Good morning,everyone.In the last few lectures I've been dealing with business finance,but now I'm going to move on to business systems.And in today's lecture I'm going to talk about what can go wrong when businesses try to copy their own best practices.
Once a business has successfully introduced a new process - managing a branch bank,say,or selling a new product - the parent organisation naturally wants to repeat that success,and not to generate new knowledge.It's a less glamorous activity than pure innovation,but it actually happens more often,as a matter of fact.However,surprisingly,getting things right the second time is not necessarily any simpler than it was the first time.
Now,there's been a lot of research into how companies can repeat their previous successes,and it certainly hasn't been confined to the United States.It seems that most large industries are trying to repeat their own successes,and manage the knowledge they've acquired - but even so it has been shown that the overwhelming majority of attempts fail.A host of studies confirm this,covering a wide range of business settings:branch banks,retail stores,real estate agencies,factories,call centres...to name but a few.
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