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DISRUPTIVE TECHNOLOGY

DISRUPTIVE TECHNOLOGY. By Anita Hector And Ken Cormier. Description of Disruptive Technology. Breakthrough product or process related technology that destroys the competencies of incumbent firms in an industry High-End Disruption-(New Market) VCR’s enabling people to rent vs Movie Theaters

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DISRUPTIVE TECHNOLOGY

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  1. DISRUPTIVE TECHNOLOGY By Anita Hector And Ken Cormier

  2. Description of Disruptive Technology • Breakthrough product or process related technology that destroys the competencies of incumbent firms in an industry • High-End Disruption-(New Market) VCR’s enabling people to rent vs Movie Theaters • Low-End Disruption- (Target least Valuable Customers)- • Hybrid Disruption-some combination of both

  3. Performance Maturity Maturity Growth Disruption Growth Embryonic Embryonic Time Double “S” Disruptive Technology Curve

  4. History of Disruptions • Vinyl Record and Tapes • Slide rules and calculators • Carburetors to fuel injection

  5. Importance to Kodak Business Strategy To Contend with Disruptive Technology Clayton Christensen a Rhodes Scholar and Professor at Harvard Business School suggests three: • Value Proposition • Profit Formula • Compatible Business Model

  6. Value Proposition • Customers valuing digital at low end

  7. Profit Formula • Kodak not paying attention to low end focusing on established film customers and competencies

  8. Compatible Business Model

  9. Key Findings and Insights • Graph From Clayton’s article “how to assess Disruptive techs”

  10. Key Findings and Insights • Determine whether disruptive or sustaining • Focus is on products target customers and what they want to buy ie, Kodak focused on film consumers not digital photography.

  11. Key Findings and Insights • Define strategic significance

  12. Key Findings and Insights • Locate initial market for disruptive technology

  13. Key Findings and Insights • Place responsibility for building disruptive technology in independent organization

  14. Key Findings and Insights • Keep disruptive organization independent

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