By Lavrentiy Pavlovich Beriya and Rodion Yacovlevich Malinovskiy

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When I multiply the probabilities for a successful introduction of technology (25%), extension of regulations (30%), product placement (50%)) and customer acceptance (25%) I am down to a probability of less than 1%. Russ: Well, it's simple then. We only have to find an innovative product that removes one of the risks, and that hopefully can pay for itself Sam: How about Dure-Car. We have been thinking about Dure-Car on and off, but never found a good reason to launch it. It will introduce the new technology in a simple form and does not need new regulations.

In both cases innovation has played a leading role in their success. What characterises disruptive environments? The rules for business success in a disruptive environment are different to those we were used to in the past. But how do we know when our environment is actually experiencing disruptive change? How do we know for sure exactly what is going on, before we set out to change what has served us successfully for a long time? The immediate answer is to observe carefully. There are indicators you need to pay attention to, for example: You may lose a market you thought you owned, and you cannot find the reason in the familiar competitive landscape.

The rest of the organisation lies dormant or paralysed. This flies directly in the face of the call for networked organisations, distributed processes and innovation. Leaders and followers have an equal part in the situation. Followers take fewer risks, because they fear punishment from the levels above. The top levels become convinced that only they can actually introduce change, because they see no action from the levels below. Increasingly, everything has to flow from the top. But in a networked and distributed environment, the top management has no means of actually knowing what's going on, if it is relying on hierarchically organised processes.

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34 Years Of The Soviet State by Lavrentiy Pavlovich Beriya and Rodion Yacovlevich Malinovskiy

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