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)
– 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!
– 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
– Hybrid innovation (Christensen, Horn and Staker 2013)
What is in the way of the disruptor?
