BMGT301 Disruptive Technologies: Understanding Giant Killers & Tactics to Avoid Extinction

disruptive technologies

create market shocks and catalyze growth

characteristics of disruptive technologies

-come to market with a set of performance attributes existing customers don’t value

-over time, performance attributes improve to the point where they invade established markets

web video disruption

-broadband not widely available and very expensive

-cheaper processors embedded internet-accessing smarts into televisions

-availability through mobile & time-shifting

-Netflix navigated through radical, tech fueled disruption

digital audio disruption

-portable MP3s terrible

-Apple Music and Spotify

ride sharing devices disruption

-getting in stranger’s car was crazy idea

-more uber drivers than taxis

-ride prices fell, and security became superior

why big firms fail

-fail to see disruptive innovations as a threat

-early customers for a disruptive technology care about different features and attributes than incumbent customers

-disruptive technologies become good enough to appeal to customers of incumbent products and invade markets

ways to improve radar for disruptive technologies

-remove short-sighted, customer-foucsed, and bottom-line-obsessed blinders

-have conversations with those on experimental edge of advancements

-increase conversations across product groups between managers and technologies

-if employees quit to join future technology, may signal development worth paying attention to

what to do if disruptor spotted

-build portfolio of options on emerging technologies

-options give firm right to continue and increase funding

-create separate division for innovation

Intuit

leader in several packaged software categories (personal finance, small business, tax prep)

key performance indicators (KPI)

measurable values defined by a firm to demonstrate progress towards a goal

ways to be a tech victor

-keep disruption detecting radar dialed up high

-watch trajectory of fast/cheap technology curves