...Description: Examples of disruptive and sustainable technology that come in my mind are: First is cable television technology as sustainable and IPTV or VOIP as a disruptive technology. Second could be Wi-Fi and Wi-Max as a disruptor. I will pick on the first example here to go in detail i.e. cable television technology as sustainable and IPTV as disruptive. Cable TV was a disruptive technology at one time and has sustained through time. Cable television technology: Cable technology replaced the traditional over-the-air method of broadcasting. It has been in business for a long time and the reason I call it sustaining because, it is customer focused and it is main-stream. Sustaining technologies tend to maintain a rate of improvement and give customers something more or better in the attribute they value. This is what cable television technology was doing till last few year, though now it has some challenges. There is a big competition for this technology from direct broadcast satellite and few other forms of competitions as well, that I will discuss. Nevertheless – • It still dominates the market • It was once emerging technology that proved sustaining and very successful in the broadcasting field. • It is customer focused IPTV: IPTV is a disruptive technology in the field of video delivery. Disruptive technologies introduce a very different package of attributes from the one mainstream customers historically value, and they often perform far worse along one or two...
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...July-December, 2013 Business Perspectives and Research Reverse Innovation: A Gift from Developing Economy to Developed Economy Ritu Sinha 1 Abstract In the era of globalization, emerging market economies are surfacing into centers of innovation. These innovations associate with low-cost products like healthcare devices, wind power, micro finance, electric cars and many more. The success of these frugal innovated products enable developed countries to adopt well. Hence, reverse innovation refers to those innovations which are adopted by developing countries first and then by developed countries. These innovative products are a result of cutting edge technology, common sense and ingenious use of local commodities with the price range that is affordable to a huge mass of consumers like Tata's one lakh ($ 1677) car Nano, Nokia's sturdy mobile phones, the Chottu Cool' refrigerator and many more. These products might be conceptualized for the customers at the bottom of the pyramid still not limited by scaled down versions meant for the lower end. This paper is an attempt to evaluate how reverse innovations are possible in emerging markets and how it can unlock business opportunities at a global scale. Keywords Emerging market, frugal, innovation, product reverse, technology 1. Introduction In today's changing and competitive environment, innovation is must for the survival of any kind of business in the marketplace. The primary objective of any business firm is to understand...
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...GROWTH VIA ONLINE CHANNELS1 1. Was Xiaomi creating a disruptive innovation? Why or why not? Explain using characteristics of disruptive innovation I believe that Xiaomi Inc. is created a disruptive innovation, because it made huge success in sales in smartphone industry through online method, and didn’t use the traditional method of marketing. In addition, it didn’t launch any physical site to work, and it occupied the 3rd largest cellphone in China, and the 6th around the world as one of the biggest smartphone companies around the world. Therefore, Xiaomi disrupted the available market of the same industry, and created new market with value networks, as the quality of the phones manufactured and the low price offered to be sale online. It displaced the current smartphone markets exist, but it didn't stay lone, when new emerging companies started imitating Xiaomi in online sales, so disruptive innovation approved its failure to Xiaomi in the ability of execution and innovation. I believe in the failure that borught by disruptive innovation, because at the beginning it gives benefit for the company adopting it, but didn't sustain its success as in Xiaomi example. And, for Xiaomi it didn't produce it's own hardware and that's leads to the fact that Xiaomi can't produce innovative new products by itself. To conclude, I believe that to garuntee the sucessful of the companies, they should use only sustaining innovation that confirm firms' constancy with less predictable failure...
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...catalogued the hardcover edition of this title as follows: Christensen, Clayton M. The innovator’s dilemma : when new technologies cause great firms to fail / Clayton M. Christensen. p. cm. — (The management of innovation and change series) Includes index. ISBN 0-87584-585-1 (alk. paper) 1. Creative ability in business. 2. Industrial management. 3. Customer services. 4. Success in business. I. Title. II. Series. HD53.C49 1997 658—DC20 96-10894 CIP ISBN 0-87584-585-1 (Microsoft Reader edition) 3 Contents In Gratitude Introduction PART ONE: WHY GREAT COMPANIES CAN FAIL 1 How Can Great Firms Fail? Insights from the Hard Disk Drive Industry 2 Value Networks and the Impetus to Innovate 3 Disruptive Technological Change in the Mechanical Excavator Industry 4 What Goes Up, Can’t Go Down PART TWO: MANAGING DISRUPTIVE TECHNOLOGICAL CHANGE 5 Give Responsibility for Disruptive Technologies to Organizations Whose Customers Need Them 6 Match the Size of the Organization to the Size of the Market 7 Discovering New and Emerging Markets 8 How to Appraise Your Organization’s Capabilities and Disabilities 9 Performance Provided, Market Demand, and the Product Life Cycle 10 Managing Disruptive Technological Change: A Case Study 11 The Dilemmas of Innovation: A Summary The Innovator’s Dilemma Book Group Guide About the Author 4 In Gratitude Although this book lists only one author, in reality the ideas it molds together were contributed and refined by many...
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...would have to meet the following requirements, as specified by Bruce Spenner, HP’s Disk Memory Division (DMD) General Manager: it would have to be ready for market in 12-months, generate $100-million in revenue within 18-months after launch, and make the break-even point within 36-months. However, by June 1994, after only two years of effort, the project’s sales failed to meet the projected forecast and Rick Seymour, the project leader, was left having to make some big decisions. Why did Kittyhawk fail? By applying course concepts, some of the reasons become clear. The Disk Memory Division was essentially an OEM supplier in high-performance markets and had technical competencies in sustaining technology improvements in disk drives. Under Spenner’s leadership, the Division was to become a major player in the growing disk drive market. Spenner’s “big-business fast” strategy is ultimately what caused the project to fail. Since HP was a company that specialized in sustaining technological enhancements, it managed the Kittyhawk project as though it was a sustaining technology, utilizing the RVP Framework (Resources, Values, Processes) as discussed by Christensen. Under such a strategy, HP’s values and processes forced the Kittyhawk Team to accurately forecast potential growth of an emerging PDA (personal digital assistant) market. Committing too early in a single product such as the PDA proved to be fatal to the project, especially since it was...
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...The Challenge of Breakthrough Innovations Table of Contents “The Breakthrough”…………………………………………………………………………………2 Dilemma/ Struggle of Established Firms……………………………………………………………3 Rules for Innovation………………………………………………………………………………….4 Building An Ambidextrous Organization………………………..…………………………………6 Conclusion and Recommendations………………………………………………………………….8 Reference……………………………………………………………………………………………...9 Appendix…………………………………………………………………..………………………...12 “The Breakthrough” One dictionary definition of breakthrough is: "a significant and dramatic overcoming of a perceived obstacle, allowing the completion of a process." But what really makes an innovation a breakthrough (radical, disruptive) one, rather than incremental, from a marketing point of view? According to Boston Consulting Group report, breakthrough innovations are defined as “innovative products that offer consumers significant new benefits through advances in technology, formulations, or applications or through more convenient packaging (Boston Consulting Group (BCG): A Disciplined Approach to Breakthrough Innovations). Christensen (1997) argues that a necessary condition for an innovation to be disruptive is that it “captures new markets in an original and unexpected way.” Academics of marketing literature differ in their opinion about a relationship between a significant new technology and disruptive innovation. Some authors believe that radical innovation goes hand-in-hand with a significant...
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...any structural or cultural element that enables the company to detect discontinuous change early, interpret the consequences for the company, and formulate effective responses to ensure the long-term survival and success of the company (Rene Rohrbeck, 2011) In particular, corporate foresight activities are an increasingly important tool to make better long-term decisions, support innovation activities, strategic planning by identifying the emerging technologies and trends which would create the future scenarios. In brief, corporate foresight can be expected to be a mechanism that enables companies to profit from fundamental change. Today, when we critically evaluate the success of the foresight activities planned and executed in the past we are generally answering the question to learn “ how accurate have been in fore sighting the change” rather than trying to understand if this foresight activity has added any value to the growth or success of the corporate. Consequently, in this study the author sheds light on the value creation from corporate-foresight activities and methods and practices used in different companies for corporate foresight. The paper focuses on the data from 20 case studies to assess if potential value contribution is done through the corporate foresight activities. Corporate...
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...model, Kodak has so far failed to impress consumers and stakeholders alike. Facing stiff competition and shrinking profit margins, Kodak seems not able to find its rightful place in the new digital age. This report will shed some light as to why Eastman Kodak has been struggling for years and how it could overcome the challenges it currently faces. kodak manufacturing plant around 1930 RECENT PAST Kodak being a centennial company, it was necessary to take as much distance as possible when trying to analyze its historical strategic choices. Thus, this study will span 25 years of Kodak’s history without limiting itself on particular time-accurate events but rather by taking the bigger picture into account. Having enjoyed a strong market leadership for decades, at the turn of the century Kodak started to see some intense competition build up in the form of Japanese companies combating to gain a...
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...capital input to increase the scale of operations, or becoming acquired by a larger organization which already has the resources and competence to ensure production, sales, and distribution for the same product. This report focuses on Ecton’s current market position, examines its future choices, and offers a recommendation in light of the prior analysis. Ecton’s Position: In order to understand Ecton’s current position in the ultrasound imaging marketplace, the terms "disruptive technology" and “sustaining technology,” created by Clayton M. Christensen, must be reviewed. As known, what these terms mean, Christensen further defined disruptive technologies into two sub-groupings: low-end disruptive and new-market disruptive. Target market is the major difference between the two categories. Low-end disruptive technology tries to target lower end customers with a lower-cost proposition, while the new-market disruptive try to compete in novel markets which may create new consumer values altogether. Thus, to correctly position Ecton, one must analyze the performance trajectory of conventional technologies in the ultrasound image market for cardiology. Typically, the average customers of the ultrasound cardiology imaging market are cardiologists who need quantitative information (such as velocity accuracy) and the best image quality possible. Established ultrasound imaging companies, such as HP and Acuson, were constantly pursuing existing technology along these guidelines...
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...Disruptive Marketing is Innovative and Boon to the Consumers - a Conceptual Thought Article by Dr. Maruthi Ram. R. Professor and Head – MBA (BU), DSCMIT, Bengaluru Co-Authors Manjunatha.N. Research Scholar, University of Mysore, And Lecturer, NCET, Bengaluru and Shashikala.R. Asst. Professor, DSCMIT, Bengaluru Submitted to DEPARTMENT OF MANAGEMENT PROGRAM CMR INSTITUTE OF MANAGEMENT STUDIES BENGALURU For NATIONAL LEVEL CONFERENCE on “Disruptive Marketing — The Way Forward?” 27th April, 2012 Disruptive Marketing is Innovative and Boon to the Consumers - A Conceptual Thought Introduction Human beings are a very special creation of God. It is this creature that could think compared to the many other creatures in the world. Man can even think of innovative ideas and also implement the same for his convenient living. The good old saying quotes “Necessity is the mother of invention”, has embedded a detailed meaning in it. If we take the example of the invention of the “WEEL” by the ancient man of the Stone Age man we can really understand how innovative in the thinking of Man. The other invention of human beings is the formation of fire. These are a few examples and the list goes on and on. Disruptive Marketing The contemporary world is of the highest civilization this universe has ever witnessed. The innovative mind of human beings has unfolded itself into multifold activity and taken different shapes. In fact the changes that have taken...
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...------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 ------------------------------------------------- Innovation at proctor and gamble Pritesh Tarte- 11906296 Assignment 1 Assignment 1 I INDEX 1.Introduction to Proctor & Gamble ……………………..…….……………….3 2. Innovation at Proctor & Gamble……………………………………………...4 3. Connect & Develop Program & Open Innovation……………………………5 4. Voice of Customer……………………………………………………………6 5. Conclusion……………………………………………………………………7 6. References……………………………………………………………………8 1. Introduction to Proctor & Gamble ( P&G) William proctor and James Gamble established Proctor and Gamble in 1837 as a soap and candle company in Ohio USA. P &G has now developed into global manufacturing and marketing company of branded consumer products. Its markets are over 180 countries including America & Asia regions. Its Business is mainly into five segments. * Fabric & home Care * Beauty * Baby care * Family care * Health care & groom. The fabric care and home care compromises bleach and laundry additives, laundry detergents, pet care, dish care, fabric enhances and surface care products. Beauty care consist of cosmetics, deodorants, hair care & skin care, female personnel cleansing products, salon professional product. Baby care and family care contains products such as baby wipes, diapers, pant towels, tissues and toilet...
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...SHARING CORPS SHOULD COMPANIES build a new competitive advantage BY embracing the SHARING ECONOMY? ECOVALA - December 2013 1 Sharing corps: Should company build competitive advantage by embracing the sharing economy? Ecovala © 2013 This report was produced by the Ecovala in December 2013. If no other source is specified, the contents of this report are under a Creative Commons Attribution – Non-Commercial - Share Alike 3.0 Unported License. You can find the full text of the license in this website. Ecovala Ecovala provides innovative solutions to private and public organisations to accelerate their transition towards sustainability. The organisation offers a wide range of services around sustainability and system innovation: from companies’ environmental assessment to sustainable strategic design, from new green services definition to effective implementation of CSR management. Based in Finland, the organisation is active throughout Europe, relying on an extensive network of like-minded organisations and sustainability experts. www.ecovala.eu Author Erwan Mouazan is director and founder of Ecovala. He develops and implements innovative sustainability solutions both at private and public level. Erwan owns a Master's degree in economics, with a specialization in international management. In the last 9 years, he has worked at international level in environmental NGOS and sustainable development / CSR consultancies. He is currently completing a master's...
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...a. One of the actors who should be interested in innovating for the BOP markets is the MNCs. For these companies large economic benefits can be reached and increased growth, as these markets grow at an incredible speed they can put an end to matured firms stagnation in growth. The purchasing power of the BOP population is higher than imagined usually. As a large company with economies of scale, it should be easy to produce a similar cheap product as the ones already in the BOP markets, but with better quality, thus market penetration can have a steep upward curve. Furthermore, for MNCs to outsource e.g. customer service to BOP market is a way to reduce costs, and it aids to enhance the growth of both the company and the BOP population, as their purchasing power increases. One of the smartest things to offer the BOP markets is connectivity, as this meets one of their most urgent needs head on and thus enables a strong market position for the company bringing it. Connectivity decreases the need for intermediaries, which improves access to the population and costs for the company. (Prahalad and Hammond, 2002) According to Prahalad and Hammond (2002), BOP markets have been the subject to social entrepreneurship and NGOs for several years, trying to solve the demands of the population, so clearly there are similar benefits to be reached by these actors. Small businesses and start-ups also show an interest, as for example in Uganda where a small business offers packages...
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...just don’t know how to grow, and pursuing growth the wrong way can be worse than no growth at all. In The Innovator’s Dilemma, Clayton Christensen showed how companies that focus on high-end products for profitable customers can be blindsided by “disruptive” innovations from new competitors — innovations that target low-end customers seeking cheaper products. In The Innovator’s Solution, Christensen and co-author Michael Raynor show established companies how to create disruptions rather than being destroyed by them — how to turn innovative ideas into new disruptive products that will lead to long-term profitable growth. By Clayton M. Christensen and Michael E. Raynor CONTENTS How Can We Beat Our Most Powerful Competitors? Pages 2, 3 What Products Will Customers Want To Buy? Pages 3, 4 What You’ll Learn In This Summary ✓ How you can beat your most powerful competitors. It all starts with disruption — if you learn the elements of disruption and practice its theories, no competitor will be able to touch you. ✓ What products your customers will want to buy. Learn how to accurately segment your markets (hint — it’s not by demographics like age or gender), help your disruptions grow into healthy businesses, and avoid the market forces that can fool you into making bad decisions. ✓ Who the best...
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...To stay competitive in an ever-evolving landscape and in response to the emerging trend of mobile computing a decade later, HTC should introduce “me-too products” and join the tablet PC bandwagon. My research shows that HTC is likely to remain the major player in smartphone and tablet PC manufacturing if it follow suit. First, tablet PC category is fairly new, HTC does not necessarily need to sustain this “no-me-too” rule as long as its product concepts are no less innovative than the current offerings by competitors. Second, the 3G smartphone market is far from saturated. With HTC’s brand and R&D ability, HTC can vastly improve its market share. Third, Good artists borrow great artists steal--Pablo Picasso To implement and maximize the Me-Too Products strategy, my recommendations are as following: 1. Ensure the originality and creativity of “Me-to Products” • “Learn” from Samsung and “Steal” from Apple • Not necessarily price war involved, stay cool and stay stylish • Disruptive innovation—develop “Textbook” for students and “Solus” for the senior citizens. • Stick to Google Android system 2. Remain the pioneer of mobile computing a decade later • Keep the R&D intensity over 8 • Cooperate with both Google and Microsoft to develop products with Android and Windows systems at a ration of 2:1. 3. Transit from 3G to 4G • Develop the under-developed market, China and India, • Co-brand with China Mobile with a current 500 million...
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