The Innovator´s DilemmaFramework By: Clayton Christensen

Presentation By: Tatiana Khair Ashkan Marsh

Sune Pedersen David Vega

Overview

• Part 1: Theory of Disruptive Innovation

• Part 2: Theory of Value Networks

• Part 3: What You Should Do As A Manager & Current Disrupters Examples

Theory of Disruptive Innovation

Ashkan Marsh

Clayton Christensen• Professor at Harvard Business School

• World Renown Innovation Expert

• Focus on Disruptive Innovation of Commercial Enterprises

• 5 minute intro video

“Precisely because these firms listened to their customers, invested aggressively in new technologies that would provide their customers more and better products of the sort they wanted, and because they carefully studied market trends and systematically allocated investment capital to innovations that promised the best returns, they lost their positions of leadership.”

WHAT DID I DO

WRONG??

2 Types of Innovation

Sustaining vs. Disruptive

Sustaining Innovation

• The continuation of a technology into its refined forms

• Driven by existing industry leaders

• Listen to your existing customers

Disruptive Innovation

• A new form or format in process or technology

• Driven by new entrants and missed by industry incumbents

• Don’t listen to your customers

Disruption of Disc Drives

Disruption of US Car Sales

Disruption of Swiss Watches

Quartz movement introduced

Summary Conventional S-Curve Disruptive S-Curve

Theory of Value Networks

Tatiana Khair

Why do successful companies fail?

Why do successful companies fail?

1. Wrong managerial, organizational or cultural response to technological change

2. Lack of ability to deal with new technologies

3. Value networks concept

Value Network

Value Network

Value Network

Key Points• Companies depend on customers and investors for resources

• Small markets don't solve the growth needs of large companies

• Markets that don't exist can't be analyzed

• An organization's capabilities define its disabilities

• Technology supply may not equal market demand

What You Should Do As A Manager & Current

Disrupters Examples

Sune Pedersen David Vega

What can managers do?

2000 2020

Low end traditionalMid end traditionalHigh end traditionalDisruptive technology

MARKET• Find the right customers (compete against non-

consumption)• Develop a new market that values the attribtues• Plan to fail early and inexpensively

ORGANISATION• Establish sub-organizations that get existed about small

opportunities and wins• Utilize the mainstream resources, but reinvent processes

and values

Examples

Most Disruptive Technology of all TimeInternet

• Arpanet was born in 1969 for military purposes.

• Changed the world of communications.

• In 2012 it reached 2.4 billion users.

Is the iPhone a Disruptive Technology?

“The iPhone is a disruptive technology because it has created a pocket desktop for users”.

-Tim Bajarin

President of Creative Strategies.

Disruptive!• Made mobile web more accesible

and commercial with the applications.

• Improved exponentially existing Smartphones in the market.

• Impacted telecom and computing industries as well.

Other disruptive technologies

Disruptive Companies Around the World

http://www2.technologyreview.com/tr50/2012/

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.”

-Charles Darwin

“Those who live by the sword…. Will be shot by those who don’t”

References

• http://mashable.com/2012/06/29/iphone-turns-5-op-ed/• http://www.lasvegassun.com/news/2009/jan/09/iphone-disruption-t

ech-execs-yes/#axzz2Yc9Rzfvt• http://www.avg.com/history-of-internet• http://www.livescience.com/11373-top-ten-disruptive-technologies

.html• http://www2.technologyreview.com/tr50/2012