disruptive technology - why large companies often fail to innovate
TRANSCRIPT
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RESOURCE DEPENDENCE
COMPANIES FREEDOM OF ACTION IS LIMITED TO SATISFYING THE NEEDS OF EXTERNAL ENTITIES
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THE TECHNOLOGY S-CURVEPr
oduc
t per
form
ance
Time or engineering effort Richard N. Foster: „Innovation: The attacker's advantage“, New York, Summit Book, 1986
OFTEN USED TO PREDICT NEW TECHNOLOGIES
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THE TECHNOLOGY S-CURVEPr
oduc
t per
form
ance
Time or engineering effort Richard N. Foster: „Innovation: The attacker's advantage“, New York, Summit Book, 1986
DECREASING RATE OF IMPROVEMENT INDICATES THAT A NEW TECHNOLOGY MAY EMERGE
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#1 Sustaining technologies
IMPROVESPRODUCT PERFORMANCE
Prod
uct p
erfo
rman
ce
Time or engineering effort
Technology #1
Technology #2
Technology #3
Clayton M. Christensen: „Exploring the Limits of the Technology S-Curve“, Productions and Operations Management 1, no. 4, 1992
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#2 Disruptive technologies
Technology #1
Technology #2
Technology #2
Application (Market) „A“
Application (Market) „B“
Time or engineering effort
Prod
uct p
erfo
rman
ce
DISRUPTS OR REDEFINES PERFORMANCE TRAJECTORIES
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 10, 47
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Sustaining innovations
MARKETS: KNOWN
CUSTOMERS:UNDERSTOOD
MARKETRESEARCH
GOOD PLANNING
EXECUTION ACCORDINGTO PLAN
+ +
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MARKETRESEARCH
GOOD PLANNING
EXECUTION ACCORDINGTO PLAN
+ +
Disruptive innovations
MARKETS: UNKNOWN
CUSTOMERS:UNKNOWN
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PROBLEMSMALL MARKETS OF
DISRUPTIVE TECHNOLOGIES DON’T SERVE THE NEAR-TERM GROWTH OF LARGE
COMPANIES
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REVENUE 2016
GROWTHRATE
ADDITIONAL REVENUE
$40M 20 % $8M
$400M 20 % $80M
$4G 20 % $800M
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 147-148
SMALL COMPANY
LARGE COMPANY
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THEY OFTEN FAIL, BECAUSE THEY WAIT TOO LONG UNTIL THEMARKET IS ESTABLISHED
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0 %
10 %
20 %
30 %
40 %
ESTABLISHED MARKET EMERGING MARKETClayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 143-146
FIRMS REACHING $100M WITHIN TWO YEAR OF ENTERING THE MARKET
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20 TIMES THE REVENUE
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 143-146Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 143-146
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0
500.000.000
1.000.000.000
1.500.000.000
2.000.000.000
ESTABLISHED MARKET EMERGING MARKETClayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 143-146
AVERAGE REVENUE CAPTURED PER FIRMS WITHIN TWO YEAR OF ENTERING THE MARKET
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PROCESSES
FORMAL INFORMAL CULTURAL
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 185-196 © NORMAN HIOB
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ESTABLISHED TO PERFORM TASKS IN A CONSISTENT WAY (= VALUE CREATING MECHANISMS)
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VALUES
CRITERIA BY WHICH DECISIONS ABOUT PRIORITIES ARE MADE
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 185-196 © NORMAN HIOB
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12345 TECHNOLOGY UNDERSUPPLY
RESOURCE DEPENDENCE
UNKNOWN MARKETS
GROWTH NEEDS
PROCESSES AND VALUES
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1SPINS-OFF
CREATE AN ORGANISATION WHOSE SIZE MATCHES THE OPPORTUNITY
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 154-155
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2INCUBATE
ACQUIRE A SMALL COMPANY WHOSE STRUCTURE MATCHES THE OPPORTUNITY
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 154-155
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DISCOVERYDRIVEN LEARNING
TEST MARKET ASSUMPTIONS
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 180-182
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PLANS FOR EXECUTION
PLANS FOR LEARNING
Clayton M. Christensen: “The Innovators Dilemma“, Harper Business, New York, 2011, p. 180-182
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12345 PLAN FOR FAILURE
FIND NEW CUSTOMERS
CHECK PROCESSES AND VALUES
SET UP SEPARATE ORGANISATION
CREATE PLANS FOR LEARNING
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