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

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Innovators Dilemma Explained

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