Degradation as a strategic innovative resource

Abstract

Purpose This study explores the intentional actions of degradation of products, services and organizational processes based on the recalled experiences of seasoned managers, aiming to discuss the level of diffusion, knowledge and relevance of this heuristic for organizations. Design/methodology/approach Experiences of the degradation of products, services and processes were documented through interviews with 20 experienced managers who work in large corporations. The information collected was analyzed using the content analysis technique and the Gioia methodology. Findings A set of attributes was identified that allow the correct identification of a degradation action, distinguishing it from other similar actions that also reduce the quality of products, services or processes, as in cases of frugalism and destruction. The analyses of degradation experiences indicated a set of strategic results, including for organizations that have products and services with low added value and little technological or non-digital input (closed systems). Practical implications From the discussions of the experiences analyzed, a set of important aspects to be observed by managers who intend to incorporate degradation into the list of innovative tactics of their organizations emerges. For example, the importance of highlighting the act of degradation is emphasized. This is not to punish bad customers, but to ensure the quality and value of products and services for all customers. Social implications Properly designed and implemented, the degradation tactic can be understood as an act of preserving a healthy environment for all customers. The experiences analyzed reported cases of preserving the quality of the digital platform, guaranteeing the flow of only information of interest (barring pollution or non-information). They also helped to limit acquisition or transaction costs due to the avoidance or recovery of losses associated with acts contrary to the interests of the community. Originality/value Contrary to the literature in the field of management, which views degradation as something exclusively negative, to be avoided and combated by managers, the analysis of field experiences highlights the great strategic potential of degradation heuristics, leading to positive results for both companies and society. Some cognitive biases of managers were identified and demystified, such as degradation only applying to services and products with high added value and those that make intensive use of modern digital technologies.