89  Managing Technological Change

89.1 Concept

Managing Technological Change = the systematic process of planning, implementing and assimilating new technology so that organisations realise its full strategic and operational benefits. Joseph Schumpeter (1942) called this “creative destruction”. Everett Rogers wrote Diffusion of Innovations (1962); Clayton Christensen wrote The Innovator’s Dilemma (1997).

89.2 Drivers of Technological Change

TipDrivers
  • Globalisation and competition.
  • Customer expectations.
  • Regulatory mandates — GST, e-invoicing, DPDP.
  • Cost pressures.
  • Workforce changes — remote, gig.
  • Sustainability.
  • Emerging technologies — AI, IoT, blockchain.
  • Crises — COVID accelerated digital.

89.3 Rogers’ Diffusion of Innovations

TipRogers (1962) — 5 adopter categories
  • Innovators (2.5 %) — venturesome.
  • Early Adopters (13.5 %) — respected.
  • Early Majority (34 %) — deliberate.
  • Late Majority (34 %) — sceptical.
  • Laggards (16 %) — traditional.

Diffusion curve S-shape. Attributes of innovations: Relative Advantage · Compatibility · Complexity · Trialability · Observability.

89.4 Christensen’s Disruptive Innovation

Clayton Christensen — The Innovator’s Dilemma (1997) — established firms fail not despite doing things right, but because of it. Sustaining vs Disruptive innovation. Examples: digital photography (Kodak), mini-mills (steel), smartphones (Nokia), streaming (Netflix vs Blockbuster).

89.5 Technology Adoption Model (TAM) — Davis (1989)

TipTAM

Fred Davis (1989) — adoption is driven by: - Perceived Usefulness (PU). - Perceived Ease of Use (PEOU). → Attitude → Behavioural Intention → Use.

Extensions: TAM2 (Venkatesh-Davis 2000); UTAUT (Venkatesh 2003); UTAUT2 (2012) added hedonic motivation, price value, habit.

89.6 Technology Life Cycle

TipTech S-curve
  • Embryonic — emerging, uncertain.
  • Growth — rapid adoption.
  • Maturity — slowdown.
  • Decline / Replacement — substituted by next S-curve.

Gartner Hype Cycle: Innovation Trigger → Peak of Inflated Expectations → Trough of Disillusionment → Slope of Enlightenment → Plateau of Productivity.

89.7 Change-Management Frameworks

TipChange frameworks
  • Kurt Lewin (1947) — Unfreeze · Change · Refreeze.
  • John Kotter (1996) — 8 Steps.
  • ADKAR — Jeff Hiatt / Prosci — Awareness, Desire, Knowledge, Ability, Reinforcement.
  • Bridges Transition Model — Ending · Neutral Zone · New Beginning.
  • McKinsey 7S — Strategy, Structure, Systems, Style, Staff, Skills, Shared Values.
  • Burke-Litwin causal model.

89.8 Resistance to Technology Change

TipSources of resistance
  • Fear of job loss.
  • Skill gap.
  • Loss of status / control.
  • Habit.
  • Misinformation.
  • Past failed projects.
  • Trust deficit.
  • Privacy concerns.

Overcoming resistance: communication · participation · training · facilitation · negotiation · co-optation · coercion (Kotter & Schlesinger 1979).

89.9 Technology Strategy

TipTech strategy options
  • First mover · Fast follower · Late entrant.
  • Build vs Buy vs Partner.
  • In-source vs Outsource.
  • Open innovation (Henry Chesbrough 2003).
  • Make-buy-borrow-acquire.
  • Internal R&D · Joint venture · Acquisition · Licensing.
  • Innovation portfolio — Core, Adjacent, Transformational (McKinsey 70-20-10).

89.10 Special Indian Initiatives

TipIndian initiatives in tech change
  • Digital India 2015.
  • Atmanirbhar Bharat 2020.
  • Startup India 2016.
  • IndiaAI Mission 2024.
  • Semicon India 2021.
  • National Quantum Mission 2023 (INR 6,003 Cr).
  • National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS).
  • Bharatnet — rural broadband.
  • DPI India Stack export.
  • Aadhaar · UPI · ONDC as success cases.
  • Drone Shakti.
  • 5G launched 2022.

89.12 Practice Questions

Q 01SchumpeterMedium

"Creative destruction" is by:

  • AJoseph Schumpeter
  • BChristensen
  • CRogers
  • DDrucker
View solution
Correct Option: A
Schumpeter 1942.
Q 02RogersMedium

"Diffusion of Innovations" (1962) is by:

  • AEverett Rogers
  • BDavis
  • CLewin
  • DKotter
View solution
Correct Option: A
Everett Rogers.
Q 03Rogers %Hard

Rogers' "Innovators" represent what % of adopters?

  • A2.5 %
  • B13.5 %
  • C34 %
  • D16 %
View solution
Correct Option: A
2.5 % innovators; 13.5 % early adopters.
Q 04TAMMedium

TAM (1989) was developed by:

  • AFred Davis
  • BRogers
  • CVenkatesh
  • DChristensen
View solution
Correct Option: A
Technology Acceptance Model.
Q 05LewinMedium

Lewin's change steps are:

  • AUnfreeze-Change-Refreeze
  • BPlan-Do-Check-Act
  • CADKAR
  • DDMAIC
View solution
Correct Option: A
Kurt Lewin (1947).
Q 06KotterMedium

Kotter's change model has:

  • A8 steps
  • B5 steps
  • C3 steps
  • D7 steps
View solution
Correct Option: A
8 steps (Kotter 1996).
Q 07ChristensenMedium

"The Innovator's Dilemma" (1997) is by:

  • AClayton Christensen
  • BDrucker
  • CRogers
  • DSchumpeter
View solution
Correct Option: A
Clayton Christensen (HBS).
Q 08Gartner HypeHard

Gartner Hype Cycle's final stage is:

  • APlateau of Productivity
  • BPeak of Expectations
  • CTrough of Disillusionment
  • DInnovation Trigger
View solution
Correct Option: A
Plateau of Productivity is final.
Q 09ADKARHard

ADKAR is by:

  • AJeff Hiatt (Prosci)
  • BKotter
  • CLewin
  • DBridges
View solution
Correct Option: A
Prosci's ADKAR (Awareness, Desire, Knowledge, Ability, Reinforcement).
Q 10UTAUTHard

UTAUT (2003) is by:

  • AVenkatesh et al.
  • BDavis
  • CRogers
  • DAjzen
View solution
Correct Option: A
Viswanath Venkatesh et al.
Q 11Open innovationHard

Open Innovation (2003) is by:

  • AHenry Chesbrough
  • BChristensen
  • CDrucker
  • DPorter
View solution
Correct Option: A
Henry Chesbrough, Berkeley.
Q 125G IndiaMedium

India launched 5G services in:

  • A2022
  • B2020
  • C2024
  • D2018
View solution
Correct Option: A
October 2022.
Q 137SMedium

McKinsey 7S includes all except:

  • AStrategy
  • BStyle
  • CStock
  • DSkills
View solution
Correct Option: C
Strategy, Structure, Systems, Style, Staff, Skills, Shared Values.
Q 14Innovation portfolioHard

McKinsey 70-20-10 splits innovation into:

  • ACore / Adjacent / Transformational
  • BTactical / Strategic / Operational
  • CBuild / Buy / Partner
  • DLean / Agile / Waterfall
View solution
Correct Option: A
70 Core + 20 Adjacent + 10 Transformational.
Q 15MatchHard

Match:

(i) Diffusion of Innovations (a) Christensen
(ii) TAM (b) Davis
(iii) Disruptive Innovation (c) Rogers
(iv) Open Innovation (d) Chesbrough
  • A(i)-(c), (ii)-(b), (iii)-(a), (iv)-(d)
  • B(i)-(a), (ii)-(b), (iii)-(c), (iv)-(d)
  • C(i)-(b), (ii)-(c), (iii)-(d), (iv)-(a)
  • D(i)-(d), (ii)-(a), (iii)-(b), (iv)-(c)
View solution
Correct Option: A
Diffusion—Rogers; TAM—Davis; Disruptive—Christensen; Open—Chesbrough.

89.12.1 Advanced Format Questions

AR 1Assertion-ReasonHard

A: Disruptive innovations often start in low-end markets.
R: Incumbents focus on profitable customers and miss disruption (Christensen 1997).

  • ABoth true; R explains A
  • BBoth true; R does not explain A
  • CA true, R false
  • DA false, R true
View solution
Correct Option: A
S 1Statement-basedMedium

Adopter categories (Rogers): (i) Innovators 2.5%. (ii) Early adopters 13.5%. (iii) Early majority 34%. (iv) Late majority 34%. (v) Laggards 16%.

  • AAll five
  • B(i), (ii), (iii) only
  • C(iv) and (v) only
  • D(iii) only
View solution
Correct Option: A
S 2Statement-basedHard

Change models: (i) Lewin (3 steps). (ii) Kotter (8 steps). (iii) ADKAR. (iv) Bridges Transition.

  • AAll four
  • B(i) and (ii) only
  • C(iii) and (iv) only
  • D(i), (ii), (iii) only
View solution
Correct Option: A

89.13 Quick Recall

ImportantQuick recall
  • Tech change — Schumpeter “creative destruction” (1942).
  • Diffusion (Rogers 1962): Innovators 2.5 · Early Adopters 13.5 · Early Majority 34 · Late Majority 34 · Laggards 16; attributes: RA, Compatibility, Complexity, Trialability, Observability.
  • Disruptive Innovation — Christensen (1997); sustaining vs disruptive (Kodak, Nokia, Netflix).
  • TAM (Davis 1989): PU + PEOU → Intention → Use; TAM2 (2000); UTAUT (Venkatesh 2003); UTAUT2 (2012).
  • Tech S-curve: Embryonic → Growth → Maturity → Decline.
  • Gartner Hype Cycle: Trigger → Peak → Trough → Slope → Plateau.
  • Change frameworks: Lewin (1947) Unfreeze-Change-Refreeze · Kotter 8 steps (1996) · ADKAR (Hiatt-Prosci) · Bridges · McKinsey 7S · Burke-Litwin.
  • Resistance — fear, skill, status, habit, misinfo, trust; overcome via Kotter-Schlesinger (1979).
  • Strategy: First mover · Fast follower · Late entrant; Build vs Buy vs Partner; Open Innovation (Chesbrough 2003); 70-20-10 (McKinsey).
  • India: Digital India 2015 · Atmanirbhar 2020 · Startup India 2016 · IndiaAI Mission 2024 · Semicon 2021 · National Quantum Mission 2023 · NM-ICPS · Bharatnet · 5G launch 2022 · DPI exports.
  • Modern: Gen-AI integration · cloud-native · composable · citizen developers · SAFe · bi-modal · tech debt · CoE · hackathons · WEF Future of Jobs · ESG-tech.