Podcast
Questions and Answers
How do disruptive technologies primarily differ from sustaining technologies?
How do disruptive technologies primarily differ from sustaining technologies?
- They create new markets and value networks, potentially disrupting existing ones. (correct)
- They serve to increase the efficiency and quality of current services.
- They emerge gradually and predictably within established markets.
- They focus on improving existing products rather than creating new markets.
Which of the following best describes the strategic approach a company should take to build for disruption?
Which of the following best describes the strategic approach a company should take to build for disruption?
- Looking beyond current products to identify new market opportunities and investing in emerging technologies. (correct)
- Focusing exclusively on improving current product lines to maintain market share.
- Concentrating solely on cost reduction to compete with new entrants.
- Investing only in technologies that directly enhance existing business models.
What is a critical requirement for companies to effectively manage disruptive change?
What is a critical requirement for companies to effectively manage disruptive change?
- Relying solely on established technologies to ensure stability.
- Maintaining strict adherence to long-term strategic plans.
- Avoiding risk-taking and focusing on proven strategies.
- Being agile and flexible, adapting to market conditions and customer needs. (correct)
Why do successful companies sometimes fail to innovate and adapt to new technologies?
Why do successful companies sometimes fail to innovate and adapt to new technologies?
What characteristic often makes disruptive technologies attractive to new entrants in a market?
What characteristic often makes disruptive technologies attractive to new entrants in a market?
Which of the following is an example of a technology that began as a niche product and eventually became mainstream, replacing established technologies?
Which of the following is an example of a technology that began as a niche product and eventually became mainstream, replacing established technologies?
What is a potential risk of focusing too much on sustaining technologies?
What is a potential risk of focusing too much on sustaining technologies?
In order to effectively build for disruption, what organizational structure should companies consider?
In order to effectively build for disruption, what organizational structure should companies consider?
Why should a separate unit focused on new markets be isolated from the existing business model?
Why should a separate unit focused on new markets be isolated from the existing business model?
What is the primary purpose of sustaining technologies?
What is the primary purpose of sustaining technologies?
Flashcards
Disruptive Technologies
Disruptive Technologies
Innovations that create new markets, disrupting existing ones. Different from technologies that only improve existing products.
Sustaining Technologies
Sustaining Technologies
Innovations that improve existing products and services in an evolutionary manner by enhancing efficiency, quality, or features.
Definition of Disruptive Tech
Definition of Disruptive Tech
Technologies that initially target a small market, but eventually become mainstream and overtake established markets.
Failure to innovate
Failure to innovate
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Separate Unit for Exploration
Separate Unit for Exploration
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Building for Disruption
Building for Disruption
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Managing Disruptive Change
Managing Disruptive Change
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Study Notes
- The Innovator's Dilemma highlights the importance of innovation and adaptation in business.
Overview
- Disruptive technologies create new markets and value networks, which can disrupt existing markets and industries.
- Sustain technologies improve existing products and services.
- Building for disruption requires companies to look beyond current products/services and identify new market opportunities.
- Companies must invest in R&D, explore emerging technologies, and embrace innovation.
- Managing disruptive change involves being agile and flexible, adapting to market conditions and customer needs.
- Companies need to take risks, experiment, and learn from failures.
The Innovator's Dilemma
- Successful companies may become complacent with existing business models.
- This can lead to failure to innovate/adapt, resulting in their decline.
- Disruptive technologies can emerge unexpectedly.
- They often pose a threat to companies unable to adapt to new changes.
Disruptive Technologies
- Disruptive technologies target a small market initially, but become mainstream and overtake established markets.
- These technologies are characterized by lower performance and greater margins than established technologies.
- This makes them attractive to new entrants.
- Examples of disruptive technologies include personal computers, digital cameras, and mobile phones.
- These started as niche products but went mainstream and superseded established technologies.
Sustaining Technologies
- Sustaining technologies improve the performance of existing products and services.
- These technologies are incremental/evolutionary in nature, improving efficiency, quality, or features.
- Sustaining technologies help companies maintain a competitive edge and meet changing customer needs.
- They also help reduce costs, improve quality, and increase efficiency.
- Focusing too much on sustaining technologies can lead to complacency and loss of sight of new market opportunities.
- This can result in a decline in competitiveness and eventual market failure.
Building for Disruption
- To build for disruption, companies need to create a separate unit or division.
- This should focus on exploring new markets and technologies, separate from the main business.
- The separate unit should focus on exploring new markets to avoid getting bogged down by the existing model.
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