The Innovator’s Dilemma Explained Click Play to See Presentation10 Slides TotalProduct PerformanceTime
Progress ofsustainingtechnologySteady Improvement in Base TechnologyRaises Product Performance Over TimeProduct PerformanceTime
High-endperformancedemand trendCustomer’s Expectations IncreaseProduct PerformanceLow-endperformancedemand trendTime
Progress ofsustainingtechnologyHigh-endperformancedemand trendAt Time T1 Product is Just Good EnoughProduct PerformanceLow-endperformancedemand trendGood, but….T1Time
Progress ofsustainingtechnologyHigh-endperformancedemand trendSupplier Makes Improvements With Existing TechnologyProduct PerformanceMuch Better!Low-endperformancedemand trendGood, but….T1TimeT2
Progress ofsustainingtechnologyHigh-endperformancedemand trendAt T3, Supplier Continues With What Works,But Product Performance Exceeds Needs Great!Product PerformanceMuch Better!Low-endperformancedemand trendGood, but….T1TimeT2T3
Progress ofsustainingtechnologyHigh-endperformancedemand trendDisruptive Innovation Occurs at T2, No Perceived Threat - Does Not Meet Needs Progress ofnew technologyGreat!Product PerformanceMuch Better!DisruptiveinnovationLow-endperformancedemand trendGood, but….T1TimeT2T3
Progress ofsustainingtechnologyHigh-endperformancedemand trendBy T3 the Disruptive Supplier Meets Needs,Base Tech Supplier Stuck on Old Technology Progress ofnew technologyGreat!Product PerformanceMuch Better!DisruptiveinnovationLow-endperformancedemand trend- Good, but….T1TimeT2T3
Progress ofsustainingtechnologyHigh-endperformancedemand trendAt T4, Innovator Hits the Sweet-spot Legacy Supplier Now Too late to Change Progress ofnew technology SuperGreat!Product PerformanceMuch Better!Sweet SpotDisruptiveinnovationLow-endperformancedemand trendGood, but….T1TimeT2T3T4
Progress ofsustainingtechnologyHigh-endperformancedemand trendThis Leads to Rapid Market Share Gain by the Innovator at T4 and the S-Curve PatternProgress ofnew technology SuperGreat!Product PerformanceMuch Better!Sweet SpotDisruptiveinnovationLow-endperformancedemand trendGood, but….S-Curve PatternOriginal supplier market share          High          LowDisruptive tech supplier share           Low            HighT1TimeT2T3T4

Innovators Dilemma Explained