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MIS- Disruptive Innovations and their Impact on the Manager

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MIS- Disruptive Innovations and their Impact on the Manager As technology advances new industries, business models, and products will be created, and established firms and ways of doing business will be destroyed The Innovator's Dilemma" Clayton Christensen - conflict of enhancement of or...

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  • September 25, 2024
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  • 2024/2025
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MIS- Disruptive Innovations and their Impact on the Manager
As technology advances

new industries, business models, and products will be created, and established firms and ways of doing
business will be destroyed

The Innovator's Dilemma"

Clayton Christensen - conflict of enhancement of original product and improve margins OR creation of
new product to enter a new market with the risk of the product failing
• Disruptive Innovation creates new market that will disrupt existing market, destroying another
product/market
• Urges managers to look into future with lens of this dilemma



How to deal with Disruptive Industry

1. Treat the project as a separate unit
2. Segment customers by job rather than product
3. Develop low cost solution

Disruptive Technology

(coined by Christensen) comes from the idea that every company is trying to improve their products

Sustaining technology

Normal way to improve their products: take current product and improve on it/ create new product that
goes with it
o Trying to keep your used technology/product up to date with current demands

Disruptive Innovation

innovation that helps create a new market and value network
• Eventually disrupts existing market and value network , displacing earlier technology

Innovator's Dilemma

- should I invest in
(1) upgrading current products or
(2) invest in technology that might cannibalize my currently successful product?

Caused by putting too much emphasis on current customer's needs (and profits) and working to sustain
current business model, and not seeing other technology as a long term threat.

Why do businesses fail to see disruptive innovations as a threat?

Reason: They do not dedicate resources to developing the potential technology since these markets do
not look attractive.

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