Disruptive

Technologies
For Sustainability
Anurag Gupta
1st Year MMgt
 Definitions

Sustainability:
The ability to be maintained at a certain rate or level.

Disruption:
Disturbance or problems which interrupt an event, activity or process.
Innovate to alter the structure.
 Introduction

There has been a disruption in the way, we handle information.

These are fundamentally information dependent categories.

A plethora of information can be gained from the non-investor stakeholder, from news and
social media, and from governmental and other sources.

Most critical information is now web- based.

 Differences between Sustaining Innovation and Disruptive
Innovation

Sustaining Innovation -> Incremental innovation -> Enables an existing product

-> Companies constantly improve same product.

Disruptive Innovation -> Innovation to create new market (+) -> Disrupts an
existing firm(-), displacing an earlier technology.
Sustainable Innovations -> Change along a known road.
Larger screen for your iPhone
Internal combustion engine with higher efficiency with lower pollution
A new taste of ice cream, with changes in amount of cream and sugar.

Disruptive Innovations -> Game changers -> Subset of Sustainable Innovations

Nokia destroyed because of transition from mobile pones to smartphones.
Hard Metals (otherwise known as cemented carbides) have killed tool steel and are, still now,
progressively eroding its business.
LEDs are disruptive towards incandescent filaments.

Differences
 Apple Case

Original Macintosh (1984)

-> The original Macintosh. Introduced January 1984.

-> Apple co-founder Steve Jobs was forced out of Apple in 1985.
-> The Macintosh Classic. Introduced October 1990.
-> Sustaining Innovation.

Macintosh Classic (1990)

Apple Example
-> Loosing market share to IBM Compatibles.
-> In 1998, Steve Jobs returns.
-> Apple consolidated its multiple consumer-level desktop
models into the all-in-one iMac G3.
-> Commercial success and brand revitalized.
-> Disruptive Innovation.

iMac G3 (1998)
Sustaining technologies
-> Foster improved product performance.
-> Do not alter markets.
-> Requested by users.

Disruptive Technologies
-> Drive corporate sustainability efforts.
-> Example of pen manufacturing.

More points
 A Simple View of Disruptive Innovation

Is the innovation disruptive to all of the significant incumbent

firms in the industry?
If the innovation appears to be sustaining to one or more
significant players in the industry, then the odds will be
stacked in that firms favour, and the entrant is unlikely to win.

Immelts approach shift power to where the growth is. Build

new offerings from the ground up. Customize objectives,
targets and metrics. Build a new unit from the ground up, like
new companies. Have the unit report to someone high in the
organization.

Disruptive Innovation
Creative destruction: In capitalism, innovative entry by entrepreneurs was the force that sustained
long-term economic growth, even as it destroyed the value of established companies that enjoyed
some degree of monopoly power.
Example: Hyderabad changing from a city for public sector to a knowledge sector (IT,
Healthcare).

A new scientific truth does not triumph by convincing its opponents and making them see the
light, but rather because its opponents eventually die, and a new generation grows up that is
familiar with it.

Age of Discontinuity: In an age of discontinuity, as Drucker called the current era,

entrepreneurs could find significant opportunities to transform organizations if they were willing
to get ahead of societal changes.
Example: CEO of HCL Vineet Nayar.
 Sources to Identify Successful Disruptive Opportunities

The emergence of big data and big data analytics has had a paramount impact.
This is possible thanks to cognitive computing.
This enables the computer to process text just as a human would.
Another element to cognitive computing is machine learning.
This provides the ability of the computer to learn autonomously.
A plethora of information can be gained from the non-investor stakeholder, from news and
social media, and from governmental and other sources.

Sources
c
Information Technology

1st generation primarily to improve productivity and efficiency of selected

processes transaction processing, accounting, support for engineering and
science
2nd generation integration within the enterprise, organization level
optimization ERP, Marketing, Sales,
3rd generation integration between enterprise and its customers and
partners e-Business, supply chain integration, B2B, B2C
4th generation New communication and collaboration paradigms social,
mobile,
4th generation ++ - Innovative services and products driven by technology
capabilities
Information Technology and the Platform Revolution

Many industries are being disrupted by information technology platforms

Example: Ola, FlipKart, MakeMyTrip
Early platforms provided easier access to a set of services, often removing
middle men
Example: Travel reservation systems like MakeMyTrip
Next platforms enabled a select set of service providers to reach a
broader market, often disrupting other channels of delivery
Example: FlipKart, eBay
Current platforms increase value through network effects
Example: Ola cabs, FaceBook
Many existing services and products are being disrupted
Example: AirBnB

Platform provides a marketplace for providers of short term rental properties to offer hosting services to travellers
Producers: Property owners, can even be private individuals rather than businesses
Consumers: Travellers looking for accommodation
Platform value
Consumers get a larger selection of unique accommodations. Often cheaper than traditional lodging options.
Producers get access to large pool of consumers without having to do lot of marketing and sales. Even private individuals can
participate.
Owner of the platform
Provide information about the lodging facility, ratings and reviews from other participants, reputation of guests and hosts,
secure purchase and payment, rules of engagement
Network effects
Consumers are attracted by cheaper and unique accommodation. Producers are attracted by access to a large pool of customers
As more consumers make reservation, more providers list their accommodation
Platform provides new value for producers (owners had limited ability to rent before AirBnB) as well as for consumers
Disrupts existing model of hotel industry
 A Sustainable Dialogue
You can never have an impact on society,
if you have not changed yourself .

- Nelson Mandela