Chapter 4/CYU 4

S-Curve

A model illustrating the adoption pattern of technologies, showing slow initial adoption, rapid growth, and eventual leveling off.

Introduction Phase

The initial stage of the S-curve where high investments are made but minimal performance improvements are seen.

Growth Phase

The second stage of the S-curve where knowledge accumulation leads to rapid performance improvements.

Maturity Phase

The stage in the S-curve where growth slows down as technology reaches its physical limitations.

Decline & Replacement Phase

The stage when new technologies emerge, forming a new S-curve after previous technologies have matured.

Disruptive Technology

A technology that disrupts established markets by rendering existing technologies obsolete.

Technological Cycle

The cycle that industries experience where old technologies reach limits and are replaced by new ones.

Competitor Performance

The necessity for companies to benchmark against industry leaders to ensure they remain competitive.

Market Adoption

The process by which consumers begin to use a new product, following an S-curve trajectory.

Innovation-Centric Culture

A corporate culture focused on continuous innovation and adaptation to market changes.

Reciprocal Innovation

Ongoing innovation strategies to refresh product lines and maintain market relevance.

Sustaining Technology

Technologies that improve over time while retaining the same basic product model.

Technological Discontinuities

Major shifts in technology that redefine market boundaries and push out existing technologies.

Timing in Disruption

The importance of introducing new technologies when existing technologies reach maturity.

Customer Hesitation

The reluctance of customers to adopt new technologies until they are more established.

Market Development Pattern

The typical progression from functionality, reliability, convenience, to price in market adoption.

Organizational Rigidity

The resistance of large organizations to adapt due to existing structures and strategies.

Spinoff Strategy

Creating independent entities to explore disruptive technologies without existing organizational constraints.

Emergence of Amazon

Amazon's introduction of an online bookstore that transformed the traditional book industry.

Example of Disruptive Innovation

The smartphone disrupting traditional mobile phones.

Jumping to a New S-Curve

Successful companies relocate to a new S-curve by innovating before peak performance is reached.

Physical Limitations

Boundaries that technology faces as it matures, hindering further enhancements.

Case Study: Samsung vs. Apple

Comparison of how different companies manage innovation and market competition.

Product Life Cycle Stages

Includes introduction, growth, maturity, and decline phases of product evolution.

Market Readiness

The state of the market when it is prepared to adopt a new technology.

Investor Expectations

The demand for immediate profitability, often hindering investment in disruptive technologies.

Leadership Refreshment

The need for continual rejuvenation in leadership to maintain innovative growth.

Technological Advancement

The process through which technologies improve and evolve over time.

Hyper-competitive Markets

Industries characterized by intense competition and rapid technological change.

Smartphones vs. Nokia Phones

The shift where smartphones replaced traditional mobile devices, highlighting market disruption.

Failure of Traditional Retail

Many brick-and-mortar stores struggled or closed due to the rise of e-commerce.

Early Warning Signs of Stagnation

Indicators that a company should innovate to avoid losing market relevance.

Knowledge Accumulation

The gathering of information and skills that enable accelerated growth in technology.

Consumer Behavior Changes

The shifts in how consumers interact with and adopt new technologies.

Interoperability Challenges

Difficulties in ensuring new technologies work with existing systems and standards.

Market Conditions Impact

The influence of current market dynamics on the success of new technology.

Proactive vs. Reactive Strategies

The approach of leading market changes rather than responding to them.

Long-Term Success Strategy

The importance of proactive innovation and adaptation to sustain success over time.