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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)
– 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 boundarieson what will generate profits in a business.– Many organizations invest in innovationsyet find that thesenever pay off (a case of ahead of their time or behind their time).– If your company's innovation strategyis not aligned withyour 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 marketand then relentlessly moves up market, eventually displacing established competitors– ‘disruptive technologies introduce a very different package of attributesfrom the one mainstream customers historically value’ (Bower and Christensen 1995, p. 45)– typical characteristics: simplicity, convenience, accessibility, and affordabilityKey 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?