Simulation Innovation I: Technology Disruption in the Simulation Industry

Roger SmithSPARTA Inc.

rsmith@sparta.com407.380.0076

ConferenceOrlando, Florida June 20-21, 2005

http://www.halldale.com/

© Copyright 2005, Roger Smith

Simulation Innovation

1947 1985 2005

Innovation & New Technology Displace Established Technology & Practitioners

Time

Pro

du

ct P

erfo

rman

ce

Progre

ss due to

sustaining technologies

Performance demanded at the low end of the market

Performance demanded at the high end of the market

(Christensen, 1997)

Christensen’s Disruptive Innovation

Progre

ss due to

disruptiv

e technologies

Market disruption opportunity

Squeezed OutNicheUpper Half

Share Low EndOwn the Market

Time

Pro

du

ct P

erfo

rman

ce

Progress = Waves of Disruption

High-end Customer Demand

Low-end Customer Demand

Defense S

imulatio

n

D 3 = W

eb Servi

ces

SIMNET

CCTT

OOSForterraAW-VTT

FSW

Closer Than You Think!

D 1 = P

C Games

D 2 = C

onsole G

ames

America’s Army

SpearheadMS Flight

Disruptive Forces in Simulation

Customer Perspective Societal Immersion in Games Military Acceptance of Games

Computer Technology Graphics Cards Game Companies & Market

Physical Devices Theme Park Ride Technology Electric vs. Hydraulic Motion

Actuators

Squeezed OutNicheUpper Half

Share Low EndOwn the Market

Simulation:Weather, Markets, Medical

Corporate Training, Education

Time

Growth StrategyP

rod

uct

Per

form

ance

Defense S

imulatio

n

D 1 = P

C Games

D 2 = C

onsole G

ames

D 3 = W

eb Servi

ces

Move Up: Change Customers

Move Vertical:

Change Technology

Move Down: Change Industries

Defense Training& Analysis

Recommendations

Disruptive innovations move through markets

Move Vertical to new technologies Move Up to new customers Move Down to new industries

References Utterback, J. (1996). Mastering the Dynamics

of Innovation. Harvard Business School Press. Christensen, C. (1997). The Innovator’s

Dilemma: When new technologies cause great firms to fail. Harvard Business School Press.

Christensen, C. & Raynor, M. (2003). The Innovator’s Solution: Creating and sustaining successful growth. Harvard Business School Press.