BDT T4

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OM
IS

Fostering an
WE ARE
BUSINESS
Innovative Organization
Business Driven Technology
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Disruptive Technologies
What is disruptive technology?
What is sustaining technology?
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Disruptive Technologies
Disruptive Technologies
A new way of doing things that initially does not
meet theneeds of existing customers.
Sustaining Technologies
Produces an improved product customers are eager
to buy,such as a faster car or larger hard drive.
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Focusing on the Unexpected
? One of the biggest forces changing business is
the Internet
? Organizations must me able to transform as
markets, economic environments, and
technologies change.
? Focusing on the unexpected allows an
organization to capitalize on the opportunity
for new business growth from a disruptive
technology.
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Focusing on the Unexpected
Four Laws of Disruptive Technologies
1. Organizations depend on customers and
investors for resources Successful
organizations find it difficult to allocate
resources for products not inline with mainstream
demand
2. Small markets do not meet the growth needs of
large organizations Large organizations
typically wait until new markets are large
enough to be more interesting
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Focusing on the Unexpected
3. It is difficult to analyze a market that does
not exist It is difficult to gain the essential
first-mover advantage when nothing is known about
the potential market
4. Technology supply may not equal market demand
Companies who want to stay on top need to be
aware of what their mainstream customers value at
each stage of a products life cycle, and be
prepared to introduce more convenient,
lower-priced products into establised markets
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Focusing on the Unexpected
Companies that capitalize on disruptive
technologies

• Company Disruptive Technology
• Charles Schwab Online brokerage
• IBM Mini computers, personal computers
• Intel Low end microprocessors
• Oracle Database software
• Sony Transistor based consumer electronics

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Any Questions?