...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 new technology (Veryzer et al. 1998, O’Conner et al. 1998). Although the notion that significant new technology is an unavoidable condition of radical innovation can be infirmed by Sony Walkman example. Sony Walkman was revolutionary in its product concept but fundamentally new technology was not used in its creation (Mascitelli 2000). Mascitelli in line with other authors (Lynch 1998)...
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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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...ENTRY 2, DISRUPTIVE INNOVATIONS In this essay I will describe and explain the causes and consequences of disruptive innovation. Firstly I will write about what dualism is, why it is important and how to achieve it. I will continue with describing difficulties, which may occur on a company’s path towards it, namely overshooting and inability to recognize the start of a new industry cycle. Further on, I will go deeper in the reasons, why incumbents fail to recognize the new entrants on the market, specifically “attack from below” and other discontinuous patterns of change. In the end I will describe some of the responses taken by established companies to disruptive technologies. In today’s world when competition is such a big factor, organizations must face the paradoxical challenges of "dualism" to be able to compete in long term. Dualism means being able of functioning efficiently today while innovating effectively for tomorrow. To compete in the long term, every corporation must understand and manage both sets of concerns simultaneously. (Paap, Katz, 2004) If the companies do not manage to face the challenges of dualism, they make themselves potential victims of disruptive technologies. Hence, achieving dualism means successfully surviving disruptive technologies. The first step a company has to make towards that is recognising them, but why it is so difficult for incumbents to recognise disruptive technologies? A limitation companies face in process of achieving...
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...Chapter 5 Review Questions 1. Describe systems analysis and the major activities that occur during this phase of the systems development life cycle. During systems analysis, you determine how the current information system functions and assess what users would like to see in a new system. Requirements determination, requirements structuring, and alternative generation and selection are the three primary systems analysis activities. 2. What are some useful character traits for an analyst involved in requirements determination? Requirements determination is a crucial part of the systems development life cycle; therefore impertinence, impartiality, relaxing constraints, attention to details, and reframing are important characteristics. 3. Describe three traditional techniques for collecting information during analysis. When might one be better than another? Traditional techniques for collecting requirements include interviewing and listening, observing users, and analyzing procedures and other documents. Interviewing and listening involve talking with users individually or as a group to discover their views about the current and target systems; it also involves carefully preparing an interview outline and guide before conducting the interview. Interviews are best done when only a few people are involved, when you need open-ended questions or the questions vary from individual to individual, or when a more personal method is needed. 4. What are the general...
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...using disruptive or sustaining technology to run their businesses? Facebook, Myspace, and LinkedIn are using disruptive technology to run their businesses. Disruptive technology disrupts the existing market and displaces the technology and features that are already in place. Sustaining technology makes continuous improvements to existing technologies in order to improve the bottom line. When Myspace was introduced in 2003, it was the first real social networking site. It broke the mold of how people could communicate, find “lost” friends, and keep track of friends and family members. Once they became successful, they started settling into a sustaining technology mode in order to improve their bottom line. Mark Zuckerberg and friends started Facebook in 2004. Instead of aiming for sustaining technology, they opted to go for the disruptive technology. They listened to suggestions from users and offered what users wanted, not what managers thought users wanted. By allowing users to customize their personal Facebook pages in virtually any way they wanted (as long as it is not considered inappropriate, threatening, or dangerous), Facebook quickly gained fans and users. They soon surpassed the success and level of users of Myspace. Knowing exactly what was done to surpass Myspace; Zuckerberg has kept Facebook in the disruptive technology mode. This keeps interest high, users happy, and the money rolling in. As long as Facebook stays on the cutting edge of disruptive technology...
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...Training, Simulation, and Education Conference (I/ITSEC) 2008 Five Forces Driving Game Technology Adoption Roger D. Smith U.S. Army Program Executive Office for Simulation, Training, and Instrumentation Orlando, FL roger.smith14@us.army.mil ABSTRACT The computer gaming industry has begun to export powerful products and technologies from its initial entertainment roots to a number of “serious” industries. Games are being adopted for defense, medicine, architecture, education, city planning, and government applications. Each of these industries is already served by an established family of companies that typically do not use games or the technologies that support them. The rapid growth in the power of game technologies and the growing social acceptance of these technologies has created an environment in which these are displacing other industry-specific computer hardware and software suites. This paper introduces five specific forces that compel industries to adopt game technologies for their core products and services. These five forces are computer hardware costs, game software power, social acceptance, other industry successes, and native industry experimentation. Together these influence the degree and rapidity at which game technologies are adopted in a number of industries. The military simulation industry is just one of the many industries that are being impacted by these technologies and the five forces are affecting it just as they are many other industries. The paper...
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...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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...DARE TO DISRUPT!! DARE TO DISRUPT!! Theme: Means to tackle disruptive innovation Name: Prasun Kumar Das PGPM Participant, Batch 1114 Information Management S. P. Jain Institute of Management & Research Mobile - +91 7506793925 DISRUPTION – The New Age Competitive Strategy Everything is fair in love and war; and competition in a business environment is like a cold war. Innovation has always been the major strategy used by businesses around the world to stay competitive. The traditional paradigm of innovation was to improve the performance of the existing technology, thereby steeping up the performance trajectory. However, value creation for customers may be much simpler than high performing technology. There is always a threshold level till which customers can absorb and appreciate which the traditional paradigm fails to address. This has lead to a gradual shift in paradigm, over the last five decades, from a continuous performance improvement to that of something called ‘Disruption’. Clayton Christensen coined this term and today it has become a big buzzword. He identified ‘Disruptive Innovation’ as a product or service, so compelling in nature that everyone rapidly abandons their current way of doing things to this new approach. IT has been the big enabler of this disruption. The fundamental aspect of disruption is to use the right benchmark, which becomes additive with time. When that happens, we find entire product lines – even the whole market...
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...Dilemma When New Technologies Cause Great Firms to Fail CLAYTON M. CHRISTENSEN Harvard Business School Press Boston, Massachusetts 2 Copyright © 1997 by the President and Fellows of Harvard College All rights reserved The Library of Congress has 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...
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...more than one way to tackle a problem and the ability to make the right choice comes with experience. This experience enables the researcher to construct creative research designs that can solve marketing problems more effectively. It is also true that some customers do not have the foresight or may be unwilling to share some information or experiences about a product or service for personal reasons. Sometimes the survey research technique may be the obstacle to appropriate responses like if there is a problem with the wording of the questions where “leading”, “ambiguous” , “unanswerable”, or “non-exhaustive” questions may create problems with the research outcome. Another consideration, especially common for radically or completely disruptive innovations is that the innovations is several years ahead of the current generation of customers and in addition, the entrepreneur and his invention have to fight the entrenched, powerful and...
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...Blu-ray rental game by raising the prices of their DVDs and Blu-rays. Netflix is spending more money to increase the size of their online library for streaming. The two companies that are battling it out to be the king of the rental industry are Redbox, a company owned by Coinstar Inc., and Blockbuster. This paper will focus on how Redbox entered the market through Disruptive Innovation and what Redbox needs to do to better position themselves in a volatile market place. I will also look at the mistakes Blockbuster made and offer solutions on how Redbox can avoid the organizational decline that Blockbuster experienced. I use Wall Street Journal and peer-reviewed academic journals for my references. To understand the full scope of how Redbox entered the market I will look at the Disruptive Innovation Theory. Disruptive Innovation Theory is a term that was coined by Clayton Christiansen. Clayton Christiansen is a professor at Harvard Business School. He has written a number of books on the subject. In an interview done by Smith, Christensen defines disruptive Innovation Theory as, “a technology that brings a much more affordable product or service that is much simpler to use into a market. And so it allows a whole new population of consumers to afford to own and have the skill to use a product or service, where as historically, the ability to access was limited to people who have a lot of money or a lot of skill.” (Smith, September, 1 2007, p.1)...
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...future and thus these foresight activities play a crucial role in today’s decision making process within the organization which would influence the future survival, growth and success of the corporate.(Daheim, C & Uerz G. 2006) Corporate foresight has been defined as an ability that includes 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...
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...An analytical framework for evaluating e-commerce business models and strategies Chung-Shing Lee The author Chung-Shing Lee is Director of Electronic Commerce Resource Center and an Assistant Professor of Information Systems and Technology Management in the School of Business at Pacific Lutheran University, Tacoma, Washington, USA. Keywords Internet, Economy, Innovation, Strategy Abstract Electronic commerce or business is more than just another way to sustain or enhance existing business practices. Rather, e-commerce is a paradigm shift. It is a ``disruptive’’ innovation that is radically changing the traditional way of doing business. The industry is moving so fast because it operates under totally different principles and work rules in the digital economy. A general rule in e-commerce is that there is no simple prescription and almost no such thing as an established business or revenue model for companies even within the same industry. Under such conditions, an analytical framework is needed to assist e-commerce planners and strategic managers in assessing the critical success factors when formulating e-commerce business models and strategies. This research develops an analytical framework based on the theories of transaction costs and switching costs. Both demand-side and supply-side economies of scale and scope are also applied to the development of this framework. In addition, e-commerce revenue models and strategies are also discussed. Based...
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...revenue. By providing people seeking accommodation with an alternative to hotels, Airbnb’s platform also directly competes for a chunk of the hotel hospitality business. In this essay, we will argue that Airbnb will continue being a successful business, possibly at the expense of incumbents focused on price differentiation, such as Premier Inn1. In order to support this argument, we will start by analyzing Premier Inn and it’s competitive environment using Porter’s2 article as a main point of reference. We will then focus on Airbnb, and why the company will continue being successful in the next years. First we will see how the company has advantageously positioned itself to ride current economic and technology trends, setting up its future success. We will also look at Airbnb’s disruptive innovations on both the supply (opportunistic, non-professional hosts) and demand side (price conscious over-served guests), and how these were stepping to access to higher customer segments. Finally we will argue that Airbnb has found a distinctive set of activities that has put the company in a place of it’s own, although competition is rapidly growing. * * * Let us start by looking at one of the UK biggest budget hotel chains: Premier Inn. Premier Inn is one of four hotel chains that hold 80% of the budget hotel market, making it a concentrated and therefore high-barriers to entry market. What’s more, as any hotel it is a very...
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...1.) George Mason University is innovative and entrepreneurial in spirit and utilizes its multi-campus organization and location near our nation’s capital to attract outstanding faculty, staff and students. George Mason will: ▪Educate the new generation of leaders for the 21st century—men and women capable of shaping a global community with vision, justice, and clarity. ▪Encourage freedom of thought, speech, and inquiry in a tolerant, respectful academic setting that values diversity. ▪Provide innovative and interdisciplinary undergraduate, graduate, and professional courses of study that enable students to exercise analytical and imaginative thinking and make well-founded ethical decisions. ▪Nurture and support a highly qualified and entrepreneurial faculty that is excellent at teaching, active in pure and applied research, capable of providing a broad range of intellectual and cultural insights, and is responsive to the needs of students and their communities. ▪Maintain an international reputation for superior education and public service that affirms its role as the intellectual and cultural nexus among Northern Virginia, the nation, and the world. We feel that this mission statement is somewhat broad. George Mason should make an effort to be more specific about their mission statement. 2. Identify your customers. What are their needs? (p. 22) How do you assess good/poor quality in this organization? The customers of George Mason University are its students. In competition...
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