Project Technology Management
Added on 2021-04-21
15 Pages4036 Words55 Views
|
|
|
Running head: ASSIGNMENT ON TECHNOLOGY MANAGEMENTAssignment on technology managementName of the studentName of the UniversityAuthor note
1ASSIGNMENT ON TECHNOLOGY MANAGEMENTIntroductionThe term disruptive innovation was introduced by Clayton Christensen in the year of1997, in his book named ‘The Innovator’s Dilemma’. Christensen stated that the term is grosslymisunderstood and it is generally applied to those businesses, which are actually not disruptive.Finally, in the year of 2105, Christensen with his co-authors broke down the concept ofdisruptive innovation (Johnson, Christensen and Kagermann 2008). The theory suggests theconcept through which an innovation changes an existing industry. The changes are brought byintroducing the affordability, convenience, simplicity and accessibility where complicationexists. Initially, the concept of disruptive innovation is established in a market where themembers of the industry may consider it as unattractive however, the idea of the disruptiveinnovation will gradually change or redefine the whole industry. A perfect example would be thepersonal computer. Before the introduction of personal computer, mainframe computers andminicomputers had been dominating the industry of computing. The mainframe computers andthe minicomputers were available at a price around $200,000. The computers required engineersin order to operate it. The scenario was changed when Apple brought the disruptive innovation inthe computing g industry. It started selling the personal products in the year of late 1970s and theyear of early 1980s. Initially, the personal computer manufactured by Apple, was not able to becompete with the mainframe computers and the minicomputers (Johnson, Christensen andKagermann 2008). The performance of the product of Apple was not as good as the mainframeand minicomputers. However, the customers of the Apple Company did not swift to themainframe and minicomputers as they were very expensive to afford. Knowing that theminicomputers and mainframe computers would not be able to as good as the mainframe and
2ASSIGNMENT ON TECHNOLOGY MANAGEMENTminicomputers, they stick to the company, which moved the company to bring innovation inorder to improve the customer experience. The gradual improvement of the innovation made thepersonal computer more efficient as well as more affordable which had completely eliminatedthe mainframe computers and the minicomputers from the computing industry. Christensen’stheory of disruptive innovation is not limited to the industry of technology but it can also beimplemented to other sectors as well. According to Christensen, disruptive innovation not onlymakes the products better but also makes the products more acceptable along with affordable.This study mainly sheds light on how service industry brought revolutionary changes in itself byadopting innovation. Hence, the study gave examples of some well known companies likeAmazon and Dominos as how they used innovation and brought change while setting examplesfor other companies. Christensen’s theoryThe concept of disruptive innovation which is generally considered in the business sectoris completely different from the theory of Christensen. The term disruption is grossly perceivedas the interruption of the process. Whereas, the definition of the term disruption denotessomething new that enters in the industry and has the possibility of becoming successful. Christensen elaborates the differences between the low-end disruption and the new-market disruption. As per the statement of Christensen, the term low-end disruption eludes to thebusinesses which enters at the bottom of the industry with an aim to serve average yet little betterthan what the existing companies serve to their customers. These low-end disruptive businesseslower the profit margin of the other existing companies and become a threat to the incumbents.The existing companies in turn focus on achieving more profit margins within the industry.
3ASSIGNMENT ON TECHNOLOGY MANAGEMENTOn the other hand, the new-market disruption eludes to the businesses which steps in thedirect competition against the non-consumption within the lower margin industry in the market.Like the low-end disruptive businesses, new-market disruptive businesses also offer productswhich are average yet better than the products offered by the existing brands. The primarydifferences between the two kinds of disruption lie in the factor that new-market disruptivebusinesses prioritize the undeserved customers while the low-end disruptive businesses aim tothe over served customer area. Christensen’s theory described disruption as the process more than just a product orservice. While writing in the Harvard Business Review, he stated that it depends on time thatwhether the new disruptive business model of the innovator will succeed or not. He thenexemplified Netflix. When Netflix fist came in the market, its strategy was such that did not poseany threat to the Blockbuster at a first space. It started providing DVDS to its customer when itfirst launched in the market. However, it could not satisfy the customers as the requirement ofthe customers did not meet. The customers rather wanted get the newly released moviesinstantly. However, based on the demand of the customers, Netflix improved its version and wasable to snatch away the customer hold of Blockbuster even before they could take adequatemeasure to keep a hold on their customers. When a disruptive business enters in the industry, it must be aware of the current markettrends and the customer requirement as well. It is not necessary that every disruptive businesswill be successful in achieving the target market. The companies need to choose their rivals andmake plans accordingly in order to address the market trend. In order to bring the disruptiveinnovation in the business, the companies need to understand first what the term is actually
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Innovation and Sustainable Business Developmentlg...
|9
|2075
|485
Key Drivers of Disruptive Innovation in Global Business Environmentlg...
|10
|4218
|379
Leadership Lessons from Steve Jobs: Biography, Circumstances, Power and Stylelg...
|9
|2204
|280
Managing Innovationslg...
|18
|3433
|438
Current Practice Analysis for Cloud Computing in an Organization: Annotated Bibliographylg...
|7
|1759
|375
Innovation Theory and its Application in Airbnblg...
|14
|4045
|437