DISTRUPTIVE TECHNOLOGY
THEORY
A disruptive technology is one that
displaces(SHIFTS OR TRANFERS) an
established technology and shakes up the
industry or a ground-breaking product
that creates a completely new industry
Harvard Business School professor Clayton M.
Christensen coined the term disruptive technology.
In his 1997 best-selling book, "The Innovator's
Dilemma,"
 Christensen separates new technology into two
categories: sustaining and disruptive.
 Sustaining technology relies on incremental improvements
to an already established technology.
 Disruptive technology lacks refinement, often has
performance problems because it is new, appeals to a
limited audience and may not yet have a proven practical
application. (Such was the case with Alexander Graham
Bell's "electrical speech machine," which we now call the
telephone.)
Here are a few examples of disruptive
technologies
 The personal computer (PC) displaced the typewriter and forever changed the way we
work and communicate.
 The Windows operating system's combination of affordability and a user-friendly
interface was instrumental in the rapid development of the personal computing
industry in the 1990s. Personal computing disrupted the television industry, as well as
a great number of other activities.
 Email transformed the way we communicating, largely displacing letter-writing and
disrupting the postal and greeting card industries.
 Cell phones made it possible for people to call us anywhere and disrupted the telecom
industry.
CONTD….
 The laptop computer and mobile computing made a mobile workforce possible and
made it possible for people to connect to corporate networks and collaborate from
anywhere. In many organizations, laptops replaced desktops.
 Smartphones largely replaced cell phones and PDAs and, because of the available
apps, also disrupted: pocket cameras, MP3 players, calculators and GPS devices,
among many other possibilities. For some mobile users, smartphones often replace
laptops. Others prefer a tablet.
 Cloud computing has been a hugely disruptive technology in the business world,
displacing many resources that would conventionally have been located in-house
or provided as a traditionally hosted service.
 Social networking has had a major impact on the way we communicate and --
especially for personal use -- has disrupted telephone, email, instant messaging
and event planning.
The personal computer (PC) displaced the
typewriter and forever changed the way we
work and communicate.
The Windows operating system's combination of affordability and a user-friendly
interface was instrumental in the rapid development of the personal computing
industry in the 1990s. Personal computing disrupted the television industry, as
well as a great number of other activities
Email transformed the way we communicating,
largely displacing letter-writing and disrupting the
postal and greeting card industries.
Cell phones made it possible for people to
call us anywhere and disrupted the telecom
industry.
Innovation Creation Theory
 It helps to managing and update knowledge
 It is considered as the adaptation to new learning.
 It is at the centre of Leonard’s (1998) “wellsprings of knowledge” investigation.
 She argues that technology developers must devise.
 It maintains a system of knowledge creation.
 In order to build knowledge assets
 It helps to understand them to a great level of complexity.
 While her argument is:
 future can’t be foreseen,
 companies survive on their ability.
 It is adapted when necessary,
 based on the thoughtful application of knowledge assets.
The World's 10 Most Innovative Companies, And How They Do It
 In conducting our latest Global Innovation 1000 study, we surveyed more than 450 innovation executives (senior
managers and R&D professionals) at more than 400 different companies around the globe.
 The chart below shows how the top 10 most innovative– Apple , Google , 3M ,
GE, Toyota , Microsoft , P&G , IBM , Samsung and Intel –are spending.
Example:
 Take Apple as an example.
 It leads our list of the 10 most innovative.
 Today Apple epitomizes a capabilities-driven
innovation strategy
Innovation Theory is very important in an organization because it leads to the progress of
the organization. Moreover, it works where the organizations are user friendly to the use
of the innovations. The chart shows the use of innovation in different departments of an
organization.
Schumpeterian
Innovations
Economical creative accumulation about the pattern of innovative
activities and techonologicals imperatives.
In order to make this engine work, Schumpeter
considered innovations to be the
propelling element underlying all economic categories.
According to his theory,
technological innovations appear at rare and irregular
intervals in every industry,
and they command a decisive cost or quality advantage
and strike not only at the
margin of profits and outputs but they destroy old ways
of doing things and replace them with new ones.
These innovations occur, when knowledge and
information act upon knowledge and
information, and in this constellation, technology is the
tool to make it all work in a
faster mode of creative destruction. Hem with new ones.
Schumpeterian innovations by other firms destroy the
core competences of leading established
firms and hence their sustainable competitive
advantage. This is what Schumpeter
calls “creative destruction”. According to Schumpeter
(1942, p.84; cited in Baaij et
al. 2004, p.519), technological innovations have a
destroying and a building power,
which is a critical element for a flexible, modern
economy and society.
Discussion of the Disruptive Technology
INTRODUCTION
 The theory of disruptive technologies has been widely studied as part of
innovation theory. Incorporating research in product and process innovation as
well as in techno-economic analysis of technology markets, disruptive
technologies have gained a considerable amount of interest in technology
organizations.
What is technology disruption?
 Clayton Christensen, author and creator of disruption theory defines a
disruptive innovation as: “a product or service designed for a new set of
customers”. (Christensen, C. Key Concepts, 2015).
 Technology disruption is the advent of a new or existing technology that is
used and/or created in such a way that it renders the incumbent obsolete,
over years or decades.
What is technology disruption?
 Clayton Christensen, author and creator of disruption theory defines a
disruptive innovation as: “a product or service designed for a new set of
customers”. (Christensen, C. Key Concepts, 2015).
 Technology disruption is the advent of a new or existing technology that is
used and/or created in such a way that it renders the incumbent obsolete,
over years or decades.

Pp1 ict (3)

  • 1.
    DISTRUPTIVE TECHNOLOGY THEORY A disruptivetechnology is one that displaces(SHIFTS OR TRANFERS) an established technology and shakes up the industry or a ground-breaking product that creates a completely new industry
  • 2.
    Harvard Business Schoolprofessor Clayton M. Christensen coined the term disruptive technology. In his 1997 best-selling book, "The Innovator's Dilemma,"  Christensen separates new technology into two categories: sustaining and disruptive.  Sustaining technology relies on incremental improvements to an already established technology.  Disruptive technology lacks refinement, often has performance problems because it is new, appeals to a limited audience and may not yet have a proven practical application. (Such was the case with Alexander Graham Bell's "electrical speech machine," which we now call the telephone.)
  • 3.
    Here are afew examples of disruptive technologies  The personal computer (PC) displaced the typewriter and forever changed the way we work and communicate.  The Windows operating system's combination of affordability and a user-friendly interface was instrumental in the rapid development of the personal computing industry in the 1990s. Personal computing disrupted the television industry, as well as a great number of other activities.  Email transformed the way we communicating, largely displacing letter-writing and disrupting the postal and greeting card industries.  Cell phones made it possible for people to call us anywhere and disrupted the telecom industry.
  • 4.
    CONTD….  The laptopcomputer and mobile computing made a mobile workforce possible and made it possible for people to connect to corporate networks and collaborate from anywhere. In many organizations, laptops replaced desktops.  Smartphones largely replaced cell phones and PDAs and, because of the available apps, also disrupted: pocket cameras, MP3 players, calculators and GPS devices, among many other possibilities. For some mobile users, smartphones often replace laptops. Others prefer a tablet.  Cloud computing has been a hugely disruptive technology in the business world, displacing many resources that would conventionally have been located in-house or provided as a traditionally hosted service.  Social networking has had a major impact on the way we communicate and -- especially for personal use -- has disrupted telephone, email, instant messaging and event planning.
  • 5.
    The personal computer(PC) displaced the typewriter and forever changed the way we work and communicate.
  • 6.
    The Windows operatingsystem's combination of affordability and a user-friendly interface was instrumental in the rapid development of the personal computing industry in the 1990s. Personal computing disrupted the television industry, as well as a great number of other activities
  • 7.
    Email transformed theway we communicating, largely displacing letter-writing and disrupting the postal and greeting card industries.
  • 8.
    Cell phones madeit possible for people to call us anywhere and disrupted the telecom industry.
  • 9.
    Innovation Creation Theory It helps to managing and update knowledge  It is considered as the adaptation to new learning.  It is at the centre of Leonard’s (1998) “wellsprings of knowledge” investigation.  She argues that technology developers must devise.  It maintains a system of knowledge creation.  In order to build knowledge assets  It helps to understand them to a great level of complexity.  While her argument is:  future can’t be foreseen,  companies survive on their ability.  It is adapted when necessary,  based on the thoughtful application of knowledge assets.
  • 10.
    The World's 10Most Innovative Companies, And How They Do It  In conducting our latest Global Innovation 1000 study, we surveyed more than 450 innovation executives (senior managers and R&D professionals) at more than 400 different companies around the globe.  The chart below shows how the top 10 most innovative– Apple , Google , 3M , GE, Toyota , Microsoft , P&G , IBM , Samsung and Intel –are spending. Example:  Take Apple as an example.  It leads our list of the 10 most innovative.  Today Apple epitomizes a capabilities-driven innovation strategy
  • 12.
    Innovation Theory isvery important in an organization because it leads to the progress of the organization. Moreover, it works where the organizations are user friendly to the use of the innovations. The chart shows the use of innovation in different departments of an organization.
  • 13.
    Schumpeterian Innovations Economical creative accumulationabout the pattern of innovative activities and techonologicals imperatives.
  • 14.
    In order tomake this engine work, Schumpeter considered innovations to be the propelling element underlying all economic categories. According to his theory, technological innovations appear at rare and irregular intervals in every industry, and they command a decisive cost or quality advantage and strike not only at the margin of profits and outputs but they destroy old ways of doing things and replace them with new ones.
  • 15.
    These innovations occur,when knowledge and information act upon knowledge and information, and in this constellation, technology is the tool to make it all work in a faster mode of creative destruction. Hem with new ones.
  • 16.
    Schumpeterian innovations byother firms destroy the core competences of leading established firms and hence their sustainable competitive advantage. This is what Schumpeter calls “creative destruction”. According to Schumpeter (1942, p.84; cited in Baaij et al. 2004, p.519), technological innovations have a destroying and a building power, which is a critical element for a flexible, modern economy and society.
  • 17.
    Discussion of theDisruptive Technology
  • 18.
    INTRODUCTION  The theoryof disruptive technologies has been widely studied as part of innovation theory. Incorporating research in product and process innovation as well as in techno-economic analysis of technology markets, disruptive technologies have gained a considerable amount of interest in technology organizations.
  • 19.
    What is technologydisruption?  Clayton Christensen, author and creator of disruption theory defines a disruptive innovation as: “a product or service designed for a new set of customers”. (Christensen, C. Key Concepts, 2015).  Technology disruption is the advent of a new or existing technology that is used and/or created in such a way that it renders the incumbent obsolete, over years or decades.
  • 20.
    What is technologydisruption?  Clayton Christensen, author and creator of disruption theory defines a disruptive innovation as: “a product or service designed for a new set of customers”. (Christensen, C. Key Concepts, 2015).  Technology disruption is the advent of a new or existing technology that is used and/or created in such a way that it renders the incumbent obsolete, over years or decades.