SlideShare a Scribd company logo
1 of 57
Disruptive Technologies
Christian Sandström holds a PhD from Chalmers
University of Technology, Sweden. He writes and speaks
 about disruptive innovation and technological change.
Ever since Clayton
     Christensen
 published his book
   ’The innovator’s
 dilemma’ in 1997 its
    popularity has
increased every year.
The book has had a profound impact
   on how both practitioners and
scholars think about innovation and
       technological change.
This presentation will give a brief
introduction to the main idea of the book.
In his book, Christensen sought to
  explain why great firms fail under
conditions of technological change.
While there are many explanations of such
failure, Christensen brought an intriguingly
    different perspective upon this issue.
Previous work in this area had primarily
looked at how a new technology impacts the
       companies existing R&D skills.
For instance, a shift from mechanics to electronics
     in an industry would render the mechanical
      competence of established firms obsolete.
However, those perspectives could not
explain what happened in the disk drive
 industry, which Christensen studied
       during is PhD at Harvard.
In this industry, established firms
managed to renew their competence
         base, yet still failed.
Just take a look at what happened in
each shift from one generation of disk
        drives to another one:
8-inch generation
    Year        1976   1978   1980
Entrant firms    1      4      6

Established      0      2      5
   firms




                                     (Source: Christensen, 1997)
8-inch generation
    Year        1976   1978   1980
Entrant firms    1      4      6

Established      0      2      5
   firms




                                     (Source: Christensen, 1997)
8-inch generation                    5.25-inch generation
    Year        1976   1978   1980      Year       1980    1981    1982

Entrant firms    1      4      6       Entrant       1       8       8
                                        firms
Established      0      2      5     Established     1       2       8
   firms                                firms




                                                   (Source: Christensen, 1997)
8-inch generation                    5.25-inch generation
    Year        1976   1978   1980      Year        1980    1981    1982

Entrant firms    1      4      6       Entrant        1       8       8
                                        firms
Established      0      2      5     Established     1        2       8
   firms                                firms




                                                   (Source: Christensen, 1997)
8-inch generation                        5.25-inch generation
    Year         1976     1978    1980      Year        1980    1981    1982

Entrant firms        1        4     6      Entrant        1       8       8
                                            firms
 Established         0        2     5    Established     1        2       8
    firms                                   firms



     3.5-inch generation
   Year         1983     1984     1985

  Entrant        1        2        3
   firms
Established      0        1        1
   firms


                                                       (Source: Christensen, 1997)
8-inch generation                        5.25-inch generation
    Year         1976     1978    1980      Year        1980    1981    1982

Entrant firms        1        4     6      Entrant        1       8       8
                                            firms
 Established         0        2     5    Established     1        2       8
    firms                                   firms



     3.5-inch generation
   Year         1983     1984     1985

  Entrant        1        2        3
   firms
Established      0        1        1
   firms


                                                       (Source: Christensen, 1997)
8-inch generation                        5.25-inch generation
    Year         1976     1978    1980      Year        1980    1981    1982

Entrant firms        1        4     6      Entrant        1       8       8
                                            firms
 Established         0        2     5    Established     1        2       8
    firms                                   firms



     3.5-inch generation                           1.8-inch generation
   Year         1983     1984     1985      Year        1991    1992    1993

  Entrant        1        2        3       Entrant        1       3       3
   firms                                    firms
Established      0        1        1     Established     0        0       3
   firms                                    firms


                                                       (Source: Christensen, 1997)
In total, one established firm managed
the transition from one generation of disk
            drives to the next one!
And these shifts did not destroy the existing
  competence base of the incumbent firms.
Why then, did those firms fail?
Christensen’s answer:
Because they listened to their customers!
Each of the new generations of disk drives
offered a worse performance in terms of what
       existing customers demanded.
Customers wanted a better storage
capacity - and a smaller disk drive
   initially offered less storage.
Therefore, the established firms could
not find any financial logic in entering the
             next generation.
Later on, the smaller generation would reach
   ’good enough’ performance levels and
consequently displace the former generation.
It looked like this:
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Technology supply and demand in the
  10000
           HDD industry

                           1000
 Hard Disk Capacity (MB)




                            100




                            10


                             1
                                  1975   1980          1985   1990
                                                Year          (Source: Christensen, 1997)
Companies went bankrupt by listening to
 their customers and giving them what
            they demanded.
Disruptive Technologies - an introduction
The new generations of disk drive
emerged in a new value network – in low
end segments or in entirely new markets.
The fact that the new generation had a
worse storage capacity but offered new
performance attributes implied that they
     prospered in new applications.
Eventually, the products became ’good
enough’ in terms of storage capacity and
  then displaced the former generation.
Therefore, Christensen argued
that one must look at whether
 innovations satisfy a firm’s
current customer base or not.
Sustaining innovations are those
 which mainstream customers
            demand.
Sustaining innovations are those
 which mainstream customers
            demand.

Those innovations which do not
 satisfy current customers are
    regarded as disruptive.
The disruptive innovation has:
The disruptive innovation has:
Lower performance according to
  what mainstream customers
             want.
The disruptive innovation has:
Lower performance according to
  what mainstream customers
             want.
  Other performance attributes
(smaller, simpler), which are not
valued by current customers that
 makes it prosper in a new value
            network.
Companies are
 therefore ’held
captive’ by their
 most profitable
  customers –
  who impose a
  great indirect
  control of the
    resource
    allocation
 process inside
     the firm.
If you throw a stick into the field, you haven’t forced
    the dog to go and get it, but it would still do so.
You are fact in power, because you have something
                  that the dog wants.
In the same way, existing customers influence what
     firms decide to do because they provide the
          company with profitable revenues.
This mechanism helps us to understand how
     companies may be misguided when
     listening to their current customers.
Sources


Christensen, C.M. (1997) The Innovator’s
  Dilemma, Harvard Business School
  Press, Cambridge, Massachusetts.
Image attributions
Find out more:

www.disruptiveinnovation.se

More Related Content

What's hot

Digital Transformation Strategy Template and Training
Digital Transformation Strategy Template and TrainingDigital Transformation Strategy Template and Training
Digital Transformation Strategy Template and TrainingAurelien Domont, MBA
 
Corporate Innovation & Digital Transformation: Innovation Portfolio
Corporate Innovation & Digital Transformation: Innovation PortfolioCorporate Innovation & Digital Transformation: Innovation Portfolio
Corporate Innovation & Digital Transformation: Innovation PortfolioJohnny Ordóñez
 
Disruptive Innovation-What Fuels it?
Disruptive Innovation-What Fuels it?Disruptive Innovation-What Fuels it?
Disruptive Innovation-What Fuels it?Rohit Singh
 
The innovator's dilemma
The innovator's dilemmaThe innovator's dilemma
The innovator's dilemmaWei Li
 
Henry Chesbrough - Open Innovation Seminar 2009 - Brazil
Henry Chesbrough - Open Innovation Seminar 2009 - BrazilHenry Chesbrough - Open Innovation Seminar 2009 - Brazil
Henry Chesbrough - Open Innovation Seminar 2009 - BrazilAllagi Open Innovation Services
 
Which Innovation Framework do you use, the 10 types of innovation or the busi...
Which Innovation Framework do you use, the 10 types of innovation or the busi...Which Innovation Framework do you use, the 10 types of innovation or the busi...
Which Innovation Framework do you use, the 10 types of innovation or the busi...Heather McQuaid
 
26 Disruptive & Technology Trends 2016 - 2018
26 Disruptive & Technology Trends 2016 - 201826 Disruptive & Technology Trends 2016 - 2018
26 Disruptive & Technology Trends 2016 - 2018Brian Solis
 
How IBM does Innovation
How IBM does InnovationHow IBM does Innovation
How IBM does Innovationcifs
 
Disruptive Innovation - Africa Study
Disruptive Innovation - Africa StudyDisruptive Innovation - Africa Study
Disruptive Innovation - Africa StudyArnold Sawe
 
Defining Innovation Types.
Defining Innovation Types.Defining Innovation Types.
Defining Innovation Types.Dr. Marc Sniukas
 
Crossing The Chasm
Crossing The ChasmCrossing The Chasm
Crossing The ChasmAndre Kearns
 
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...Stefan Lindegaard
 
Understand Innovation in 5 Minutes
Understand Innovation in 5 MinutesUnderstand Innovation in 5 Minutes
Understand Innovation in 5 MinutesGordon Graham
 
2018: What did I learn about Innovation and Entrepreneurship in Israel
2018: What did I learn about Innovation and Entrepreneurship in Israel2018: What did I learn about Innovation and Entrepreneurship in Israel
2018: What did I learn about Innovation and Entrepreneurship in IsraelLeandro de Castro
 
Sit method
Sit methodSit method
Sit methodumashdon
 

What's hot (20)

Digital Transformation Strategy Template and Training
Digital Transformation Strategy Template and TrainingDigital Transformation Strategy Template and Training
Digital Transformation Strategy Template and Training
 
Corporate Innovation & Digital Transformation: Innovation Portfolio
Corporate Innovation & Digital Transformation: Innovation PortfolioCorporate Innovation & Digital Transformation: Innovation Portfolio
Corporate Innovation & Digital Transformation: Innovation Portfolio
 
Disruptive Innovation-What Fuels it?
Disruptive Innovation-What Fuels it?Disruptive Innovation-What Fuels it?
Disruptive Innovation-What Fuels it?
 
The innovator's dilemma
The innovator's dilemmaThe innovator's dilemma
The innovator's dilemma
 
Henry Chesbrough - Open Innovation Seminar 2009 - Brazil
Henry Chesbrough - Open Innovation Seminar 2009 - BrazilHenry Chesbrough - Open Innovation Seminar 2009 - Brazil
Henry Chesbrough - Open Innovation Seminar 2009 - Brazil
 
Innovation
Innovation Innovation
Innovation
 
Which Innovation Framework do you use, the 10 types of innovation or the busi...
Which Innovation Framework do you use, the 10 types of innovation or the busi...Which Innovation Framework do you use, the 10 types of innovation or the busi...
Which Innovation Framework do you use, the 10 types of innovation or the busi...
 
26 Disruptive & Technology Trends 2016 - 2018
26 Disruptive & Technology Trends 2016 - 201826 Disruptive & Technology Trends 2016 - 2018
26 Disruptive & Technology Trends 2016 - 2018
 
Disruptive Innovation
Disruptive InnovationDisruptive Innovation
Disruptive Innovation
 
How IBM does Innovation
How IBM does InnovationHow IBM does Innovation
How IBM does Innovation
 
Disruptive Innovation - Africa Study
Disruptive Innovation - Africa StudyDisruptive Innovation - Africa Study
Disruptive Innovation - Africa Study
 
Defining Innovation Types.
Defining Innovation Types.Defining Innovation Types.
Defining Innovation Types.
 
Open innovation: Past, Present and Future Aspects
Open innovation: Past, Present and Future Aspects Open innovation: Past, Present and Future Aspects
Open innovation: Past, Present and Future Aspects
 
Crossing The Chasm
Crossing The ChasmCrossing The Chasm
Crossing The Chasm
 
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...
7 Steps for Open Innovation by @Lindegaard: Grading Your Company’s Open Innov...
 
Understand Innovation in 5 Minutes
Understand Innovation in 5 MinutesUnderstand Innovation in 5 Minutes
Understand Innovation in 5 Minutes
 
2018: What did I learn about Innovation and Entrepreneurship in Israel
2018: What did I learn about Innovation and Entrepreneurship in Israel2018: What did I learn about Innovation and Entrepreneurship in Israel
2018: What did I learn about Innovation and Entrepreneurship in Israel
 
Disruptive innovation
Disruptive innovationDisruptive innovation
Disruptive innovation
 
Sit method
Sit methodSit method
Sit method
 
Disruptive Technologies
Disruptive TechnologiesDisruptive Technologies
Disruptive Technologies
 

Viewers also liked

Disruptive Innovation in 2016
Disruptive Innovation in 2016Disruptive Innovation in 2016
Disruptive Innovation in 2016Jeremy Waite
 
10 disruptive innovation
10 disruptive innovation10 disruptive innovation
10 disruptive innovationWesley Shu
 
25 Disruptive Technology Trends 2015 - 2016
25 Disruptive Technology Trends 2015 - 201625 Disruptive Technology Trends 2015 - 2016
25 Disruptive Technology Trends 2015 - 2016Brian Solis
 
What is disruptive innovation?
What is disruptive innovation?What is disruptive innovation?
What is disruptive innovation?Nei Grando
 
Basic introduction to SOA
Basic introduction to SOABasic introduction to SOA
Basic introduction to SOAJoaquin Rincon
 
Enterprise Application Integration
Enterprise Application IntegrationEnterprise Application Integration
Enterprise Application IntegrationComputing Cage
 
SOA & ESB Presentation
SOA & ESB PresentationSOA & ESB Presentation
SOA & ESB Presentationerichleipold
 
Service Oriented Architecture
Service Oriented ArchitectureService Oriented Architecture
Service Oriented ArchitectureRobert Sim
 
Enterprise Application Integration Technologies
Enterprise Application Integration TechnologiesEnterprise Application Integration Technologies
Enterprise Application Integration TechnologiesPeter R. Egli
 
Enterprise application integration
Enterprise application integrationEnterprise application integration
Enterprise application integrationGoa App
 
Hi Tech Industry
Hi  Tech IndustryHi  Tech Industry
Hi Tech Industrytudorgeog
 
Innovation Technopark "Idea"
Innovation Technopark "Idea"Innovation Technopark "Idea"
Innovation Technopark "Idea"Derrick Staten
 
Technoparks: Scientific and Technological Platform for a Better Dissemination...
Technoparks: Scientific and Technological Platform for a Better Dissemination...Technoparks: Scientific and Technological Platform for a Better Dissemination...
Technoparks: Scientific and Technological Platform for a Better Dissemination...UNESCO Venice Office
 
Disruptive Technology - Why large companies often fail to innovate
Disruptive Technology - Why large companies often fail to innovateDisruptive Technology - Why large companies often fail to innovate
Disruptive Technology - Why large companies often fail to innovateNorman Hiob
 
Mergers & Acquisitions in High Tech Industry
Mergers & Acquisitions in High Tech IndustryMergers & Acquisitions in High Tech Industry
Mergers & Acquisitions in High Tech IndustryAbhishek Breja
 
High Tech industry
High Tech industry High Tech industry
High Tech industry Consultant
 

Viewers also liked (20)

Disruptive Innovation in 2016
Disruptive Innovation in 2016Disruptive Innovation in 2016
Disruptive Innovation in 2016
 
10 disruptive innovation
10 disruptive innovation10 disruptive innovation
10 disruptive innovation
 
25 Disruptive Technology Trends 2015 - 2016
25 Disruptive Technology Trends 2015 - 201625 Disruptive Technology Trends 2015 - 2016
25 Disruptive Technology Trends 2015 - 2016
 
Disruptive innovation
Disruptive innovationDisruptive innovation
Disruptive innovation
 
What is disruptive innovation?
What is disruptive innovation?What is disruptive innovation?
What is disruptive innovation?
 
Basic introduction to SOA
Basic introduction to SOABasic introduction to SOA
Basic introduction to SOA
 
Enterprise Application Integration
Enterprise Application IntegrationEnterprise Application Integration
Enterprise Application Integration
 
SOA & ESB Presentation
SOA & ESB PresentationSOA & ESB Presentation
SOA & ESB Presentation
 
EAI example
EAI exampleEAI example
EAI example
 
Service Oriented Architecture
Service Oriented ArchitectureService Oriented Architecture
Service Oriented Architecture
 
Enterprise Application Integration Technologies
Enterprise Application Integration TechnologiesEnterprise Application Integration Technologies
Enterprise Application Integration Technologies
 
Enterprise application integration
Enterprise application integrationEnterprise application integration
Enterprise application integration
 
Nano technology
Nano technologyNano technology
Nano technology
 
Hi Tech Industry
Hi  Tech IndustryHi  Tech Industry
Hi Tech Industry
 
Innovation Technopark "Idea"
Innovation Technopark "Idea"Innovation Technopark "Idea"
Innovation Technopark "Idea"
 
Technoparks: Scientific and Technological Platform for a Better Dissemination...
Technoparks: Scientific and Technological Platform for a Better Dissemination...Technoparks: Scientific and Technological Platform for a Better Dissemination...
Technoparks: Scientific and Technological Platform for a Better Dissemination...
 
Disruptive Technology - Why large companies often fail to innovate
Disruptive Technology - Why large companies often fail to innovateDisruptive Technology - Why large companies often fail to innovate
Disruptive Technology - Why large companies often fail to innovate
 
Mergers & Acquisitions in High Tech Industry
Mergers & Acquisitions in High Tech IndustryMergers & Acquisitions in High Tech Industry
Mergers & Acquisitions in High Tech Industry
 
Industry and university cooperation
Industry and university cooperationIndustry and university cooperation
Industry and university cooperation
 
High Tech industry
High Tech industry High Tech industry
High Tech industry
 

More from Chris Sandström

Smartphones and Nokia's decline
Smartphones and Nokia's declineSmartphones and Nokia's decline
Smartphones and Nokia's declineChris Sandström
 
Disruptive innovation, smartphones and the decline of Nokia
Disruptive innovation, smartphones and the decline of NokiaDisruptive innovation, smartphones and the decline of Nokia
Disruptive innovation, smartphones and the decline of NokiaChris Sandström
 
Technology sailing effects
Technology sailing effectsTechnology sailing effects
Technology sailing effectsChris Sandström
 
Electronics and the swiss watch industry
Electronics and the swiss watch industryElectronics and the swiss watch industry
Electronics and the swiss watch industryChris Sandström
 
Ph d dissertation christian sandström
Ph d dissertation christian sandströmPh d dissertation christian sandström
Ph d dissertation christian sandströmChris Sandström
 
Is IP Video a Disruptive Technology?
Is IP Video a Disruptive Technology?Is IP Video a Disruptive Technology?
Is IP Video a Disruptive Technology?Chris Sandström
 
Schumpeter and the Creative Destruction of Photography
Schumpeter and the Creative Destruction of PhotographySchumpeter and the Creative Destruction of Photography
Schumpeter and the Creative Destruction of PhotographyChris Sandström
 
Robert Noyce Quotes On Leadership And Innovation
Robert Noyce Quotes On Leadership And InnovationRobert Noyce Quotes On Leadership And Innovation
Robert Noyce Quotes On Leadership And InnovationChris Sandström
 
Hasselblad and the End of Compatibility
Hasselblad and the End of CompatibilityHasselblad and the End of Compatibility
Hasselblad and the End of CompatibilityChris Sandström
 
Pelco Surveillance in Trouble
Pelco Surveillance in TroublePelco Surveillance in Trouble
Pelco Surveillance in TroubleChris Sandström
 
(In Swedish) Årets julklapp 1990-2009
(In Swedish) Årets julklapp 1990-2009(In Swedish) Årets julklapp 1990-2009
(In Swedish) Årets julklapp 1990-2009Chris Sandström
 
Medium Format Photography in decline
Medium Format Photography in declineMedium Format Photography in decline
Medium Format Photography in declineChris Sandström
 
Roxette And The Digital Joyride
Roxette And The Digital JoyrideRoxette And The Digital Joyride
Roxette And The Digital JoyrideChris Sandström
 
Kodak Humor and Digital Imaging
Kodak Humor and Digital ImagingKodak Humor and Digital Imaging
Kodak Humor and Digital ImagingChris Sandström
 
Kodak, Bureaucracy and Digital Imaging
Kodak, Bureaucracy and Digital ImagingKodak, Bureaucracy and Digital Imaging
Kodak, Bureaucracy and Digital ImagingChris Sandström
 
Kodak and the Digital Destruction of Value Chains
Kodak and the Digital Destruction of Value ChainsKodak and the Digital Destruction of Value Chains
Kodak and the Digital Destruction of Value ChainsChris Sandström
 

More from Chris Sandström (20)

Smartphones and Nokia's decline
Smartphones and Nokia's declineSmartphones and Nokia's decline
Smartphones and Nokia's decline
 
Disruptive innovation, smartphones and the decline of Nokia
Disruptive innovation, smartphones and the decline of NokiaDisruptive innovation, smartphones and the decline of Nokia
Disruptive innovation, smartphones and the decline of Nokia
 
Technology overshooting
Technology overshootingTechnology overshooting
Technology overshooting
 
Technology sailing effects
Technology sailing effectsTechnology sailing effects
Technology sailing effects
 
Technology S-curves
Technology S-curvesTechnology S-curves
Technology S-curves
 
The great calculator war
The great calculator warThe great calculator war
The great calculator war
 
Electronics and the swiss watch industry
Electronics and the swiss watch industryElectronics and the swiss watch industry
Electronics and the swiss watch industry
 
Ph d dissertation christian sandström
Ph d dissertation christian sandströmPh d dissertation christian sandström
Ph d dissertation christian sandström
 
Is IP Video a Disruptive Technology?
Is IP Video a Disruptive Technology?Is IP Video a Disruptive Technology?
Is IP Video a Disruptive Technology?
 
Schumpeter and the Creative Destruction of Photography
Schumpeter and the Creative Destruction of PhotographySchumpeter and the Creative Destruction of Photography
Schumpeter and the Creative Destruction of Photography
 
Robert Noyce Quotes On Leadership And Innovation
Robert Noyce Quotes On Leadership And InnovationRobert Noyce Quotes On Leadership And Innovation
Robert Noyce Quotes On Leadership And Innovation
 
Hasselblad and the End of Compatibility
Hasselblad and the End of CompatibilityHasselblad and the End of Compatibility
Hasselblad and the End of Compatibility
 
Pelco Surveillance in Trouble
Pelco Surveillance in TroublePelco Surveillance in Trouble
Pelco Surveillance in Trouble
 
(In Swedish) Årets julklapp 1990-2009
(In Swedish) Årets julklapp 1990-2009(In Swedish) Årets julklapp 1990-2009
(In Swedish) Årets julklapp 1990-2009
 
Medium Format Photography in decline
Medium Format Photography in declineMedium Format Photography in decline
Medium Format Photography in decline
 
Roxette And The Digital Joyride
Roxette And The Digital JoyrideRoxette And The Digital Joyride
Roxette And The Digital Joyride
 
Kodak Humor and Digital Imaging
Kodak Humor and Digital ImagingKodak Humor and Digital Imaging
Kodak Humor and Digital Imaging
 
Kodak, Bureaucracy and Digital Imaging
Kodak, Bureaucracy and Digital ImagingKodak, Bureaucracy and Digital Imaging
Kodak, Bureaucracy and Digital Imaging
 
Kodak Bottleneck
Kodak BottleneckKodak Bottleneck
Kodak Bottleneck
 
Kodak and the Digital Destruction of Value Chains
Kodak and the Digital Destruction of Value ChainsKodak and the Digital Destruction of Value Chains
Kodak and the Digital Destruction of Value Chains
 

Recently uploaded

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfHajeJanKamps
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfCharles Cotter, PhD
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toumarfarooquejamali32
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003believeminhh
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZKanakChauhan5
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfSourav Sikder
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGlokeshwarmaha
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakEditores1
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsP&CO
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhangmcgroupjeya
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHelene Heckrotte
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 

Recently uploaded (20)

Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
PDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdfPDT 88 - 4 million seed - Seed - Protecto.pdf
PDT 88 - 4 million seed - Seed - Protecto.pdf
 
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdfTalent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
Talent Management research intelligence_13 paradigm shifts_20 March 2024.pdf
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
Lecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb toLecture_6.pptx English speaking easyb to
Lecture_6.pptx English speaking easyb to
 
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
The Vietnam Believer Newsletter_MARCH 25, 2024_EN_Vol. 003
 
Mihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZMihir Menda - Member of Supervisory Board at RMZ
Mihir Menda - Member of Supervisory Board at RMZ
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdfChicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
Chicago Medical Malpractice Lawyer Chicago Medical Malpractice Lawyer.pdf
 
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISINGUNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
UNLEASHING THE POWER OF PROGRAMMATIC ADVERTISING
 
Tata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerakTata Kelola Bisnis perushaan yang bergerak
Tata Kelola Bisnis perushaan yang bergerak
 
Entrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizationsEntrepreneurship & organisations: influences and organizations
Entrepreneurship & organisations: influences and organizations
 
MC Heights construction company in Jhang
MC Heights construction company in JhangMC Heights construction company in Jhang
MC Heights construction company in Jhang
 
Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024Borderless Access - Global Panel book-unlock 2024
Borderless Access - Global Panel book-unlock 2024
 
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptxHELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
HELENE HECKROTTE'S PROFESSIONAL PORTFOLIO.pptx
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 

Disruptive Technologies - an introduction

  • 2. Christian Sandström holds a PhD from Chalmers University of Technology, Sweden. He writes and speaks about disruptive innovation and technological change.
  • 3. Ever since Clayton Christensen published his book ’The innovator’s dilemma’ in 1997 its popularity has increased every year.
  • 4. The book has had a profound impact on how both practitioners and scholars think about innovation and technological change.
  • 5. This presentation will give a brief introduction to the main idea of the book.
  • 6. In his book, Christensen sought to explain why great firms fail under conditions of technological change.
  • 7. While there are many explanations of such failure, Christensen brought an intriguingly different perspective upon this issue.
  • 8. Previous work in this area had primarily looked at how a new technology impacts the companies existing R&D skills.
  • 9. For instance, a shift from mechanics to electronics in an industry would render the mechanical competence of established firms obsolete.
  • 10. However, those perspectives could not explain what happened in the disk drive industry, which Christensen studied during is PhD at Harvard.
  • 11. In this industry, established firms managed to renew their competence base, yet still failed.
  • 12. Just take a look at what happened in each shift from one generation of disk drives to another one:
  • 13. 8-inch generation Year 1976 1978 1980 Entrant firms 1 4 6 Established 0 2 5 firms (Source: Christensen, 1997)
  • 14. 8-inch generation Year 1976 1978 1980 Entrant firms 1 4 6 Established 0 2 5 firms (Source: Christensen, 1997)
  • 15. 8-inch generation 5.25-inch generation Year 1976 1978 1980 Year 1980 1981 1982 Entrant firms 1 4 6 Entrant 1 8 8 firms Established 0 2 5 Established 1 2 8 firms firms (Source: Christensen, 1997)
  • 16. 8-inch generation 5.25-inch generation Year 1976 1978 1980 Year 1980 1981 1982 Entrant firms 1 4 6 Entrant 1 8 8 firms Established 0 2 5 Established 1 2 8 firms firms (Source: Christensen, 1997)
  • 17. 8-inch generation 5.25-inch generation Year 1976 1978 1980 Year 1980 1981 1982 Entrant firms 1 4 6 Entrant 1 8 8 firms Established 0 2 5 Established 1 2 8 firms firms 3.5-inch generation Year 1983 1984 1985 Entrant 1 2 3 firms Established 0 1 1 firms (Source: Christensen, 1997)
  • 18. 8-inch generation 5.25-inch generation Year 1976 1978 1980 Year 1980 1981 1982 Entrant firms 1 4 6 Entrant 1 8 8 firms Established 0 2 5 Established 1 2 8 firms firms 3.5-inch generation Year 1983 1984 1985 Entrant 1 2 3 firms Established 0 1 1 firms (Source: Christensen, 1997)
  • 19. 8-inch generation 5.25-inch generation Year 1976 1978 1980 Year 1980 1981 1982 Entrant firms 1 4 6 Entrant 1 8 8 firms Established 0 2 5 Established 1 2 8 firms firms 3.5-inch generation 1.8-inch generation Year 1983 1984 1985 Year 1991 1992 1993 Entrant 1 2 3 Entrant 1 3 3 firms firms Established 0 1 1 Established 0 0 3 firms firms (Source: Christensen, 1997)
  • 20. In total, one established firm managed the transition from one generation of disk drives to the next one!
  • 21. And these shifts did not destroy the existing competence base of the incumbent firms.
  • 22. Why then, did those firms fail?
  • 23. Christensen’s answer: Because they listened to their customers!
  • 24. Each of the new generations of disk drives offered a worse performance in terms of what existing customers demanded.
  • 25. Customers wanted a better storage capacity - and a smaller disk drive initially offered less storage.
  • 26. Therefore, the established firms could not find any financial logic in entering the next generation.
  • 27. Later on, the smaller generation would reach ’good enough’ performance levels and consequently displace the former generation.
  • 28. It looked like this:
  • 29. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 30. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 31. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 32. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 33. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 34. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 35. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 36. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 37. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 38. Technology supply and demand in the 10000 HDD industry 1000 Hard Disk Capacity (MB) 100 10 1 1975 1980 1985 1990 Year (Source: Christensen, 1997)
  • 39. Companies went bankrupt by listening to their customers and giving them what they demanded.
  • 41. The new generations of disk drive emerged in a new value network – in low end segments or in entirely new markets.
  • 42. The fact that the new generation had a worse storage capacity but offered new performance attributes implied that they prospered in new applications.
  • 43. Eventually, the products became ’good enough’ in terms of storage capacity and then displaced the former generation.
  • 44. Therefore, Christensen argued that one must look at whether innovations satisfy a firm’s current customer base or not.
  • 45. Sustaining innovations are those which mainstream customers demand.
  • 46. Sustaining innovations are those which mainstream customers demand. Those innovations which do not satisfy current customers are regarded as disruptive.
  • 48. The disruptive innovation has: Lower performance according to what mainstream customers want.
  • 49. The disruptive innovation has: Lower performance according to what mainstream customers want. Other performance attributes (smaller, simpler), which are not valued by current customers that makes it prosper in a new value network.
  • 50. Companies are therefore ’held captive’ by their most profitable customers – who impose a great indirect control of the resource allocation process inside the firm.
  • 51. If you throw a stick into the field, you haven’t forced the dog to go and get it, but it would still do so.
  • 52. You are fact in power, because you have something that the dog wants.
  • 53. In the same way, existing customers influence what firms decide to do because they provide the company with profitable revenues.
  • 54. This mechanism helps us to understand how companies may be misguided when listening to their current customers.
  • 55. Sources Christensen, C.M. (1997) The Innovator’s Dilemma, Harvard Business School Press, Cambridge, Massachusetts.