Analysis of MHS's Capacity for Disruptive Innovation Strategies

This presentation analyzes MHS's capacity and capability for adapting disruptive innovation. It begins with an introduction to disruptive innovation and its influencing factors, followed by detailed examinations of internal, external, marketing, and technological perspectives. The internal perspective...Read More

DYNAMIC
STRATEGY AND
DISRUPTIVE
INNOVATION
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Table of Contents
 Introduction
 Internal Perspectives
 External Perspectives
 Marketing Perspectives
 Technological Perspectives
 Conclusion
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INTRODUCTION
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 Disruptive Innovation can be defined as the technology and its
application can significantly bring influences and effects the
way how industry or marketer functions.
 There are various factors that influences and effects the
organisation's innovation capacity and capability.
 In this presentation, analysis is done on the MHS's capacity
and capability for adapting disruptive innovation.
 The report will research and analyse about the internal,
external, technological and marketing perspective in details.

Internal Perspective
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 Disruptive Innovation can be referred as the introduction of new
products or services into established company which performs better
and at a lower cost as compared with other existing offerings.
 And thereby, displacing market leaders in specific market space and
transforms the particular industry. The internal structure and culture of
organisation acts as a focal point of discussions related to the
innovation.
 There are various factors available in the internal business environment
which can affect and influence the organisation's innovation capacity.
 It includes values, culture, resources, employees and processes of
organisation.

To be Continued…
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 According to the Christensen's disruptive innovation theory,
organisational culture manifests it as the RPP, i.e. Resources, Processes
and Priorities.
 This refers that organisational culture is made of these things.
 The managerial structure of MHS is top-down that refers all decisions
are made by General Manager and senior executive team of every
business unit.
 And then these are filtered down to lower levels of the hierarchy.

To be Continued..
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 The culture of MHS is focused in such a way that they believe that
senior executives needs to come up through ranks.
 Thus, many top executives of MHS worked for an extended period and
mostly also worked within one business unit.
 This is considered as the internal perspective of company for
implementing disruptive innovation.
 In the MHS organisation, experience is considered as the key criteria
regrading the promotions.
 Thus, it can be concluded that internal perspective and factors of MHS
provides the capacity for bringing disruptive innovation.

Recommendation
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 In order to have disruptive Innovation, organisation should
focus on setting the priorities on high. It then needs to focus on
aligning the resources consistently with such priorities and also
to establish effective processes. MHS focuses on consistently
providing dividend to its shareholders even in the time of low
profit years. The company also should aim at building better
relationship with shareholders so that dividends can be moved
towards high potential and long-term Research &
Development projects. Some business organisations spend so
much energy and time on various tools and content of change
and lose sight of actually important elements. In order to effect
the change or innovation which can allow them for thriving in
uncertainty, business needs to focus more on shifting mindsets
and leadership principles for cultivating the human
capabilities.

External Perspective
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As the Millennium Health Science is the company which is
developed and manufacture the dermatologically tested skin care products
to the market. This millennium health science has two business within it,
namely, Neutrino, which manufacture vitamins and Dermatech, which
produce advance skin care products.
To make innovation in their products and brings dynamic
changes in their strategies various factors affect its, innovative capacity
such as commitments and relationships, regulatory and economic condition
of country.

To be Continued..
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 Commitments and relationships affect the innovative capacity of the
Millennium health science and its both of the business to produce the
vitamins and advance skin care products.
 As the commitments with the external clients like doctors, beauticians,
pharmacist and many more, if these all are not committed with their
work regarding the products of the skin care. Then the company can
not do innovation in their products.
 If pharmacist denied selling its product in the market and if doctors
would not test the products in the clinic ad not give ideas and
ingredients that make the skin younger and flawless then the company
can not be able to do the innovation in their products that can be useful
for the customers.

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 Relationships with the doctors, beauticians and customers also affect
the innovation capacity of the millennium health science company.
 As the relationships with the doctors and customers is not good and
strong enough that affect the business and innovation.
 As customers will not purchase their products, then the company do
not get the idea about customers and their choice and need for the skin
care.
 Then the innovation capacity of the millennium healthy science would
not work according to the customers.

To be Continued..
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 Regulatory body also affect the innovation capability of the
millennium health science company and its both of the business.
 If the regulatory body of the country is not make such effective rules
and politicises for the health care and medical field the company can
not apply is all innovative strategies into reality to develop the al new
skin care range and vitamin supplements by the Dermatech and
Neutrino company.
 After some time regulatory body is change and then it brings new
policies along with them.
 If the company has make their plans and set the target to what change
they can do for the betterment of the customer's skin and provide them
the best vitamin supplements.

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 As the supplements all the chemical which is being used to make the
skin care products and vitamin supplements are little expensive.
 To produce and manufacture the skin care product become difficult if
the economic condition of the country is poor.
 Low and poor economic condition of the country will not be able to
provide the different resources and different ingredients that require
manufacturing the products.
 If millennium health care require any resource or the doctor or
beautician from the outside the country's boundary, to make innovation
implementation by the dermatech and Neutrino, then it affects the
innovation capacity of the millennium health science.

Recommendation
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In order to increase the innovative capacity by the millennium
health science, company can make good relationships with the external
clients, investors, doctors, beautician and many more that can help the
Dermatech and Neutrino to make innovation in their product of skin care.

Marketing Perspective
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Key marketing perspective like customer visit program,
empathic designs and lead user process. In this customer visit program
affect the innovation capacity of the millennium health science. If company
conduct the customer visit program by its marketing department and the
research and development department, then it will be effective for the
company to make innovation in their skin are range by having clear and
better understanding of skin problem of the different customers. And ten
hey can make improvement in their products and vitamin supplements.
This visiting program affect the innovation capacity of the millennium
health science by having the clear understanding of their skin type, need
and problem. And what they actually want from the any skin care product
manufacturing company. That affect and increase their capacity to make
innovation in their products.

To be Continued…
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As the empathic designs' customer centred approach in which
company produce the product by having in the place of other customers
feeling, what they want and how they feel about the product. This affect the
innovation capacity, and increase the innovation capacity by having the
customer's feeling in their mind toward skin care products and vitamin
supplements. In this way the millennium health science can have the better
understanding of the customers choice, need and want regarding their skin
problem and then on the basis of these, can make improvement and make
innovation effectively in their products that will help customers to reduce
their skin care problem and lack of vitamin in their body.

To be Continued…
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 Innovation capacity of the millennium health science company is also
affected by the lead user process.
 As this is the market research process in which all the market need, and
customers need are being searched in order to make innovation and
improvement in the products.
 R & D of the millennium health science make report on the searched
data about the medical market and customers skin problem and need
and according to this, capacity is affected.
 As the availability of resources is different from the market and
customer demand that the innovation capacity is affected.

Recommendation
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 From the marketing perspective, Millennium Health Science should
conduct the customer visit program in order to know the requirements
of the vitamin and different skin problem.
 And on the basis of this company can innovate their product range to
solve the problem of the customers.

Technology Perspective
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 The organisation's innovation capability and capacity can be defined
through the business process.
 Business process not only involves the manufacturing process but also
the ones through which development of product, product procurement,
marketing research, budgets, employee development, compensation
and also resource allocation can be achieved.
 In order to critique this, it can be said that when organisation employs
or designs processes for addressing one issues in order to tackle
various tasks.
 The organisation will manifest inefficient, slow and also bureaucratic
behaviour.

To be Continued…
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 The products and services of business organisation successfully creates
value as because of the employees as they focus on transforming input
resources into the final products and services having greater worth.
 The patterns of communication, co-ordination, interaction and
decision-making through which business accomplishes such
transformation are known as processes.

To be Continued…
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 The products of MHS are available on the counter.
 Doctors also recommend particular skin care products and vitamins for
patients. And in order to promote the products in more effective way,
skin care spas and clinics, and various specialized beauticians play a
major role.
 Thus, the marketing and promotional techniques of MHS are effective
and acts as a support to the implementation of disruptive innovation
within the business.

Recommendation
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 The MHS needs to establish processes in order to make employees
perform the recurrent task in consistent and effective way.
 The management should make sure that processes need not to be
changed so that it can achieve consistency.
 The business processes should be effectively aligned with the specific
tasks.

CONCLUSION
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From the above analysis, it can be concluded that in order to
implement disruptive innovation within the business, it needs to focus on
effectively analysing various important perspectives. The internal
capability, external factors, marketing and customer related factors and
also the technological elements are considered as the most important factor
for the disruptive innovation. The organisation's innovation capacity and
capability are based on these perspectives and factors. The presentation is
based on the MHS organisation that deals in dermatologically products. In
the presentation report, analysis and research is done on the various
disruptive innovation related concepts, scholarly views and theories.

REFERENCES
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 Carmel-Gilfilen, C. and Portillo, M., 2016. Designing with empathy:
humanizing narratives for inspired healthcare experiences. HERD:
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 Co-creation with customers: An evolving innovation research
field. Journal of Product Innovation Management. 32(5). pp.660-665.
 Lauritzen, G.D. and Karafyllia, M., 2019. Perspective: leveraging open
innovation through paradox. Journal of Product Innovation
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 McColl-Kennedy and et.al., 2017. Cocreative customer practices:
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