Innovators Dilemma Explained

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Why does market share often change in an S-curve pattern

Innovators Dilemma Explained

  1. 1. The Innovator’s Dilemma Explained <br />Click Play to See Presentation<br />10 Slides Total<br />Product Performance<br />Time<br />
  2. 2. Progress of<br />sustaining<br />technology<br />Steady Improvement in Base TechnologyRaises Product Performance Over Time<br />Product Performance<br />Time<br />
  3. 3. High-end<br />performance<br />demand trend<br />Customer’s Expectations Increase<br />Product Performance<br />Low-end<br />performance<br />demand trend<br />Time<br />
  4. 4. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />At Time T1 Product is Just Good Enough<br />Product Performance<br />Low-end<br />performance<br />demand trend<br />Good, but….<br />T1<br />Time<br />
  5. 5. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />Supplier Makes Improvements With <br />Existing Technology<br />Product Performance<br />Much Better!<br />Low-end<br />performance<br />demand trend<br />Good, but….<br />T1<br />Time<br />T2<br />
  6. 6. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />At T3, Supplier Continues With What Works,<br />But Product Performance Exceeds Needs <br />Great!<br />Product Performance<br />Much Better!<br />Low-end<br />performance<br />demand trend<br />Good, but….<br />T1<br />Time<br />T2<br />T3<br />
  7. 7. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />Disruptive Innovation Occurs at T2, <br />No Perceived Threat - Does Not Meet Needs <br />Progress of<br />new technology<br />Great!<br />Product Performance<br />Much Better!<br />Disruptive<br />innovation<br />Low-end<br />performance<br />demand trend<br />Good, but….<br />T1<br />Time<br />T2<br />T3<br />
  8. 8. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />By T3 the Disruptive Supplier Meets Needs,<br />Base Tech Supplier Stuck on Old Technology <br />Progress of<br />new technology<br />Great!<br />Product Performance<br />Much Better!<br />Disruptive<br />innovation<br />Low-end<br />performance<br />demand trend<br />- Good, but….<br />T1<br />Time<br />T2<br />T3<br />
  9. 9. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />At T4, Innovator Hits the Sweet-spot<br /> Legacy Supplier Now Too late to Change <br />Progress of<br />new technology<br /> Super<br />Great!<br />Product Performance<br />Much Better!<br />Sweet Spot<br />Disruptive<br />innovation<br />Low-end<br />performance<br />demand trend<br />Good, but….<br />T1<br />Time<br />T2<br />T3<br />T4<br />
  10. 10. Progress of<br />sustaining<br />technology<br />High-end<br />performance<br />demand trend<br />This Leads to Rapid Market Share Gain by the Innovator at T4 and the S-Curve Pattern<br />Progress of<br />new technology<br /> Super<br />Great!<br />Product Performance<br />Much Better!<br />Sweet Spot<br />Disruptive<br />innovation<br />Low-end<br />performance<br />demand trend<br />Good, but….<br />S-Curve Pattern<br />Original supplier market share High Low<br />Disruptive tech supplier share Low High<br />T1<br />Time<br />T2<br />T3<br />T4<br />

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