w11Disrupting Business.docx - 1 What is technology \u2018The technology of a people is their means of adjusting to the environment\u2019(Pytlik Lauda and

w11Disrupting Business.docx - 1 What is technology...

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1.What is technology? 2.How does this matter to businesses? 3. The challenge of technological innovation: some theories – The multi-level model of technological transition (Geels 2002)
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– Trajectories of Industry Change (McGahan 2004) industries evolve along four distinct trajectories: radical , progressive , creative , and intermediating . These trajectories are defined by two types of threats: (外部淘汰,内部无法) new, outside alternatives threaten to weaken or make obsolete core activities. an industry's core assets fail to generate value as they once did. Why is this important? – The four trajectories set the boundaries on what will generate profits in a business . – Many organizations invest in innovations yet find that these never pay off (a case of ahead of their time or behind their time). – If your company's innovation strategy is not aligned with your industry's change trajectory , your investments cannot succeed. – Goal: pursue innovation that is consistent with the direction of change in the industry!
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– Disruptive innovation vs. sustaining innovation (Bower & Christensen 1995) – Describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market , eventually displacing established competitors – ‘disruptive technologies introduce a very different package of attributes from the one mainstream customers historically value’ (Bower and Christensen 1995, p. 45) – typical characteristics: simplicity, convenience, accessibility, and affordability Key assumptions of the theory of DI: - existing incumbents with sustaining innovation; - incumbents overshoot customer needs; - although they retain the capability to respond to the disruption; - they flounder as a result of the disruption. What is sustaining innovation? – maintains a rate of product improvement, offering customers something more or better in the attributes they already value; – a result of companies’ tendency to innovate faster than their customers’ needs evolve; – typically requires higher cost structures; – by charging very high prices at the top of the market, companies achieve the greatest profitability
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– Hybrid innovation (Christensen, Horn and Staker 2013) What is in the way of the disruptor?
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