In The Innovators Dilemma Professor Clayton Christensen asks

“In The Innovator’s Dilemma, Professor Clayton Christensen asks the question: Why do well-managed companies fail? He concludes that they often fail because the very management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop the disruptive technologies that ultimately steal away their markets. Disruptive technologies have other attributes that a few fringe customers value. One of the hallmarks of disruptive technologies is that initially they underperform the current technology on the attributes that matter most to mainstream customers.

1. Can you think of any markets that are emerging today based on attributes or qualities that seemed unimportant to the mainstream markets when they were introduced? What older, mainstream products or companies are threatened?

2. What are the corporate factors that lead mid-level employees to ignore or kill disruptive technologies? Should well-managed companies change these practices and policies?

3. Professor Christensen argues that “disruptive technology should be framed as a marketing challenge, not a technological one.” As a manager, how do you decide when a technology—or idea—needs more development and when it\'s time to aggressively put it on the market?”

Solution

Q1) Example of a market that is emerging today based on attributes or qualities that seemed unimportant to the mainstream markets when they were introduced is Driverless car market. When the idea of Driverless vehicle emerged, it was considered as a near impossible innovation considering the safety and security issues that come up with the same. Now, firm\'s have been innovating in the same with top technology firms launching their own unmanned vehicles.

Q2) The corporate factors that lead low-level employees to ignore or kill disruptive technologies include -

1. Expanding the current business

2. Concentrating on the regular operations

3. Strategic decision making at management level

4. Sole focus on performance based on achievement of project objectives etc.

5. Budget constraints for research and development.

To remain competitive in the marketplace, well-managed companies need to update with new technologies that are more efficient and increase organizational productivity.

Q3) The right time to work on a new technology development is when the market growth comes to a standstill with the existing technologies being implemented by all competing firms. Also, changing consumer tastes and preferences is another indicator.