Concentrated Knowledge™ for the Busy Executive • www.summary.com
Vol. 25, No. 11 (3 parts) Part 1, November 2003 • Order # 25-26
FILE: STRATEGIC MANAGEMENT
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Creating and Sustaining Successful Growth
THE INNOVATOR’S SOLUTION
THE SUMMARY IN BRIEF
Roughly one company in every ten is able to sustain the kind of growth that translates into an above-average increase in shareholder returns over more than a few years. Once a company’s core business has matured, the pursuit of new platforms for growth entails daunting risk — to put it simply, most companies 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
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The Disruptive Innovation Model l Prog ress
Pace o in Sustain g Inno vation s
f Te
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Performance That Customers Can Utilize or Absorb Disruptive Innovations
Range Of Performance That Customers Can Utilize
Time
Three Elements of Disruption
There are three critical elements of disruption (these were first identified in the book, The Innovator’s Dilemma and are illustrated in the chart at right): ● A rate of improvement that customers can fully use or absorb. This is represented by the dotted line. ● A rate of improvement that goes beyond what customers can fully use or absorb. The pace of technological progress almost always outstrips the ability of customers in any given tier of the market to use it, in part because companies keep striving to make better products that they can sell for higher profit margins to their most demanding, high-end customers. This rate of improvement is shown by the two solid lines in the chart. ● A distinction between sustaining and disruptive innovation. A sustaining innovation targets those demanding, high-end customers with better performance than previously available, whether that performance is an incremental improvement or a breakFor Additional Information on how to know whether your idea has disruptive potential, go to: http://my.summary.com
through, leapfrog-over-competitors variety. Disruptive innovations do not attempt to bring better products to
Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a
The second objective is to find disruptive innovations that threaten the product roadmap and which, ideally, can be incorporated into corporate strategy to yield a competitive advantage [3].
A company has a future because it provides an important means of knowledge generation. According to Brown and Duguid (1998), it plays an important role in the development and circulation of complex knowledge in society. Grant (1996) introduces four mechanisms for integrating specialized knowledge as above:
The author Joelle Charbonneau wrote the book The Testing. An amusing fact about Joelle is that she taught many students how to sing. In an article Joelle states “My students are a wonderful source of inspiration and continue to teach me life while I teach them about singing” (Charbonneau… New York Times). The Testing by Joelle Charbonneau is about a girl named Cia who is selected to go through a testing program to test her knowledge and see if she can attend a certain college. Cia has many roadblocks, but that does not stop her from doing her best. People should recommend this book because of its connection to the article titled New Surveillance Technology. The message of this book is that knowledge is power, so don’t betray it.
An article called “, Knowing When To Reinvent,” was composed by three company leaders, one being a CEO, to inform other company leaders about potential fault lines that have caused many companies to have downfalls. However, to prevent economic downfalls, the authors compiled a list of the downfalls and how to avoid them. Many companies have taken what seemed to be drastic measures to be successful in a changing marketplace. The thesis outlines the five fault lines within the article which are: customer needs, performance metrics, industry position, business model, and talent and capabilities (Bertolini et al., 2015).
Disruptive technology is a new way of doing something that initially does not meet the needs of existing customers. This type of technology tends to open new markets and destroy old ones. While, a sustaining technology produces an improved product that customers are eager to buy. This technology provides better, faster and cheaper products on established markets.
On this second practice test, I improved greatly from the last practice test. My strongest subject was math, and my weakest subject was science. My composite score was a twenty-eight. Since I reached the benchmark scores in every category, I should have a seventy-five percent chance of getting a C or higher in my college courses of English composition, college algebra, social studies, and biology. This means that I have mastered the skills that are needed to succeed in my postsecondary education, which greatly influences my future.
Poems and short stories are pieces of literature that have been around for millions of years, both producing major talented writers, and also some famous authors a well. Short stories and poems are vastly different but share some common traits and ability’s to gain a reader’s attention and embrace their attention until the point of the story is made and completed. When comparing the two different types of literature style, form, and content all come into play in having similarities and differences in the text. Poems typically are short and direct to the point, tending to have a rhythm of words, whereas short stories usually are direct based text
“The Innovator’s Dilemma” describes Christensen’s theory of disruptive innovation. But, his theory isn’t essentially briefed as one would assume. Her opinion is that case studies (like disk-drive industry) were chosen by the author to demonstrate his perception, as well as subjectively distinct success metrics.
Harvard professor Chris Argyris promoted the concepts of espoused theories of action and theories-of-use. Espoused theories of actions reflect what people say governs their behavior, while theories-of-use reflects how they actually behave.
Jim Collins and his research team of 20 compared and contrasted how many companies made the leap to greatness and how other companies didn’t. Based on bundles of evidence and a large quantity of data, he and his team uncovered how
Tidd et al (2000) states, “the innovation is a business process of revolving opportunity into new ideas and of putting these into widely used practice. In term of the nature, there are five major types of innovations: novelty, competence shifting, complexity, robust design and continuous improvement. While in term of the extent of change, innovations can be divided into incremental, radical and
Usability testing is a technique used in user-centered interaction design to evaluate a product by testing it on users. This can be seen as an irreplaceable usability practice, since it gives direct input on how real users use the system.[1] This is in contrast with usability inspection methods where experts use different methods to evaluate a user interface without involving users.
The case study of “Disruptive Innovation” is a studying that concentrated and described an innovation as the affordable price products for people in the entire world to use. This research indicated about certain disruptive innovations such as the laptops, the routers, smartphones or desktop photocopier that are the substitutions for other companies’ commodities. Furthermore, Porter five forces strategy is a structure to examine the level of competition in today’s market and to make an improvement for the business strategy. Likewise, these forces are including: the threat of new entrants, when suppliers have power, when customers have power, the threats of substitutes and intensity of competitive rivalry. Therefore, this report was assigned to analyze Porter’s five forces strategy for applying toward the case of disruptive innovations and demonstrating on how it affects or relates to most of the companies worldwide.