Exploring the Limits of the Technology SCurve

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Exploring the Limits of the Technology S-Curve

• Clayton M. Christensen

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What are We Going to Tell You?

• Technology and Change
• S Curves as a Strategy Tool
• Component Innovation
• Architecture Innovation
• Article Points
• Article Summary
• Critical Analysis

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Technology

• Process, technique, or methodology
• Embodied in a product design or
  manufacturing/service
• Transforms inputs of labor, capital, information,
  material, and energy into outputs of greater
  value

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Technology Change

• A change in inputs, processes, techniques, or
  methodologies
• Improves the measured levels of performance of a
  product or process

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Technology Growth Phenomena

• The S curve pattern
• The S curve Phenomena is interesting in that it
  does not decay
• Limited in its ultimate performance by chemical
  and physical laws
• S-Curve is based on Fosters work

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Clayton Christensens Articles

• First one Covered S-curve relation to component
  technology developments
• Little to no advantage to industries first in
  adopting new component technologies
• This article Covered S-curve relation to
  architectural technology developments
• Critical advantage to industries first in
  adopting new architectural technologies

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Component Vs Architectural

• Component change
• The incremental change of an individual part of a
  system. Often change is pushed or ridden out on
  the s-curve by going beyond perceived physical
  limits.
• Architectural change
• Rearrangement of the way components relate to
  each other within a products system design.

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Christensons 4 Propositions

• They can help explain why alternative
  technologies succeed or fail
• Aid in component and architectural technology
  development
• Firm versus industry
• Incumbents vs. Attackers
• Incumbent firms _ component - Follow S Curve
• Attackers - architectural change Follow S Curve
  part 2

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Wheres the Advantage?

• Early adopting firms held a competitive advantage
  over incumbent firms when applying them to new
  markets.
• New architecture initially lagged behind
  incumbent firms new component in the established
  market demands
• The new architecture met the needs of the new
  market demands (different application)
• The new architecture (once developed) quickly
  overtook the incumbent firms component advantage
  in the established market.

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Architectural Substitution Process?
Source Christensen, C.M. et. all. (1992).
Production and Operations Management Society.
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Market Application Matters in Architectural
Innovation
Source Christensen, C.M. et. all. (1992).
Production and Operations Management Society.
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Common Misconceptions S-Curve Explanation

• S Curves as a product versus technology effort
• S-Curves are a phenomenon showing the typical
  path of product performance in relation to
  investment in RD.
• Important to understand that this is
  technological advances versus product advances
• Some authors have a difficult time

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Whats There not to like?
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What did we Tell You About?

• Technology and Change
• Component Innovation
• Architecture Innovation
• S Curves as a Strategy Tool
• Common Miwsconceptions
• Did I like it