Disruptive Innovation and Technology

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Ko Chi Kit
文章: 108
註冊時間: 2020-07-18, 22:30
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Disruptive Innovation and Technology

文章 Ko Chi Kit »

Probably you have already heard of the term “Disruptive Innovation” or the term “Disruptive Technology” which explains the failure of Kodak.
According to Clayton Christensen, For any products, there are different types of users (low-quality use, medium quality use, high-quality use, most demanding use with the highest expectation). Companies should try to satisfy the low-quality use first as gradually when the technology becomes mature; then meeting the most demanding users’ expectation would replace the old one.
Back in the times, Kodak was one of the famous iconic camera film manufacturers. While the industry has started to focus on the digital camera’s development (low-quality use), Kodak continued improving its film cameras (most demanding use). Then, as time goes by, the digital cameras have drawn public attention and the influence has overridden the film camera on the market. Not many people use film cameras (Kodak’s products) anymore. As a result, Kodak failed to obtain enough revenue to continue its business.

Similarly, we are using a laptop or computers more often than using old desktop calculators. Another example that we are familiar with is that we are using smartphones not the old phones anymore. In the beginning, compared with the traditional phones’ performances, smartphones had a worse sound quality and much costly. Then, gradually the expensive technology improved and occupies the market.

You may also have watched Netflix online. Yet, when it just started, it was a DVD rental-by-email company. At that time, the main market player was Blockbuster, which didn’t care this small competitor. Soon, when Netflix has started to introduce of streaming with worst performance, the Blockbuster still ignored this new technology. Gradually, the streaming technology gets mature the Netflix has replaced the Blockbuster.

It was there that Christensen discovered that, although new products tend to be inferior to their predecessors, their lower cost leads to mass adoption, driving a virtuous circle in which the new technology is rapidly improved and dislodges competitors. In industry after industry, from steel to microchips, the same trend emerged.

Christensen’s work caught the attention of Andy Grove, who invited him to the Intel offices for a meeting. After hearing Christensen explain his theory, Grove decided to focus on low-cost PCs, which ended up dominating the market. It was a time of rapid change in information technology, a time when storied firms were collapsing and newcomers were commanding astronomical valuations. Christensen’s narrative imposed order on an industry that sorely needed it.

To this day, entrepreneurs hate suits. The founder-CEOs of Silicon Valley view themselves as creative pioneers and management executives as mere profit-boosters. But alone among the stodgy crop of Ivy League MBAs, Christensen married the irreverent spirit of innovation to the staid pragmatism of the case study. His unique blend of analytical prowess, storytelling ability, and passion for innovation left an indelible mark on the tech industry.

Contradict
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註冊時間: 2020-07-14, 22:15
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Re: Disruptive Innovation and Technology

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https://www.youtube.com/watch?v=T3NRqRREhGc

I believe the driverless car is another Disruptive Innovation. It can be integrated into the Smart City project. If there were traffic congestion, it can advise alternative transportation.

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