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Business Disruptive

Technology
Session 2
Shiva Venkatraman
Adjunct Faculty
prof.shiva.venkatraman.spjain@gmail.com
Agenda
• The innovator’s dilemma
• Disruptive Innovation
• Types of Innovation
• Group Discussion
Christensen
• https://www.youtube.com/watch?v=qDrMAzC
HFUU
• https://www.youtube.com/watch?v=yUAtIQDl
lo8
• https://www.youtube.com/watch?v=WxwR_T
TuKdc
• https://www.youtube.com/watch?v=gfr3uLbC
22Y
Disruptive vs Sustaining Innovation
Disruptive Innovation Sustaining Innovation
• Making new, often lesser • Making current products for
featured products for newer current customers better
customers • Expensive – Few
• Cheaper – Larger people/businesses can
population can access it access it
• E.g. Mainframe computers • E.g. Laptops cost cheaper
in the 1970s (Cost Millions) and made computing
accessible to all
A graphical difference

Examples of winners: Open source, Bitcoin, Others?


Exceptions: Tata Nano (why?)
Innovator’s Dilemma
• Make current products better
Versus
• Make newer products that are cheaper with
smaller feature sets for newer customers
• E.g. General Motors disrupted by Toyota by
Kia (Korean)
• E.g. Should Tata have continued its current car
lineup instead of launching the Nano?
• Other examples?
Some examples

Disruptor Disruptee
Personal computers Mainframe and mini computers
Mini mills Integrated steel mills
Cellular phones Fixed line telephony
Community colleges Four-year colleges
Discount retailers Full-service department stores
Retail medical clinics Traditional doctor’s offices
Another Framework: 4 Types of
Innovation
Group Discussion
• Breakout into your groups
• Pick a firm from an industry that you know
• Can you scan the market and figure out OR
predict how this firm could be DISRUPTED by a
Disruptive Innovation?
• Hint: You can look for what the VCs are
investing in this industry

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