DISRUPTIVE TECHNOLOGY

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DISRUPTIVE TECHNOLOGY

• By
• Anita Hector
• And
• Ken Cormier

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Description of Disruptive Technology

• Breakthrough product or process related
  technology that destroys the competencies of
  incumbent firms in an industry
• High-End Disruption-(New Market) VCRs enabling
  people to rent vs Movie Theaters
• Low-End Disruption- (Target least Valuable
  Customers)-
• Hybrid Disruption-some combination of both

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Double S Disruptive Technology Curve
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History of Disruptions

• Vinyl Record and Tapes
• Slide rules and calculators
• Carburetors to fuel injection

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Importance to Kodak Business Strategy

• To Contend with Disruptive Technology Clayton
  Christensen a Rhodes Scholar and Professor at
  Harvard Business School suggests three
• Value Proposition
• Profit Formula
• Compatible Business Model

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Value Proposition

• Customers valuing digital at low end

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Profit Formula

• Kodak not paying attention to low end focusing on
  established film customers and competencies

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Compatible Business Model
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Key Findings and Insights

• Graph From Claytons article how to assess
  Disruptive techs

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Key Findings and Insights

• Determine whether disruptive or sustaining
• Focus is on products target customers and what
  they want to buy ie, Kodak focused on film
  consumers not digital photography.

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Key Findings and Insights

• Define strategic significance

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Key Findings and Insights

• Locate initial market for disruptive technology

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Key Findings and Insights

• Place responsibility for building disruptive
  technology in independent organization

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Key Findings and Insights

• Keep disruptive organization independent

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