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The Innovator's Dilemma. When New Technologies Cause Great Firms to Fail. By Clayton M. Christensen. Harvard Business School Press. (C) President. PDF | Based on research by Professor Clayton Christensen. The Innovator's Dilemma. Conference Paper (PDF Available) · April with 4, Reads. —Forbes The Innovator's Dilemma is the revolutionary business book that has forever changed corporate America. Based on a truly radical idea—that great.
Microsoft's Excel spreadsheet software, for example, required 1.
Its version 5. Some industry observers believe that if a team of developerswere to watch typical users, they would find that functionality has substantially overshot mainstream market demands. If true, this could create an opportunity for a disruptive technology - applets picked off the internet and used in simple internet appliances rather than in full-function computers, for example - to invade this market from below.
Or if we stretch a bit, cloud services not present on our own devices, but on far away server rooms. Tenth chapter of this book is basically the manual for approaching electric vechicles as a disruptive technology - a manual for Elon Musk to build Tesla.
Well, that's why you don't predict, but explore and try. Watching how customers actually use a product provides much more reliable information than can be gleaned from a verbal interview or a focus group. Thus, observations indicate that auto users today require a minimum cruising range that is, the distance that can be driven without refueling of about to miles; most electric vehicles only offer a minimum cruising range of 50 to 80 miles.
Similarly, drivers seem to require cars that accelerate from 0 to 60 miles per hour in less than 10 seconds necessary primarily to merge safely into highspeed traffic from freeway entrance ramps ; most electric vehicles take nearly 20 seconds to get there.
And, finally, downloaders in the mainstream market demand a wide array of options, but it would be impossible for electric vehicle manufacturers to offer a similar variety within the small initial unit volumes that will characterize that business. According to almost any definition of functionality used for the vertical axis of our proposed chart, the electric vehicle will be deficient compared to a gasolinepowered car.
This information is not sufficient to characterize electric vehicles as disruptive, however. What makes them successful today could be their downfall tomorrow, especially in an increasingly global, turbulent and discontinuous world. There is a complex, challenging and sometimes problematic relationship between management practice and the practice of management research Stewart et al.
In fact, there is a perception that a push for industrial relevance in management research has negative consequences for academic rigour and vice versa Tranfield, , Hill et al. The Mode 2 approach offers researchers an opportunity to simultaneously seek relevance without sacrificing rigour. At the onset of the current research the authors were faced by the simultaneous appearance of four features, which typify the Mode 2 approach to research Stewart et al.
Thirdly, the group had a socially-distributed research capability; and fourthly, theory- building and application were combining in the co-production of new knowledge. A three phase approach with four key outcomes form the basis of the research design figure 4. To date the first two outcomes the development of a conceptual framework and a decision on the Figure 4: Research design 7 Thomond, P. A survey strategy was employed for the co-creation and development of a conceptual framework for disruptive innovation.
The framework contributes to the holistic academic understanding of disruptive innovation in the context of the larger agenda of innovation strategy, whilst simultaneously adding value to the practitioner audience by explaining the multifaceted and interrelated features of disruptive innovation in a pragmatic and understandable manner.
The conceptual framework surfaced further major benefits.
For example, the graphical and conceptual synthesis of a holistic understanding of the topic, led to the development of a common language that encouraged feedback and two- way connections between the academic and industrial communities. Prior to commencing the research, it was acknowledged that limited time resources available may make testing the validity of the whole conceptual framework for disruptive innovation in the context of application an unfeasible task.
A focused approach to testing some of the parts of the conceptual model has therefore been taken. The conceptual framework was used in the first part of the second phase of the research and formed the basis of 2 three-day workshops with 5 industrial collaborators and 2 research centres.
The use of the framework in the workshops generated a wealth of qualitative data that allowed the shared understanding and experiences of the participants to be extrapolated and captured.
A key input to the workshops were barriers to disruptive innovation, as identified in the literature and illustrated in Figure 5. An outcome of the workshops was the prioritisation of these barriers to disruptive innovation, as faced by each of the industrial collaborators in the context of their organisation and innovation processes. The output of the ranking process provided the authors and the rest of the research team with the specific areas of the conceptual framework that would become the subject of further in- 8 Thomond, P.
It is composed of 4 key modules: opportunity recognition, opportunity development, solution development and exploitation. All of these elements continuously interact with the market and external environment in which the organisation operates.
If these elements are effectively managed, it is believed that disruptive innovation can be encouraged. They were asked to consider how effectively their organisations managed each of the key components of the conceptual framework in relation to innovation and disruptive innovation.
The output of the workshop along with the cases, literature survey and expert interviews revealed that organisations face a number of key barriers in pursuing disruption Figure 5. In an attempt to further understand these inhibitors, to discover whether these barriers were equal in magnitude, dependent upon one another etc.
The Vodafone case study is presented in this paper to illustrate how one company tackles these issues. It is responsible for developing new technologies and applications for mobile technologies for clients within the Vodafone group.
Consequently, v-pe has to deal with new technologies that are not yet developed, with customers who do not yet know their future needs and with market players who compete for technological standards and intellectual property rights. Thus v-pe deals with potentially disruptive technological innovations as a 11 Thomond, P. Vodafone recognises the strategic importance of disruptive innovation and actively seeks to identify potentially disruptive innovations as early as possible in order to enable strategic responses.
If a potentially disruptive innovation arises and it does not fit to the stated strategy, v-pe develops the necessary steps to adapt and realign the group technology strategy — thus Vodafone is not an organisation defined by its current customer offerings.
A number of techniques are used to enable v-pe to adopt the results of technology monitoring, market intelligence and product development into strategic alignment.
The academy is a bi-weekly forum in which employees, students and external partners present and discuss results of their projects, thesis projects and other interesting topics around their daily work. Presentations and the resultant discussions are facilitated by a neutral moderator. The academy allows stakeholders to partake in the internal giving and receiving of information thus acting as an enabler of information logistics and knowledge flows.
The information from the academy provides channels for v-pe to influence the owners of group strategy in an ever changing discontinuous world. V-pe recognises the failure of many organisations to generate and support potentially disruptive ideas.
It is held every four to six weeks and invites employees to present insights and ideas. Presenters thus have the opportunity to find promoters and to elicit ideas and feedback from outside of their normal working network. Ideas are collected and those considered as strategically interesting are presented to the business management.
Therefore, ide[e]fix is not only a forum for idea generation, it also acts as a link to strategic decision making. A responsive project or a disruptive innovation can be placed in this forum to be adapted to strategy. Discussing ideas is not the only purpose of this forum: one objective is also to create new ideas.
This is done within creativity sessions in which societal and technological trends are combined to new project ideas. Together with a no-doors architecture and a creative and open culture the generation of potentially disruptive ideas is supported. The decision to fund ideas is based on attractiveness and fit to strategy. The tool helps employees to further develop their ideas and present them in one step.
A detailed checklist of necessary and relevant information combined with a description of the process from an idea to a project proposal helps idea generators to discuss and prepare ideas before they can be evaluated for funding decisions. Ideas that have been presented but not yet considered as mature enough to be worked out as a project proposal are stored in a database, available for every employee.
V-pe is primarily involved at the front end of the new product development process. It is the role of v-pe to prove the validity of new concepts with prototypes and demonstrators and then local Vodafone operations take over the responsibility for their continued development and application.
For this reason they use the policy that creativity consists of two components: originality and adequacy. They believe that no creative idea can be developed to a successful innovation if it does not have the adequacy to fit a market. In these terms, v-pe is aware that the adequacy of potentially disruptive innovations is often not visible on first sight, which makes it harder to identify a disruptive idea as a good idea.
Therefore, v-pe not only supports the creativity of its employees but acts to ensure adequacy at all times. This is done by equipping the employees with a number of tools. A method toolbox has been developed. The toolbox provides creativity, analysis, future research techniques and business planning methods.
Employees are, therefore, supported in the process of combining future market needs and new technologies to create new product concepts and to develop ideas into planned project proposals.
In collaboration with practitioners the authors have used the definition to co- create a conceptual framework that explains the multifaceted and interrelated issues of the phenomenon and how it can be fostered and managed within an organisation as part of a major competitive strategy.
The framework has been used to extrapolate the key barriers to disruption faced by a heterogeneous group of practitioners, and the four most important barriers for each of the collaborating organisations were identified and these were supported by the literature, case studies, and further practitioner and expert interviews.
These factors are now the focus of deeper investigation within this research project. There are two major outstanding objectives in the research: - Firstly, to design a prototype of the toolkit for feedback from a larger audience of practitioners and comparison to the latest developments in the theory of innovation management.
This will culminate in the validation of the conceptual framework for disruptive innovation that has been co-created by innovation practitioners and academia.
The Mode 2 approach to the current research has proved vital in establishing the academic rigour of the investigation whilst also addressing a pertinent industrial problem in the context of practice. The focus of this research has been on transferring knowledge iteratively between 14 Thomond, P.
This has facilitated the development of new knowledge on the theory of disruptive innovation and how it can be fostered in practice by organisations. Strategic Management Journal 22, Allen, D. Amabile, T. Harvard Business Review 76, Baden-Fuller, C.