In The Innovator’s Dilemma, Professor Clayton Christensen asks the question: Why do well-managed companies fail? He concludes that they often fail because the very management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop and adapt to the disruptive technologies that ultimately steal away their markets.    One of the hallmarks of disruptive technologies is that initially they underperform the current technology on the attributes that matter most to mainstream customers. Only a few people value the disruptive technology in the beginning.    What markets today are being threatened by emerging disruption that seemed unimportant when first introduced? What established industries, companies or products may be in danger? What do you foresee happening?   Christensen argues that “disruptive technology should be framed as a marketing challenge, not a technological one.” Executives of companies in established industries have choices: To ignore disruptive technologies and hope they die To develop their own technology and slowly introduce it To develop their own technology and aggressively market it Leaders in established companies often face barriers to innovation. Give examples of companies, the barriers they face, and their responses that illustrate the 3 choices. How would you have reacted in the scenarios you provide? Why?

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
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Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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In The Innovator’s Dilemma, Professor Clayton Christensen asks the question: Why do well-managed companies fail? He concludes that they often fail because the very management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop and adapt to the disruptive technologies that ultimately steal away their markets. 

 

One of the hallmarks of disruptive technologies is that initially they underperform the current technology on the attributes that matter most to mainstream customers. Only a few people value the disruptive technology in the beginning. 

 

What markets today are being threatened by emerging disruption that seemed unimportant when first introduced? What established industries, companies or products may be in danger? What do you foresee happening?

 

Christensen argues that “disruptive technology should be framed as a marketing challenge, not a technological one.” Executives of companies in established industries have choices:

  1. To ignore disruptive technologies and hope they die
  2. To develop their own technology and slowly introduce it
  3. To develop their own technology and aggressively market it

Leaders in established companies often face barriers to innovation. Give examples of companies, the barriers they face, and their responses that illustrate the 3 choices. How would you have reacted in the scenarios you provide? Why?

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