New Methods Of Managing And Communication

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Things change. New products are invented. New markets are created. New jobs are shaped. New methods of managing and communication are established and there are new norms, values, and regulations. But then again, old products disappeared, old jobs died out, old markets vanished, and many other old things are gone nowadays. This is because of creative destruction, a term coined by Joseph Schumpeter (1942). It refers to the transformation of industry practices.

However, transformation is not as easy as it may seem. There are many aspects that make such transformation very difficult to achieve. Uncertainty for the future for example, entrepreneurs might be hold back because the future state is unknown. Furthermore, there is inertia that lies in the psyche, which means that humans tend to resist things that are different and there is the fear of social sanctioning. Additionally, markets need to be ready for a change, ideas need to be legitimized and external developments play a significant role in realizing creative destruction as well. Entrepreneurs need to understand how to see beyond these barriers in order to create the foundation for radical change. In this essay all processes of creative destruction will be discussed and within every process the difficulties of transformation will be explained. Relevant examples, such as Jon Bannenberg’s new superyacht design, will be used to underline the explanations.

First, the term creative destruction will be
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