Administration of New Emerging Technology

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The Innovator\'s Dilemma. The best of routine great business practices can at last debilitate an extraordinary firm from

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Administration of New & Emerging Technology INNOVATION & DISRUPTIVE TECHNOLOGY AN INTRODUCTION

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The Innovator's Dilemma The best of ordinary great business practices can at last debilitate an awesome firm from "The Innovator's Dilemma", by Clayton M. Christensen, Harvard Business School Professor, on mechanical development and problematic advances

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Disruptive Technology: Famous Incorrect Predictions "What could be more discernably ridiculous than the possibility of trains voyaging twice as quick as stagecoaches" The Quarterly Review, March 1825 "The steed is staying put, however the car is just an oddity – a craze" Advice to Henry Ford's Lawyer, 1922 "All around educated individuals realize that it is difficult to transmit the voice over wires and were that it were conceivable to do as such, it would be of no down to earth esteem" Editorial in the Boston Post, 1865 "This phone has an excessive number of deficiencies to be genuinely considered as a method for communication.  The gadget is innately of no incentive to us."  Western Union Internal Memo, 1876

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Disruptive Technology: Famous Incorrect Predictions "The remote music box has no believable business value.  Who might pay for a message sent to no one specifically?" Response of Associates of David Sarnoff, when welcomed to put resources into radio "I think there is a business opportunity for around five PCs." Thomas Watson, Sr. Originator of IBM, 1943 "There is no reason anybody would need a PC in their home." Ken Olsen, President and Founder of Digital Equipment Corp., 1977 "640k should be sufficient for anyone" Attributed to Bill Gates in 1981

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Disruptive Technology: Famous Incorrect Predictions A treat store is a terrible thought. Furthermore, the statistical surveying reports say America likes firm treats, not delicate and chewy treats like you make. - Response to Debbi Fields' concept of beginning Mrs. Fields' Cookies. Planes are intriguing toys however of no military esteem. - Marechal Ferdinand Foch, Professor of Strategy, Ecole Superieure de Guerre. In any case, what ... is it useful for? - Engineer at the Advanced Computing Systems Division of IBM, 1968, remarking on the microchip. PCs later on may measure close to 1.5 tons. - Popular Mechanics, anticipating the constant walk of science, 1949 Drill for oil? You mean bore into the ground to attempt and discover oil? You're insane. - Drillers who Edwin L. Drake attempted to enroll to his venture to penetrate for oil in 1859. Everything that can be developed has been concocted. - Charles H. Duell, Commissioner, U.S. Office of Patents, 1899.

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Disruptive Technology: Famous Incorrect Predictions People foresee the future erroneously in light of the fact that the "wrong" answer bodes well at the time Watson couldn't have think about: Miniaturization Networking The Internet User cordial, graphical UIs Falling expenses of PC segments

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Technologies Sustaining – Steady, straight change of existing innovation Disruptive – Introduction of totally new methodologies that can possibly make another industry or change a current one Revolutionary – radical developments computerized photography, microbots, high-temperature superconductors Evolutionary – framed by the union of already separate research regions MRI imaging, faxing, electronic keeping money

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The Innovator's Dilemma The PC is a prime case of a "disruptive technology" that was expelled crazy by an industry's built up pioneers until it was past the point of no return. Problematic advancements work by offering, at any rate at first, little in the method for execution, yet bounty regarding affordability, comfort and usability. Thusly, they offer to an alternate class of clients, cutting out new markets for themselves before going ahead to have the mechanical Goliaths' business for lunch.

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The Innovator's Dilemma The Innovator's Dilemma: An organization which is in a current business and tuning in to its current clients feels that there is no requirement for anything new. Should it contribute its cash to make new items that its best clients can utilize and that would enhance the organization's benefit margins" or contribute its cash to make more terrible items that none of its clients can utilize, that would wreck its overall revenues. Maintaining advancements – address the issues of clients today and the ones who are paying Disruptive advances – originate from trailblazers who continue enhancing the item execution till it comes "from below" and begins harming the settled in occupants.

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Dilemmas of Disruptive Technology Established Market Technology Trajectory Emerging Market Technology Trajectory execution requested at the high end of the market Disruptive innovation PERFORMANCE New execution direction execution requested at the low end of the market or in another developing business sector TIME

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Disruptive Technology The managing advances are on the blue line e.g., incremental designing advances that all great organizations can crush out. The descending yellow bolt , a troublesome innovation, is something that conveys to the market an item or administration that is not on a par with what truly had been accessible, and in this manner it can't be esteemed or utilized by clients in the standard of the market. However it flourishes in an alternate application. The green line speaks to the new execution direction - it inclines upward speedier than the maintaining innovation and converges with the clients needs and the standard.

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Innovator's Dilemma Disruptive advances don't at first fulfill the requests of even the high end of the market.  Large organizations disregard troublesome advances until they turn out to be more appealing benefit wise.  Eventually they outperform managing advances in fulfilling market request with lower costs.  Large organizations who did not put resources into the problematic innovation sooner are left behind. 

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Disruptive Technologies Well-settled organizations have issues managing troublesome advances since they aren't set up to deal with the progressions they bring on. Christensen characterizes troublesome advances as "simple, advantageous to-utilize developments that at first are utilized by just unsophisticated clients at the low end of markets." Large organizations tend not to focus on these problematic advances since they don't fulfill the requests of top of the line clients - at any rate, not at first. But since these radical advancements at first develop in little markets, they can, and regularly do, turn out to be out and out contenders for effectively settled items If an organization is set up to bargain just with "sustaining technologies," or advances that enhance item execution, and not problematic advances, it can come up short.

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Digital Equipment Corporation Although it was viewed as one of the best organizations in the 1980s, Digital was pulverized by a problematic innovation - the PC During the mid-1980s, Digital kept pace with clients' requests for expanded measures of figuring force. As the organization kept on providing this power, it additionally kept on bringing down costs. The very much oversaw Digital seemed, by all accounts, to be headed straight toward finish strength of its market. Presented by a couple new businesses, the PC spoke to people, not undertakings, who needed to utilize them basically to play recreations. In 1977, Ken Olsen, the organizer and CEO of Digital Equipment Corporation, stated, "There is no explanation behind any person to have a PC in his home." DEC chose not to contribute time, or cash, in an item its client organizations didn't need. Advanced's administration kept on putting resources into its top of the line items. The rest is history. Advanced's clients chosen they would not like to pay high costs for its items when the PC was less expensive and performed satisfactorily. Advanced was done in by a problematic innovation it neglected to perceive.

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Technology Adoption Lifecycle Curve "Crossing the Chasm", Geoff Moore The bend is approximately partitioned into 5 section: Innovators, Early Adopters, Early Majority, Late Majority and in conclusion Laggards. The zone under the bend can be deciphered as the User Expectations from the innovation. The more develop the innovation, the higher the client desires. The slouches are the most troublesome clients frequently requiring the most assets - most organizations receive the 80/20 run the show.

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80/20 Rule Innovation is totally basic to future upper hand and it can be simpler by considering the accompanying thoughts: 80% of significant worth saw by clients identifies with 20% of what your association does 80% of the advantage from any item or administration can be given at 20% of the cost 80% of the benefits made in your industry are made by 20% of firms. On the off chance that you are not one of these, what are they doing well that you're definitely not?

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2/10 Rule of Technology Adoption The 2-10 run characterizes when an innovation moves from the intriguing and cool stage to the truly helpful. The truly valuable stage is the point at which you will burn through cash to actualize the innovation items and administrations at your organization. Year 10 Useful Stage Year 2 Cool Stage

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2/10 Rule of Technology Adoption Examples: fax machine; desktop PCs; working frameworks; PDAs; GPS; cell phones; email and internet business. These items and administrations were propelled with extraordinary show that touted the way they would alter our lives. Every one of them neglected to experience their buildup in the good 'ol days. Be that as it may, every one of them have gone ahead to over-convey on their unique guarantees and desires.

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More Heresies Don't rely on upon clients standard clients at first reject problematic advancements Don't arrange customarily advertises that don't exist can't be dissected; arrangement to learn- - not to execute

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Historical

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