Disruptive Innovation Graded A+
Disruptive technologies have two characteristics
1. come to the market with a set of performance attributes that current customers don't value
2. over time, these attributes improve to the point where they invade established market
Found in many innovations t...
Disruptive Innovation Graded A+
Disruptive technologies have two characteristics
1. come to the market with a set of performance attributes that current customers don't value
2. over time, these attributes improve to the point where they invade established market
Found in many innovations that have brought about the shift from analog to digital, these changes all
are enabled by
fast/cheap technologies
Disruptive innovations don't need to perform better than imcumbents
they simply need to perform well enough to appeal to the customers of the incumbents, and often do so
at a lower price
Example of disruptive models
Zara, Uber
Kodak also innovated, but why isn't it "disruptive"?
e.g. they increased the battery life, more lenses options -- the innovation is targeted at the higher end of
the market.
Why do big firm fail corresponding to the first characteristic?
They are doing what they ought to do: listening to their customers and focusing on financial
performances. A lot of the time, they failed to see disruptive innovations as a threat because they don't
dedicate resources to developing these unattractive technology.
Why do big firm fail corresponding to the second characteristic?
Start-up amass expertise quickly and often benefit from increasing scale and growing customer base. Big
firms are forced to play catch-up.
Why does doing what they ought to do makes big firm blind and pressured?
- existing customers and market pressure: no one wants it
- financial performance measures: small market and small margins
How can big firms overcome failure?
- identifying technology
- managing an option portfolio of innovations
In terms of overcoming failure, what are the two ways big firm can identify technologies?
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