Posted in Marketing and Strategy Terms, Total Reads: 704
Definition: Paradigm Shift
A significant revolution in the way how some procedure is completed. A paradigm shift can transpire when new technology is introduced that radically changes the production process of a product. For example, the invention of assembly line at Ford Motors created a significant paradigm shift in the automobile industry as well as in other areas of manufacturing.
It is a change in the basic assumptions, or paradigms, within the ruling theory of science, according to Thomas Kuhn. It is driven by agents of change. Paradigm shift may require an entire department to be abolished or set up in different cases. A hefty sum of money may be required to invest in new machines, technology or to develop human capital while old instruments are sold off. The last century saw different paradigm shifts with the industrial revolution and scientific discoveries.
The financial services marketing is in need for paradigm shift due to lowering trust of consumers in financial institutions after global financial crisis. The paradigm shifts are expected to become more vivid and common with the rate of development of new technologies.