably have been
averted.
Listed in the box below are a number of well-known
examples of organisations that have successfully redefined
their business objectives and launched their operations on
an entirely new growth trajectory. Beneath that is second
box that lists some well known organisations that have
encountered serious difficulties in recent years because of a
failure either to ask the business question or alternatively,
come up with the same traditional answer.
Company Foundin From To
g date
Nokia C1836 Consumer Mobile Telephony
Electronics
GE (Formerly 1878 Consumer Diversified
the Edison Electronics Services
Light Co
Christian 1853 Whalin g Diversified
Salvesen Company/Foo Transport and
d Logistics
Manfufacturer

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change
Company Myth
IBM The future lies in mainframe computers!
J. S. Sainsbury We are simply the best!
Marks and Spencer We understand our customers!
The companies listed above all have strong brands and good
reputations. At some point their decline has been or will be
halted. Before this can happen, however, a new paradigm or
paradigms must first be asserted in one or more of the links
in the value chain. It has already happened in the case of
IBM. The company has redefined itself as an IT service
provider and Consultancy Company rather than a
manufacturer of computer equipment. In so doing, the
company has sought to lever one of its major core
competencies, developing fixes for complex technical
problems.
You will almost certainly have difficulty answering the
question in a way that challenges the dominant paradigm. If
this is the case don’t worry unless the sales turnover or
milestone trend lines tell you that you should.
In the next unit we will consider some of the techniques you
might be able to deploy to help you answer the question.
Summary
In this unit we began by defining radical innovation and
distinguishing it from epochal and incremental innovation.
We concluded that to s ome extent defining an innovation as
radical is a rather subjective process because it is a matter of
degree. Nevertheless, it was agreed that an epochal
innovation invariably involved a radical discontinuity that
resulted in an entirely new way of viewing a significant
problem confronting mankind. We also recognised that the
cumulative effect of a series of small incremental
Designed and written by Nigel Bassett-Jones, Oxford Brookes University
9
innovations could ultimately lead to a radical
transformation in a product, system or process.
Having established the difference between epochal and
radical innovation we looked at the ideas of Krondatieff
and long cycle theory. In line with Krondatieff’s
proposition we concluded that the computer age was at
least two thirds of the way through its long wave cycle.
We then went on to consider the difference between
ordinary and extraordinary science. Whilst the former
involved the application of established routines that
replicated test results consistently, the latter, involved
breaking an established paradigm.
Kuhn’s concept of the paradigm was defined as “the lens
we use to look at our world and interpret the events and
processes we observe.” Our paradigms, therefore, not only
determine what we perceive to be important, but also how
we perceive them.
In the final section we concluded that all organisations
operate within what may be defined as a series of
paradigms in respect of product, process and service
considerations. The existence of dominant paradigm,
whilst it may help an organisation to compete successfully
for a long time can also pose a significant threat because it
can blind us to new possibilities. Worse still, it can
encourage us to engage in a form of organisational self-
delusion. These delusions emanate from the very top. If
such delusions are to be avoided, then it is important to ask
the business question at regular intervals, “What business
are we in?” The question can be asked at the organisational
and at the departmental level. An appropriate response
may well result in the business pursuing a different mission
and trajectory.
 An Introduction to the Management of Innovation and Change 10

Quiz
1. Fill in the blanks by inserting the number adjacent to each descriptor below into the appropriate box on the
diagram

Epochal Steam From Iron Assembly 1. Steam train/Aeroplane

Engine
Aeroplane to Steel line production 2. Just in Time
production 3. Epochal
4. Process
5. Assembly line production
6. Product
Radical
Transverse Synchronou Push to 7. Kanban
Engine sProduction pull 8. Radical
9. Windows 95/Windows 98
10. Made to order mass production
11. Incremental
12. Push to pull
Windows 95 Just in
Incremental Windows 98
Kanban 13. Transverse Engine
production
time
14. From iron to steel production
Product Process System 15. System

2. Identify whether the following statements are true or false

According to Kondratieff’s theory:

True False
Industries can expect fifty years of continuos growth
Long cycles last approximately 50 years
At the end of a long cycle there is a dramatic social dislocation
At the start of a new long cycle there is dramatic social dislocation
The emergence of new long cycles result in gales of creative destruction

3. Consider the statement that follows and then identify which of the following permutations of
observations is correct

The onset of the information age has resulted in:

a) people migrating from town to country

b) people migrating from country to town
c) people migrating from manufacturing to the service economy
d) people migrating from agriculture to manufacturing
e) people migrating from agriculture to the service economy

1. (a), (b), (c)

2. (c), (d), (a)
3. (b),(c), (a)
4. (d), (e)
5. (c), (d), (e)
6. (a), (c), (e)
7. (a), (b), (c), (d), (e)

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change 11

4 Thomas Kuhn drew a distinction between what he called normal science and extraordinary science. Normal
science involves operating within an established paradigm.

Listed below are series of statements relating to Kuhn’s concept of a paradigm. Identify those that you believe to be correct:

a) a set of preconceptions we bring from our past

b) the lens through which we look at the world
c) a set of beliefs or assumptions we make about the world
d) a paradigm is mostly never questioned
e) a shared paradigm determines what explanations we develop and agree upon
f) a paradigm flows from shared past experience
g) a paradigm is reflected in our skilled behaviour
h) a paradigm enables us to undertake complex tasks without requiring us to think why we are performing them

1. (a), (c), (d), (f)

2. (a), (c), (d), (g)
3. (a), (c), (d), (g), (h)
4. (a), (b), (c), (d), (g), (h)
5. (b), (c), (d), (g), (h)
6. (b), (c), (d), (g), (h)
7. (b), (c), (d), (e), (f), (g), (h)
8. (a), (c), (d), (e), (f), (g), (h)
9. (a), (b),(c), (d), (e), (f), (g), (h)
10. (a), (b),(c), (e), (f), (h)
11. (a), (b),(c), (d), (e), (f), (h)
12. (a), (b),(c), (e), (f), (g), (h)

5. Theodore Levitt identified a number of myths that enabled managers to rationalise why their industry or their
business had encountered a setback. From the list identified below select the numbers relating to the observations
made by Levitt.

a) A conviction that because the population is becoming more affluent a growth trajectory will reassert itself
b) Negative growth can be attributed to many things
c) Negative growth reflects patterns in the economic cycle
d) A belief that there is no real substitute for the industry’s major output
e) A belief as people become more affluent their tastes change
f) The future can be secured through improvements in processes that will lead to cost reduction and improvements in profit
margins
g) Product improvement in line with customer needs is the key to success

1. (a), (b),(c),
2. (b),(c), (d), (e)
3. (b),(c), (d), (e), (f),
4. (a), (d), (f),

Designed and written by Nigel Bassett-Jones, Oxford Brookes University

 An Introduction to the Management of Innovation and Change 12

5. (a), (c), (f),

6. (a), (b),(c), (d), (e), (f), (g)
7. (d), (e), (f), (g)
8. (a), (c), (d), (f)
9. (b), (d), (f), (g)

i Hall, P. (1981) The Geography of the Fifth Kondratieff Cycle, New Society, 26 March pp. 535-7.
ii Toffler,A. (1980) The Third Wave, Pan Books: London
iii Khun, T. S. (1970) The Structure of Scientific Revolution, University of Chicago Press
iv Stacey, R. (1993) Strategic Management and Organisational Dynamics, Pitman Publishing: London
v Grant, R.M. (1991) Contemporary Strategy Analysis, Basil Blackwell: Cambridge Massachusetts

Designed and written by Nigel Bassett-Jones, Oxford Brookes University