In this chapter we have seen that industries are periodically revolutionized by new competitors that champion new technology. If established businesses are to survive the paradigm shifts initiated by new technology, they must change their strategy and organization architecture. This requires managers to adopt a systematic approach to organizational change that neutralizes inertia forces that defend the status quo and forges ahead with meaningful business transformation. We have also discussed what steps managers must take to make their own organizations successful at generating both quantum and incremental innovations.

Why does this material matter for students of management? We live in a world in which change is constant. Competition is a process that is driven by the development of new products, processes, and business models some of which destroy old business models, while creating entirely new product market opportunities. To succeed as a manager you must understand how this process works and be ready to play a part in leading it. You must be able to stay ahead of the competition by pushing your organization to develop better innovations, recognizing paradigm shifts when they occur. You must be ready to push for change in the strategy and organization architecture of your company so that it can adapt, survive, and prosper when facing a new competitive reality. For change to be successful, you must be able to identify inertia forces in your organization and know how to counteract them, helping the organization overcome the inevitable resistance to change. These skills mark truly great managers.