rskningsprojekt, kring den koll ekonomin, viktigare attityd förändringar, indirekta och mer direkta orsaker, attityd, ser en backlash för att ta avstånd till varandra, komma närmare varandra, inte samma rädsla, kommer in i människors hem Agera på en miljömedvetenhet, ett decennium, där vi lyft upp på agendan, inte förneka den digitala,
After decades of growth and profits, the Swedish manufacturer Facit began experiencing major financial troubles in the early 1970s as electronic calculators replaced their mechanical calculators. Over the next few years, Facit saw large losses, laid off over 2,400 employees, and saw their stock value plummet. They were eventually acquired by Electrolux in 1972. The rapid technological shift from mechanical to electronic calculators destroyed much of the wealth that the Ericsson family had accumulated over 50 years from owning Facit, demonstrating how disruptive innovation under capitalism can create both economic growth but also significant job losses and industrial collapse.
rskningsprojekt, kring den koll ekonomin, viktigare attityd förändringar, indirekta och mer direkta orsaker, attityd, ser en backlash för att ta avstånd till varandra, komma närmare varandra, inte samma rädsla, kommer in i människors hem Agera på en miljömedvetenhet, ett decennium, där vi lyft upp på agendan, inte förneka den digitala,
After decades of growth and profits, the Swedish manufacturer Facit began experiencing major financial troubles in the early 1970s as electronic calculators replaced their mechanical calculators. Over the next few years, Facit saw large losses, laid off over 2,400 employees, and saw their stock value plummet. They were eventually acquired by Electrolux in 1972. The rapid technological shift from mechanical to electronic calculators destroyed much of the wealth that the Ericsson family had accumulated over 50 years from owning Facit, demonstrating how disruptive innovation under capitalism can create both economic growth but also significant job losses and industrial collapse.
The Facit man was the mascot of the Swedish manufacturer Facit, symbolizing a wizard who could solve problems through calculator magic. Over 1 million Facit men were distributed worldwide from 1948-1970 to promote Facit's calculators, typewriters and office furniture. Despite initial resistance, the Facit man became popular and provided Facit with a competitive advantage in a mature industry by making their brand more visible and memorable.
Christian Sandström holds a PhD from Chalmers University of Technology in Sweden and writes about disruptive innovation and technological change. The document discusses Nokia's decline from controlling 40% of the global cellphone market in 2007 to collapsing and now fighting to reinvent itself. Several figures are presented to illustrate Nokia's dramatic decline over this period. Contact information is provided to find out more about Nokia and disruptive innovation from Sandström's website.
Disruptive innovation, smartphones and the decline of NokiaChris Sandström
Apple’s IPhone was first revealed in January 2007. Out of curiosity I pondered through Nokia’s quarterly presentation slides in the years 2007-2010 in order to get a better idea about how they related to the ongoing shift from feature phones to smartphones. While such a brief and shallow review will not give the full picture of Nokia’s response, it might still reveal something.
This document discusses some limitations of using the technology S-curve to understand technological change and disruption. Specifically, it notes that the S-curve does not take into account market factors or how customer needs and values can change over time. As an example, it shows how compact cameras were displaced by mobile phone cameras not due to reaching scientific limits, but because increased portability became more important to customers than further improvements in image quality. This phenomenon of "technology overshooting" occurs when a technology is replaced before peak performance due to shifting customer priorities.
This document introduces the concept of a "Sailing Ship effect", where an established technology facing disruption from a new technology undergoes accelerated improvements just before being displaced. The concept is illustrated using an S-curve to show how a new technology improves rapidly after an initial breakthrough, eventually surpassing the established technology. Examples are given of analog CCTV facing threats from digital IP video, and the automotive industry facing saturated markets. The Sailing Ship effect represents a last attempt by incumbent firms to improve the established technology in response to the disruption threat, even though the new technology ultimately wins out.
As electronic calculators became popular in the 1960s-1970s, the calculator industry experienced rapid growth. By 1972, most mechanical calculator manufacturers had collapsed. Many new firms, especially in Japan, entered the growing market but faced low barriers. The introduction of integrated circuits and later calculators-on-a-chip drastically reduced prices and improved performance while changing the industry structure. Most new entrants failed while a few like Sharp succeeded in the "Great Calculator War" of the early 1970s.
The Swiss watch industry dominated global exports in the 1970s but collapsed as digital watch technology emerged. The industry's decentralized structure made a coordinated response to digitization difficult. As production costs fell and distribution widened, cheap digital watches from Texas Instruments and others bankrupted many Swiss manufacturers. While some high-end Swiss brands survived on branding, the industry's competitive advantage was lost as specialized mechanical watchmaking skills became obsolete.
This thesis explores disruptive innovation through a study of value, networks, and business models. Previous research has shown that disruptive innovations often topple incumbents because the innovations are not initially demanded by established customers. However, more knowledge is needed on how disruptive innovations can prosper within an incumbent's existing market segment. The thesis presents case studies of Hasselblad and Facit to explore how disruptive innovations create new value through activities like removing labor. This suggests disruptive innovation theory needs a broader view of how different performance dimensions create value. Additionally, customers should be seen as a network of actors with varying competencies and incentives, as disruptive innovations may be incompatible with some actors even when existing customers demand the technology.
The document provides 5 examples of disruptive innovation:
1) Transistor radios disrupted analogue radios by being portable despite lower sound quality.
2) Pocket calculators disrupted desktop calculators through portability despite lower computing power.
3) LCD TVs disrupted CRT TVs initially in mobile applications where lighter weight and battery life were more important than picture quality.
4) Minimills disrupted integrated steel mills by producing cheaper, lower quality steel that captured more segments over time.
5) Mobile phones disrupted landlines by being portable despite lower sound quality and higher costs initially.
The Facit man was the mascot of the Swedish manufacturer Facit, symbolizing a wizard who could solve problems through calculator magic. Over 1 million Facit men were distributed worldwide from 1948-1970 to promote Facit's calculators, typewriters and office furniture. Despite initial resistance, the Facit man became popular and provided Facit with a competitive advantage in a mature industry by making their brand more visible and memorable.
Christian Sandström holds a PhD from Chalmers University of Technology in Sweden and writes about disruptive innovation and technological change. The document discusses Nokia's decline from controlling 40% of the global cellphone market in 2007 to collapsing and now fighting to reinvent itself. Several figures are presented to illustrate Nokia's dramatic decline over this period. Contact information is provided to find out more about Nokia and disruptive innovation from Sandström's website.
Disruptive innovation, smartphones and the decline of NokiaChris Sandström
Apple’s IPhone was first revealed in January 2007. Out of curiosity I pondered through Nokia’s quarterly presentation slides in the years 2007-2010 in order to get a better idea about how they related to the ongoing shift from feature phones to smartphones. While such a brief and shallow review will not give the full picture of Nokia’s response, it might still reveal something.
This document discusses some limitations of using the technology S-curve to understand technological change and disruption. Specifically, it notes that the S-curve does not take into account market factors or how customer needs and values can change over time. As an example, it shows how compact cameras were displaced by mobile phone cameras not due to reaching scientific limits, but because increased portability became more important to customers than further improvements in image quality. This phenomenon of "technology overshooting" occurs when a technology is replaced before peak performance due to shifting customer priorities.
This document introduces the concept of a "Sailing Ship effect", where an established technology facing disruption from a new technology undergoes accelerated improvements just before being displaced. The concept is illustrated using an S-curve to show how a new technology improves rapidly after an initial breakthrough, eventually surpassing the established technology. Examples are given of analog CCTV facing threats from digital IP video, and the automotive industry facing saturated markets. The Sailing Ship effect represents a last attempt by incumbent firms to improve the established technology in response to the disruption threat, even though the new technology ultimately wins out.
As electronic calculators became popular in the 1960s-1970s, the calculator industry experienced rapid growth. By 1972, most mechanical calculator manufacturers had collapsed. Many new firms, especially in Japan, entered the growing market but faced low barriers. The introduction of integrated circuits and later calculators-on-a-chip drastically reduced prices and improved performance while changing the industry structure. Most new entrants failed while a few like Sharp succeeded in the "Great Calculator War" of the early 1970s.
The Swiss watch industry dominated global exports in the 1970s but collapsed as digital watch technology emerged. The industry's decentralized structure made a coordinated response to digitization difficult. As production costs fell and distribution widened, cheap digital watches from Texas Instruments and others bankrupted many Swiss manufacturers. While some high-end Swiss brands survived on branding, the industry's competitive advantage was lost as specialized mechanical watchmaking skills became obsolete.
This thesis explores disruptive innovation through a study of value, networks, and business models. Previous research has shown that disruptive innovations often topple incumbents because the innovations are not initially demanded by established customers. However, more knowledge is needed on how disruptive innovations can prosper within an incumbent's existing market segment. The thesis presents case studies of Hasselblad and Facit to explore how disruptive innovations create new value through activities like removing labor. This suggests disruptive innovation theory needs a broader view of how different performance dimensions create value. Additionally, customers should be seen as a network of actors with varying competencies and incentives, as disruptive innovations may be incompatible with some actors even when existing customers demand the technology.
The document provides 5 examples of disruptive innovation:
1) Transistor radios disrupted analogue radios by being portable despite lower sound quality.
2) Pocket calculators disrupted desktop calculators through portability despite lower computing power.
3) LCD TVs disrupted CRT TVs initially in mobile applications where lighter weight and battery life were more important than picture quality.
4) Minimills disrupted integrated steel mills by producing cheaper, lower quality steel that captured more segments over time.
5) Mobile phones disrupted landlines by being portable despite lower sound quality and higher costs initially.
The document discusses whether the transition from analogue to digital IP cameras is a disruptive technology. It provides background on Clayton Christensen's theory of disruptive innovation, where new technologies initially underperform along dimensions valued by existing customers but have other attributes that create new markets. While IP video initially had lower image quality and price than analogue, it offered scalability and remote access. However, unlike disruptive technologies, IP video has emerged in major existing surveillance segments like retail and cities, not new or low-end markets. Therefore, the transition may not be a classic example of disruptive innovation.
Robert Noyce Quotes On Leadership And InnovationChris Sandström
Robert Noyce, co-inventor of the integrated circuit, viewed his invention as the result of a continuous, logical process rather than a singular breakthrough moment. He saw himself as trying to solve a production problem rather than specifically aiming to create an integrated circuit. Noyce also believed that researchers are best positioned to evaluate long-term research programs, not supervisors, and that managers should focus on enabling researchers' work rather than directing it.
The Swedish camera manufacturer Hasselblad was known for its compatibility with different lenses and accessories, allowing photographers flexibility. However, with the launch of the H3D model in 2006, Hasselblad announced it would no longer be compatible with other digital backs or allow its new lenses to be used with previous H models, going against its tradition of compatibility. This move was likely a result of Hasselblad's weakening after the shift to digital and its merger with Imacon, but may reduce photographer willingness to invest in Hasselblad instead of high-end DSLRs in the long run.
Christian Sandström holds a PhD from Chalmers University of Technology, Sweden and writes about disruptive innovation and technological change. Roxette is one of Sweden's greatest pop bands, having sold over 45 million albums and 25 million singles. Their success can be largely attributed to understanding the importance of digital technology. Before founding Roxette, lead singer Per Gessle had been in the Swedish band Gyllene Tider, which was popular in Sweden from 1979-1981 but then declined. Gessle realized he could exploit the digital revolution by using synthesizers, MIDI, and drum machines to produce music professionally at low cost anywhere, including Sweden. This led to Roxette's album "Look Sharp" becoming a
Kodak struggled with the technological shift from film to digital imaging due to its entrenched bureaucracy and focus on maintaining the status quo. Former executives described Kodak as a film company that saw equipment only as a means to sell more film and avoided anything seen as risky. The bureaucracy grew so large over Kodak's 100+ years of success in film that decision making required many approvals and meetings to avoid confrontation. This risk-averse culture made it difficult for Kodak to innovate and adapt to digital photography, ultimately leading to the company's decline.
Middle management at Kodak resisted the shift to digital photography, filtering information and impeding the CEO's efforts to change the culture. They feared losing their positions in the company if it changed strategies and embraced new digital technologies. This resistance from middle management is identified as a major reason for Kodak's decline as it failed to transition quickly enough to digital.
10. När det så var
dags för orten att
fira 550-
årsjubileum var
det självklart att
Facit och Elofs
minne skulle ha
en central roll
under dagen…
11. Dagen hälsas med salut på morgonen, flaggor
hissas och trumpeter ljuder…
12. Det fanns gott om besökare från Facit-koncernens
olika hörn av världen. Gästerna välkomnades på
förmiddagen av VD Gunnar Ericsson.
En rundvisning i fabrikerna ägde rum och därefter
bjöds det på stor jubileumslunch.
36. Olika delar av denna sjuka kom sedan att drabba
General Motors, Hugin, Polaroid, Luxor, Kodak,
Hasselblad mfl…
37. Facit och Åtvidaberg var nog först i Sverige att råka
ut för dessa förändringar och de nödvändiga
omställningar de gav upphov till.
38. Orten har en fantastisk historia, som på många sätt
illustrerar västvärldens ekonomiska utveckling
under 1900-talet.
39.
40. Tack till ’Brukskultur Åtvidaberg’ och Åtvidabergs
Kommun. Facitarkiven är en fantastisk källa.
41. Christian Sandström
doktorerar på Chalmers.
Han forskar och föreläser
om teknikskiften.
www.christiansandstrom.org
christian.sandstrom at chalmers.se