Disruptive Innovation

Disruptive Innovation

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  Disruptive Technologies Prepared by:Korzay Nayman
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  Preview • What isDisruptive Innovation theory? • Discover the Disruptive Innovation • How Samsung Disrupts Apple’s Market? • How Netflix Disrupted Blockbuster? • Disruptive Innovations: Two Ways to Disrupt • Summary of Disruptive Innovation
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  What is DisruptiveInnovation Theory? •Proposed by Christensen •Business strategy • Gain market share • Used by enterprisers, Chief Technology Officers (CTO) and decision makers •Create a new market •Offer cheaper solution Source: interaction-design.org
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  Low-end disrupter Demand ofmarket keep increase Established company keeps innovatingPerformanceofproducts Disruptive Innovations Time Discover the Disruptive Innovation Source: interaction-design.org
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  Samsung Apple Performance Time How Samsung DisruptsApple’s Market? • Existing market: Apple sustains innovation • Advanced technology, high price • iPhone 3, 4, 5 $649 • Existing market: Apple sustains innovation • Advanced technology, high price • iPhone 3, 4, 5 $649 •Low-end disrupter: Samsung offers low price, limited technology solution •Example : “ Galaxy Young” “Galaxy Fame” $50-$100 , smaller screens, less memory capacity, lower-resolution cameras •Low-end disrupter: Samsung offers low price, limited technology solution •Example : “ Galaxy Young” “Galaxy Fame” $50-$100 , smaller screens, less memory capacity, lower-resolution cameras Source: apple.com, online.wsj.com, interaction- IPhone3 4 5
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                    DifferentmeasureOfPe New-market disruption: Compete againstnon-consumption Time Non-consumers Discover the Disruptive Innovation Source: interaction-design.org
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  Performance Time How Netflix DisruptedBlockbuster? Netflix Main Market Blockbuster No late fees Online movie rental Movie Recommendation • Membership in 2002-2010 • Netflix: 288M-> 9.18B • Blockbuster: 1.62B-> 35.1M • Result • Blockbuster filed for bankruptcy • Membership in 2002-2010 • Netflix: 288M-> 9.18B • Blockbuster: 1.62B-> 35.1M • Result • Blockbuster filed for bankruptcy Source: Mashable.com, Innosight.com
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  DifferentmeasureOfPerf Time Performance Time Disruptive Innovations: Twoways to Disrupt Source: interaction-design.org o Low-End Market • Offer cheaper solutions o New Market • Create a new product
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  Summary of DisruptiveInnovation Theory • New business approaches • Help to increase market share • Identify two ways to disrupt the market • Grab a low-end market • Build a new market • Use Disruptive Innovation to succeed • Samsung: Low –end Galaxy phone • Netflix: Develops new a new model home-video delivery
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  References Christensen, C.M. (n.d.).Disruptive innovation. Retrieved from http:// www.interaction-design.org/encyclopedia/disruptive_innovation.html Christensen, C.M. (2003). Six keys to building new markets by unleashing disruptive innovation. Retrieved from http://hbswk.hbs.edu/item/3374.html Christensen, C.M. (2007, May-June). Disruption Drives Growth: Ten Years After ‘The Innovator’s Dilemma’ . Strategy and Innovation. Retrieved from http://www.innosight.com/innovation-resources/loader.cfm? csModule=security/getfile&pageid=2513 Kim, Y.H. (2013, March 21). Samsung covets low-end of smartphone market, Too. Retrieved from http://online.wsj.com/news/articles/SB10001424127887324373 204578373843533049824 White, C. (2011, October 9). 7 Disruptive Innovations that turned their markets upside down. Retrieved from http://mashable.com/2011/10/09/7-disruptive-in