5 Examples Of Disruptive Innovation
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Transcript of 5 Examples Of Disruptive Innovation
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5 Examples of Disruptive Innovation
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Christian Sandström holds a PhD from Chalmers University of Technology, Sweden. He writes and speaks about disruptive innovation and technological change.
www.disruptiveinnovation.se
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Harvard professor Clayton Christensen
coined the term disruptive innovation in
his book ’The innovator’s dilemma’,
published in 1997.
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Harvard professor Clayton Christensen
coined the term disruptive innovation in
his book ’The innovator’s dilemma’,
published in 1997.
This presentation gives five illustrative
examples of disruptive innovation.
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A disruptive innovation initially offers a lower performance according to what the
mainstream market has historically demanded.
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A disruptive innovation initially offers a lower performance according to what the
mainstream market has historically demanded.
At the same time it provides some new performance attributes, which in turn makes it
prosper in a different market.
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A disruptive innovation initially offers a lower performance according to what the
mainstream market has historically demanded.
At the same time it provides some new performance attributes, which in turn makes it
prosper in a different market.
As it improves along the traditional performance parameters it eventually displaces
the former technology.
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For further detail on this concept, click here:
http://www.slideshare.net/Christiansandstrom/disruptive-technologies-an-introduction
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Number 1:
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The Transistor Radio
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Transistor Radio Analogue Radio Traditional performance New performance
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Transistor Radio Analogue Radio Traditional Worse sound performance New performance
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Transistor Radio Analogue Radio Traditional Worse sound performance New Portable performance Low Battery consumption
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Being portable and offering worse sound quality, the transistor radio was adopted by teenagers who could
bring music to the beach.
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As the sound quality improved,
it eventually displaced the analogue, big
furniture radios.
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Number 2:
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Pocket calculators
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Pocket calculator Desktop calculator Traditional performance New performance
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Pocket calculator Desktop calculator Traditional Worse computing performance performance New performance
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Pocket calculator Desktop calculator Traditional Worse computing performance performance New Portable performance
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Over time, the computing performance of these smaller,
simpler calculators was improved.
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As they became cheaper and were sold in larger and larger volumes, sales offices lost their value. Calculators started to
be sold in bookstores and large retail stores.
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Number 3:
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LCD TV versus Cathod Ray Tube (CRT) TV
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LCD TV CRT TV Traditional performance New performance
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LCD TV CRT TV Traditional Worse image quality performance New performance
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LCD TV CRT TV Traditional Worse image quality performance New Low battery consumption performance Low weight
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LCD screens initially prospered in various applications where image quality wasn’t important.
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In mobile phones, portable video games and cameras, battery consumption and weight were more important.
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When the image quality had become good enough, they displaced CRT TVs in the 2000s.
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Number 4:
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Minimills Integrated mills Traditional performance New performance
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Minimills Integrated mills Traditional Worse steel quality performance New performance
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Minimills Integrated mills Traditional Worse steel quality performance New Cheaper, easier to produce performance
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The minimill technology used scrap, put it in a furnace and made new steel of it.
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The minimill technology used scrap, put it in a furnace and made new steel of it.
Cheap, low quality steel.
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The minimill technology used scrap, put it in a furnace and made new steel of it.
Cheap, low quality steel.
The integrated steel companies were more than happy to get rid of this low-margin
business and instead focus on the high-end.
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The minimill technology used scrap, put it in a furnace and made new steel of it.
Cheap, low quality steel.
The integrated steel companies were more than happy to get rid of this low-margin
business and instead focus on the high-end.
So they did, but slowly and steadily, the minimill technology offered better steel quality
and captured segment after segment.
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Eventually, the integrated steel mills started to suffer, badly.
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Number 5:
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Mobile phones versus regular phones
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Cell phone Old phones Traditional performance New performance
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Cell phone Old phones Traditional Worse sound quality performance Expensive New performance
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Cell phone Old phones Traditional Worse sound quality performance Expensive New Portable performance
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As mobile phones became cheaper, the sound quality improved and new functions were
added, it eventually displaced the analogue phones.
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Sources
Christensen, C.M. (1997) The Innovator’s Dilemma, Harvard Business School Press,
Cambridge, Massachusetts.