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Disruptive Innovation Model (DIM):A Primer for Entrepreneurs*
T
he term
disruptive technology
was coined byClayton M. Christensenand introduced in his1995  article
 Disruptive Technologies: Catching the Wave
,which he coauthored with Joseph Bower. Hedescribes the term further in his1997book 
The Innovator's Dilemma
. In his sequel,
The Innovator's Solution
, Christensenreplaced
disruptive technology
with the term
disruptiveinnovation
because he recognized that few technologies areintrinsically disruptive or sustaining in character. It is thestrategy or business model that the technology enables thatcreates the disruptive impact. For strategists this has become ahot topic in today's rapidly evolving markets.However, in order to make the concept moreuseful in the Introduction to Entrepreneurship& Innovation setting (ENTR20000), it isuseful to distinguish between different categories of disruptive innovations that all have uniquecharacteristics and consequences:
 D
isruptive Technologies
:
Some technologies have displaced other technologies tooffer a whole new sphere of possibilities at lower prices. (See picture of 5 meg hard drive to left in1956 picture!) In the computer industry, CD-ROMs have displaced floppy disk drives because theysupport storing much more information at lower prices. In turn,thumb drives are quickly replacing CD-
ROMs. In turn, widely available “free” online storage space is replacing mechanical
storage, for instance,www.box.com. See alsoAdrive.com.In the telecommunication industry, internet telephony (VoIP) is another example of a technology that is steadily replacing older telecommunications technologies and is being widely adapted by phonecompanies themselves. In roughly two years time, the VOIP competitive arena has gonefrom few players (Vonage, Skype, Packet8), to many, and now players are quietly foldingtheir tents (SunRocket
 
). With time, disruptive technologies often become enablers for disruptive products, processes and business models.
 D
isruptive Products
:
These are products or services that replace similar existing products or services based on their superior attributes or lower price. As anexample, mobile phones have become an important complement and oftensubstitutes for fixed line phones. Digital music players, such as the Apple iPodhave disrupted similar products like the CD-based walkman. Introduction of the iPhone June29, 2007 is another prime example. The iPhone has the potential to replace typical cell phones, iPods, GPS devices, web access devices, and a host of others. When the DIM wasfirst created in 2007, Netbooks did not exist; now they are storming the country. I have ownedthree and really like them for their light weight and extended battery life.
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