new technology lecture l09 the innovator's dilemma

Lecture L09 THE INNOVATOR’S DILEMMA

Economist article: The last Kodak moment? !

Kodak is at death’s door; Fujifilm, its old rival, is thriving. Why?

READING ASSIGNMENT

Founded in 1880 Noted for their pioneering technology

“You press the button,we do the rest”

By 1975 they had 90% of firm and 85% of

camera sales in US

Technology is one of the

major factors in change

Firms that succeed in one generation of innovation almost inevitable become hamstrung by their own success and thus doomed to lose out in the next wave of innovation

Source:  (Christensen,  2000)  

The Innovators Dilemma

Surviving Technological Change

What is it that kills successfulcompanies?

Understanding the Job Clayton Christensen

professor at Harvard Business School

Reason for Failure?

If you become wildly successful because you do everything right,

you're doomed

Source:  Yang,  Harvard

Traditional Concept of Good Management

Focus on your best customers Focus on your highest margin products

Resources, Processes and Values Theory   R e s o u r c e s (what a firm has), p r o c e s s e s (how a firm does it´s work), and v a l u e s (what a firm wants to do) collectively defines an organisation’s strengths as well as weaknesses and blind spots

Source:  (Christensen,  2000)  

The RPV Theory

WHEN P L AT F O R M

S H I F T HAPPEN, COMPANIES FIND IT HARD TO MOVE

TO NEW GENERATION OF

TECHNOLOGY

Image  Source  Page:  http://www.teach-­‐ict.com/wp/archives/264

Only ONE established firm managed the transition from one

generation to the next

Why did they fail?

They listened to their

customers

Case StudyBetware transformed from custom software development to product development – from technology to service

If I’d asked my customers what

they wanted, they’d have said a

faster horse - Henry Ford

We tend to view technology based on

past usages but not the future potential

The hardest things when you are trying to affect change !

Steve Jobs Insult Response, WWDC 1997

Source:  Yang,  Harvard

Traditional Concept of Good Management

Leads successful companies to ignore disruptive innovations with deadly consequences

“We listen to our best customers”

The Innovation Trap

“Our customer is asking for the new product, but we don’t have it and its to late the enter the market”

The Innovation Trap

“Our customer are starting to ask for our new product.”

The Innovation Trap

It is very difficult for incumbent companies to disrupt themselves,

so usually others will do it

Markets that do not exist cannot be

analysed  !

- Clayton Christensen