This document discusses technology strategy and innovation. It introduces the S-curve model which maps the growth of an innovation from introduction through maturity. The S-curve has distinct phases of embryonic, growth, and maturity. Disruptive innovations can threaten existing markets by enabling a whole new population of consumers through simplicity and affordability. The document outlines factors like science push, market pull, and components of the innovation cycle. Finally, it discusses challenges in transitioning from an industrial to innovation economy and developing an effective innovation strategy.

1. Design and Implementation
of
Technology Strategy:
S-Curve & Disruption
Lecture by:
by:
Djadja.Sardjana@gmail.com
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2. Design and Implementation
of
Technology Strategy:
Innovation S-Curve & Disruption
Innovation Diffusion
3M58
Definition, Phase and Stage
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3. What is S-Curve?
S-
Once innovation occurs, innovations may be spread
from the innovator to other individuals and groups.
This process has been proposed that the life cycle of
innovations can be described using the ''s-curve'' or
s curve
diffusion curve. The s-curve maps growth of revenue
curve. s-
or productivity against time. The s-curve derives from
s-
an assumption that new products are likely to have
"product Life". i.e. a start-up phase, a rapid increase
start-
in revenue and eventual decline. In fact the great
majority of innovations never get off the bottom of the
curve, and never produce normal returns...
(Wikipedia)
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4. The S-Curve of Innovation
S-
Physical limit
New Technology Mature
Technology performance parameter
Invention Improvement Technology
Period Period Period
Embryonic Growth Maturity Aging
Time
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5. The S-Curve Phase
S-
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6. The S-Curve Stage
S-
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7. Technology life cycle and
product/process life cycle
Technology
life cycle
Product
Rate of innovation
innovation
Process
innovation
Technological Dominant Aging technology
discontinuity design (substitution and
(turbulence) discontinuity)
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8. Innovation Adoption Life Cycle
Innovators
Laggards
Adopters
Majority
Majority
Late
Early
Early
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9. Innovation and Marketplace
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10. Science Push and Market Pull
Opportunities Opportunities
for science for market
push pull
• Scientific discoveries • Market demand
• Applied knowledge • Proliferation of application
• Recognised needs areas
• Intellectual capital • Recognised needs
• Opportunities for increased:
profitability, quality, productivity
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11. Invention and Innovation
Invention
• Creation of a new idea for a product, process or service
Innovation
• A business process which brings inventions to commercial
use
• Requires the integration of inventions and existing
technologies to bring innovations to the marketplace
Idea generation + problem solving Invention
Invention + implementation Innovation
Innovation + diffusion Economic value
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12. Components of an innovation cycle
May never be developed into
marketable products
Invention
Has no
instantaneous Scientific Adopting
commercial Discovery Innovation invention
value
Effect
Market
Source: Tarek Khalil
Buying or ignoring
Market Ignoring Disruptive Innovation
the innovation
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13. Disruptive Innovation
http://en.wikipedia.org/wiki/Disruptive_innovation
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14. Disruptive Innovation on Graph
http://sephskerritt.com/2008/06/30/
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15. S-Curve & Disruptive Innovation
http://www.emeraldinsight.com
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16. Disruptive Innovation:
Threat to Existing Market
The Innovator's Solution, Christensen
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17. Disruptive Innovation: Examples
The Innovator's Solution, Christensen
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18. Design and Implementation
of
Technology Strategy:
Innovation S-Curve & Disruption
Innovation of MJ
6M38
Innovation Strategic Action
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19. From Industrial Economy to
Innovation Economy
Industrial Economy Innovation Economy
Reduced Cost
Cost saving through vertical Flexibility through outsourcing
integration
Customer visits location/ Role of content Choice by on-line description
on-
inspect standardized goods and customized goods
Clear distinction between Blurred Boundaries All firms become content firms
producers of content
Market infrastructure Market infrastructure
constrains quick changes Accelerated Competition
enables quick changes
Limited choices through Many choices through
predetermined channels Shift in Power
multiple channels
Business based on integrated Business based on differentiated
value network New Business Model content and added value
Physical resources and Intangible resources and
decreasing returns increasing returns
Increasing Returns
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20. From Industrial Economy to
Innovation Economy
Sales Customer
“Push” Focus Brand “Pull” Focus
Capital
Production Value Innovation
Focus Brand Focus
Capital
High (WIP, Low (Direct Delivery
Finished Goods) Brand to Customer)
Capital
High (Ownership Low
Of Production) Brand (Outsourcing)
Capital
Source: Davenport et.al. (2006). Strategic Management in the Innovation Economy, pg. 63.
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21. Organization Challenge
Here Ok
Here
CEOs
10°
Managers
60°
Staff
360°
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22. Innovation Strategy Foundations
Strength of
Weakness of
the
the company
company
Opportunity Possible
Starting point
offered restrictions
of strategy
for strategy
by the implementation
work
environment
Possible
Threat caused Possible
restrictions
crisis
by the elements
for strategy
environment implementation
In simplest strategy is organization’s approach to adjust
with the changes in environment – proactively or reactively
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23. Innovation Strategy Concept
Era for Networking era
Number of Elements
Organizational
in Strategic Planning Structure
Kotter:
Leading Change
Porter: Norton, Kaplan:
Competitive Strategic Maps
Advantage Network Analysis
Adjustment era Structure
Core Competences
Minzberg, System
Resource Strategies
Quinn: Culture
Competence Management
Strategy cannot Strategic Maps
Business Intelligence
be planned Competitor Intelligence
formally Venturing
Generic Strategies
Scenario Planning
Portfolio Analysis
Competitor Analysis
Planning era Industry Analysis
H. Igor Ansoff:
Formal Strategic Planning
1960 1970 1980 1990 2000 2010
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24. Strategies at different stages
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25. Internal Disruptive Innovation
http://cioinnervoice.wordpress.com/
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26. S-Curve Habit Cycle
http://3.bp.blogspot.com/
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27. Lesson Learned: Cisco's Merger &
Acquisition Innovation Strategy highly
Have
centralized
7 marketing and
customer contact.
Plug the acquisition 1
into a powerful
market access
infrastructure, Decentralize
releasing untapped on research
potential. and upstream
parts of
product
development.
6 2
Emphasis on 5
speed. 3
Identify
leaders in
areas where
Cisco does not
Develop repeatable
process of acquisition 4 Assess
multiple deals
have a strong
enough
evaluation, due presence
diligence, and through the
integration Bus-Dev
function.

28. Lesson Learned:
Cisco Acquisitions (Samples)
SMB
2000 1995
1996
2004
Service Provider 1998
2001
1998 2003
1998
1997
1999 2005
Enterprise
1999
1993 1994
2005

29. RESULT
Aligning Innovation
With The Life Cycle
Experimental Innovation :
Disruptive Innovation :
Makes surface particularly in that press, because markets appear
Gets attention, modifications the improve customer’s experience
of established products or processes. source of wealth.
as if from nowhere, creating a massive
Marketing Innovation : :
Application Innovation
Improves customers touchinginto new markets to marketing
Takes existing technologies processes, be they
communications or consumer transactions
serve new purposes.
BusinessInnovation :
Product Model Innovation :
Reframes an established in established markets to the next or a
Takes established offers value proposition to the customer level
company’s established role in the value chain or both.
Process Innovation :
Structural Innovation :
Makes processes for established offers in established markets
Capitalizes on disruption to restructure industry relationships.
more effective or efficient.

30. Design and Implementation
of
Technology Strategy:
Innovation S-Curve & Disruption
Think out the box
1M41
Conclusion & Final Words
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