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Turun kauppakorkeakoulu  Turku School of Economics
WHO IS WATCHING CLOUD – ANGELS OR
DEMONS?
Tingting Lin
DISRUPTED DISRUPTIONS
Lessons from Potential Disruptive
Innovations that barely disrupted
Abayomi Baiyere
University of Turku, Finland speak2ab
Abayomi Baiyere
This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy & Society,
Dublin, Ireland on 8-11 June 2014.
Turun kauppakorkeakoulu  Turku School of Economics
BACKGROUND
Introduction Methodology Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
BACKGROUND
Introduction Methodology Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
Turun kauppakorkeakoulu  Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
Turun kauppakorkeakoulu  Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
Turun kauppakorkeakoulu  Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
However…
When really can an innovation
be considered a disruptive Innovation?
Potential DI Disrupted DI
Turun kauppakorkeakoulu  Turku School of Economics
OBJECTIVE
Introduction Methodology Results & Analysis
Discussion &
Contributions
key attributes that characterizes disrupted disruptions
and potential disruptive innovations…
lessons can be extracted from DD & PDI for managers
facing threats of disruptive innovation…
Identify and Inform about
Turun kauppakorkeakoulu  Turku School of Economics
DATA SOURCE
MethdodologyIntroduction Results & Analysis
Discussion &
Contributions
Literature Review | Expert Interviews | Archival Data
Turun kauppakorkeakoulu  Turku School of Economics
CONCEPTUALISING
POTENTIAL DI
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Nature of Disruptive Innovations
Difficult to label ex-ante It is a relative phenomena.
PotentialDisruptiveInnovation
Turun kauppakorkeakoulu  Turku School of Economics
CONCEPTUALISING
DISRUPTED DISRUPTION
Introduction
Results & Analysis Discussion &
Contributions
Methodology
PotentialDisruptiveInnovation[PDI]
Disruptive Innovation
[DI]
Disrupted Disruption
[DD]
Turun kauppakorkeakoulu  Turku School of Economics
DIFFERENTIATING
PDI, DD & DI
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Turun kauppakorkeakoulu  Turku School of Economics
DIFFERENTIATING
PDI, DD & DI
Introduction
Results & Analysis Discussion &
Contributions
Methodology
DIDifferentiationFramework
Turun kauppakorkeakoulu  Turku School of Economics
PDI CASE EXAMPLE
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Mobile-DrivenInnovation
Turun kauppakorkeakoulu  Turku School of Economics
PDI CASE EXAMPLE
Introduction
Results & Analysis Discussion &
Contributions
Methodology
1 - Directly valued by high paying customers 2 - Valued as a supplement rather than a substitute 3 - Creates new market
4 - Appeals directly to same customers 5 - Not necessarily simpler/ more convenient but rather different. 6 - Serves existing consumers
7 - Not necessarily simpler however cumbersome to mount 8 - Adoption currently in the infancy stage
Turun kauppakorkeakoulu  Turku School of Economics
DD CASE EXAMPLE
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Google Docs
Nintendo Wii
Tata Nano
Minicomputers
Turun kauppakorkeakoulu  Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
Proposition D (Direct competition): If the initial offering of a
Potential Disruptive Innovations is not ‘directly competing’ for the
mainstream customers, the chances of ultimately becoming
disruptive is higher.
Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
Proposition I (Ignore): If a potential disruptive innovation is
acknowledged 'early and not ignored', the likelihood of it
significantly disrupting the market position of the responder can
be limited.
Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
Proposition V (Velocity of adoption): The 'velocity of adoption' of a
potential disruptive innovation is one of the parameters that can
significantly determine if it will eventually develop to be disruptive.
Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
Proposition E (Entrants): New ‘entrants' to a market/industry are
more likely to disrupt than incumbents.
Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
DIVE MODEL
Introduction
Discussion &
Contributions
Methodology Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
CONCEPTUALISING
DISRUPTED DISRUPTION
Introduction
Discussion &
Contributions
Methodology
PotentialDisruptiveInnovation[PDI]
Disruptive Innovation
[DI]
Disrupted Disruption
[DD]
Results & Analysis
Discussion &
Contributions
Turun kauppakorkeakoulu  Turku School of Economics
Y O U
T H A N K
Image Source:
http://www.microsoft.com/enterprise/newsletter/office-of-the-cio/july2012.aspx#fbid=FsthQfAiGxi
https://www.iconfinder.com/icons/44973/agency_building_bureau_business_company_icon
http://dragonage.wikia.com/wiki/File:Article_icon.png
http://commons.wikimedia.org/wiki/File:Stack_of_Copy_Paper.jpg
speak2ab
Abayomi Baiyere

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Disrupted Disruptions. Lessons from Potential Disruptive Innovations that barely disrupted.

  • 1. Turun kauppakorkeakoulu  Turku School of Economics WHO IS WATCHING CLOUD – ANGELS OR DEMONS? Tingting Lin DISRUPTED DISRUPTIONS Lessons from Potential Disruptive Innovations that barely disrupted Abayomi Baiyere University of Turku, Finland speak2ab Abayomi Baiyere This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy & Society, Dublin, Ireland on 8-11 June 2014.
  • 2. Turun kauppakorkeakoulu  Turku School of Economics BACKGROUND Introduction Methodology Results & Analysis Discussion & Contributions
  • 3. Turun kauppakorkeakoulu  Turku School of Economics BACKGROUND Introduction Methodology Results & Analysis Discussion & Contributions
  • 4. Turun kauppakorkeakoulu  Turku School of Economics MOTIVATION Methodology Results & Analysis Discussion & Contributions Introduction
  • 5. Turun kauppakorkeakoulu  Turku School of Economics MOTIVATION Methodology Results & Analysis Discussion & Contributions Introduction
  • 6. Turun kauppakorkeakoulu  Turku School of Economics MOTIVATION Methodology Results & Analysis Discussion & Contributions Introduction
  • 7. Turun kauppakorkeakoulu  Turku School of Economics MOTIVATION Methodology Results & Analysis Discussion & Contributions Introduction However… When really can an innovation be considered a disruptive Innovation? Potential DI Disrupted DI
  • 8. Turun kauppakorkeakoulu  Turku School of Economics OBJECTIVE Introduction Methodology Results & Analysis Discussion & Contributions key attributes that characterizes disrupted disruptions and potential disruptive innovations… lessons can be extracted from DD & PDI for managers facing threats of disruptive innovation… Identify and Inform about
  • 9. Turun kauppakorkeakoulu  Turku School of Economics DATA SOURCE MethdodologyIntroduction Results & Analysis Discussion & Contributions Literature Review | Expert Interviews | Archival Data
  • 10. Turun kauppakorkeakoulu  Turku School of Economics CONCEPTUALISING POTENTIAL DI Introduction Results & Analysis Discussion & Contributions Methodology Nature of Disruptive Innovations Difficult to label ex-ante It is a relative phenomena. PotentialDisruptiveInnovation
  • 11. Turun kauppakorkeakoulu  Turku School of Economics CONCEPTUALISING DISRUPTED DISRUPTION Introduction Results & Analysis Discussion & Contributions Methodology PotentialDisruptiveInnovation[PDI] Disruptive Innovation [DI] Disrupted Disruption [DD]
  • 12. Turun kauppakorkeakoulu  Turku School of Economics DIFFERENTIATING PDI, DD & DI Introduction Results & Analysis Discussion & Contributions Methodology
  • 13. Turun kauppakorkeakoulu  Turku School of Economics DIFFERENTIATING PDI, DD & DI Introduction Results & Analysis Discussion & Contributions Methodology DIDifferentiationFramework
  • 14. Turun kauppakorkeakoulu  Turku School of Economics PDI CASE EXAMPLE Introduction Results & Analysis Discussion & Contributions Methodology Mobile-DrivenInnovation
  • 15. Turun kauppakorkeakoulu  Turku School of Economics PDI CASE EXAMPLE Introduction Results & Analysis Discussion & Contributions Methodology 1 - Directly valued by high paying customers 2 - Valued as a supplement rather than a substitute 3 - Creates new market 4 - Appeals directly to same customers 5 - Not necessarily simpler/ more convenient but rather different. 6 - Serves existing consumers 7 - Not necessarily simpler however cumbersome to mount 8 - Adoption currently in the infancy stage
  • 16. Turun kauppakorkeakoulu  Turku School of Economics DD CASE EXAMPLE Introduction Results & Analysis Discussion & Contributions Methodology Google Docs Nintendo Wii Tata Nano Minicomputers
  • 17. Turun kauppakorkeakoulu  Turku School of Economics DD PROPOSITIONS Introduction Discussion & Contributions Methodology Proposition D (Direct competition): If the initial offering of a Potential Disruptive Innovations is not ‘directly competing’ for the mainstream customers, the chances of ultimately becoming disruptive is higher. Results & Analysis Discussion & Contributions
  • 18. Turun kauppakorkeakoulu  Turku School of Economics DD PROPOSITIONS Introduction Discussion & Contributions Methodology Proposition I (Ignore): If a potential disruptive innovation is acknowledged 'early and not ignored', the likelihood of it significantly disrupting the market position of the responder can be limited. Results & Analysis Discussion & Contributions
  • 19. Turun kauppakorkeakoulu  Turku School of Economics DD PROPOSITIONS Introduction Discussion & Contributions Methodology Proposition V (Velocity of adoption): The 'velocity of adoption' of a potential disruptive innovation is one of the parameters that can significantly determine if it will eventually develop to be disruptive. Results & Analysis Discussion & Contributions
  • 20. Turun kauppakorkeakoulu  Turku School of Economics DD PROPOSITIONS Introduction Discussion & Contributions Methodology Proposition E (Entrants): New ‘entrants' to a market/industry are more likely to disrupt than incumbents. Results & Analysis Discussion & Contributions
  • 21. Turun kauppakorkeakoulu  Turku School of Economics DIVE MODEL Introduction Discussion & Contributions Methodology Results & Analysis Discussion & Contributions
  • 22. Turun kauppakorkeakoulu  Turku School of Economics CONCEPTUALISING DISRUPTED DISRUPTION Introduction Discussion & Contributions Methodology PotentialDisruptiveInnovation[PDI] Disruptive Innovation [DI] Disrupted Disruption [DD] Results & Analysis Discussion & Contributions
  • 23. Turun kauppakorkeakoulu  Turku School of Economics Y O U T H A N K Image Source: http://www.microsoft.com/enterprise/newsletter/office-of-the-cio/july2012.aspx#fbid=FsthQfAiGxi https://www.iconfinder.com/icons/44973/agency_building_bureau_business_company_icon http://dragonage.wikia.com/wiki/File:Article_icon.png http://commons.wikimedia.org/wiki/File:Stack_of_Copy_Paper.jpg speak2ab Abayomi Baiyere