In general, \old products based on sustaining technology are perceived to be superior to the \new ones based on disruptive technology. As opposed to disruptive technology, sustaining technology relies on incremental improvements and innovations to an already established technology. Sustaining technology can be subdivided into two categories. A technology that significantly alters the way that businesses operate. By using a quicktomaster evaluation and decisionmaking framework structured around the key dimensions of technology, behaviour and data tbd. The main differentiation that i make is that sustaining innovation comes from listening to the needs of customers in the existing market and creating products that satisfy their predicted needs for the. If disruptive technology will be available then potential impact on hardware could be.
An important note is that while the concept of disruptive technology is widely used, disruptive innovation is a more useful concept because few technologies are intrinsically disruptive. Christensen and his collaborators beginning in 1995, and has been called the most. Ch1 cha ch2 chayk ch3 chb ch4 chc ch5 ch6 ch7 ch8 ch9 problem. Sustaining innovations or technologies do not create new markets but rather evolve existing ones with a better value, allowing the firms to compete against each others. Digital disruption and disruptive innovation is the new. The theory of disruptive innovation i presents some intriguing inconsistencies for. Sustaining technology article about sustaining technology.
Disruptive innovation can help any buyer and sellers market including ageold industries like construction, agronomy, and robotics. In each case, the incumbents benefited from these nondisruptive, or sustaining innovations. Disruptive and sustaining innovation strategic toolkits. They go way beyond inventions because they have an economic impact on the surroundings. I had also assumed that disruptive was always about new or breakthrough technology.
Disruptive technology, innovators dilemma, sustaining innovation disruptive technology a new technology that has a serious impact on the status quo and changes the way people have been dealing with something, perhaps for decades. Disruptive technologies provides a clear roadmap to assess, respond to and problemsolve. Although this book lists only one author, in reality the ideas it molds together were. Sustaining vs disruptive technologies startup iceland. Dru jm coined the term creative disruption to explain the radical but purposeful changes in the market 7. Jun 19, 2017 the motivation of the technology industry is, after all, to have everyone online all the time. The difference between sustaining innovation and disruptive. In particular, a disruptive innovation may or may not represent a major technical breakthrough. Christensen differentiated disruptive innovation from sustaining innovation. Disruptive innovation is harder to achieve because. This book offers the knowledge and tools to engage confidently with emerging technologies for better business. The benefits of disruptive innovation and marketing. Dialogue on the effects of disruptive technology on firms and industries.
Guide to 12 disruptive technology examples intelligenthq. When something gainful is created it should be termed as disruptive innovation and not just disruption. At the beginning, disruptive technologies address only a small fraction of a market. Most technological advances in a given industry are sustaining in character. The electronic book, or ebook, is a book that is read on a computer or other electronic device2. There are two kinds of technologies sustaining and disruptive technologies. For example, i had thought that disruptive innovation was the holy grail. Authors will go digitalfirst and the most successful will land a traditional book deal. An innovation that does not principally affect existing hpc. Pctw 70 sustaining vs disruptive innovation duration. Pdf how useful is the theory of disruptive innovation. One of the challenges posed by disruptive innovation is its argument that an inferior technology can triumph. In other words, incumbents value sustaining over disruptive innovations. It is, after all, built upon the foundation of virtualization, an existing and.
Report on disruptive technologies for years 20202030. Conflict of disruptive technology and innovation within china and the characteristics of the chinese highspeed railway prompt further research for scholars and practitioners. The motivation of the technology industry is, after all, to have everyone online all the time. Clayton christensen massachusetts institute of technology. And when new technology is developed, disruption theory does not dictate what managers should do.
Sustaining vs disruptive innovation matt west design. How disruptive innovation can finally revolutionize healthcare. So what is this difference between sustaining vs disruptive technology you ask. Jul 01, 20 pctw 70 sustaining vs disruptive innovation duration.
Disruptive technologies is a new way of doing things. In addition, there seems to be confusion in the use of the terms disruptive technology and disruptive innovation christensen, 2006. Sustaining innovations are important when organizations try to serve their cash cows better. Any technology that causes a revolution in traditional business models. Both sustaining innovation and disruptive innovation are not easy to achieve. Aug 25, 2017 a disruptive innovation helps create a new market and value network. Disruptive technology vs sustaining technology christensen contrasts disruptive technology and sustaining technology. Di occurs so intermittently that no company has a routine process for handling them. However, according to christensen, who coined the term in his 1997 book, the innovators dilemma, the ridehailing app isnt an example of true disruptive innovation. In each case, the incumbents benefited from these non disruptive, or sustaining innovations. A disruptive technology is one that displaces an established technology and shakes up the industry or a groundbreaking product that creates a completely new industry.
There are many great example for disruptive innovation, but our three favorites are waze, airbnb and uber. The difference between sustaining and disruptive innovation is commonly misunderstood by many in business. In the technology mudslide hypothesis, christensen differentiated disruptive innovation from sustaining innovation. In general, \old products based on sustaining technology are perceived to be superior to the ew ones based on disruptive technology. He describes the term further in his book the innovators dilemma. Sustaining technology synonyms, sustaining technology pronunciation, sustaining technology translation, english dictionary definition of sustaining technology. Is amazon using disruptive or sustaining technology to. Identifying the next disruptive technology curve is. The journal of product information management, 23, pp. For automation of knowledge work, we received input from rickard carlsson, alex incecushman, alex. At first glance, one might evaluate it as sustaining.
Is amazon using disruptive or sustaining technology. In addition, sustaining technologies provide obvious improvements in the. Amazon is as successful as it is because they put the customer first. This highly practical book offers organizations a distinct response to emerging technologies including blockchain bitcoin, artificial. What is the difference between disruptive innovation and. To sort the different technologies we define types of innovation adapted to hpc as. Advances that will transform life, business, and the global economy mckinsey global institute were our experts in mobile internet technology. Pdf the concept of disruptive innovation has gained considerable currency among practitioners despite widespread.
The term disruptive technology has been widely used as a synonym of disruptive innovation, but the latter is now preferred, because market disruptio. Pdf on nov 1, 2019, julie frizzobarker and others published blockchain as a disruptive technology for business. For example, you can directly compare a manual typewriter with an electric. In his book, the innovators dilemma 3, professor clayton christensen of harvard business school describes a theory. Their business models are to monetize data rather than to charge cell, data, or access fees. Sustaining technologies as the above graph shows, disruptive technologies cause problems because they do not initially satisfy the demands of even the high end of the market. These companies have made it big in a certain domain and introduced disruptive technologies that have become market leaders. Dec 01, 2015 innovations are inventions applied to the market, thrown into the economic system to proliferate and generate revenue and profit.
The main reason of it is that leading companies stay close to their customers and their needs. Sustaining vs disruptive innovation the difference between sustaining and disruptive innovation is commonly misunderstood by many in business. The innovators dilemma, according to christensen, describes companies whose successes and capabilities can actually become obstacles in the face of changing markets and technologies. While disruptive technology can produce an effect of a bomb sudden, tremendous, and radical change, sustaining technology does not significantly affect the market.
Disruptive technologies seem to be financially unattractive and risky. Innovations are inventions applied to the market, thrown into the economic system to proliferate and generate revenue and profit. Chapter 14 the electronic book as a disruptive technology. He explained that the latters goal is to improve existing product performance. For automation of knowledge work, we received input from rickard carlsson, alex incecushman, alex kazaks, nathan marston, and chad wegner. A disruptive innovation helps create a new market and value network. Disruptive innovation means to reinvent a technology, business model, or simply invent it all together. In his book christensen divides technology into two groups, sustaining and disruptive. Sustaining a technology requires continuous and incremental improvements to an already. Sustaining technology gives the customer the same that they already have and value, but with better attributes.
The technology makers are disruptive in more than one technology that they specialize in. Disruptive innovation creates new markets separate to the mainstream. In business theory, a disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established marketleading firms, products, and alliances. Identifying the next disruptive technology curve is easy in retrospect, hard in realtime. Sustaining technology produces an improved product customers are eager to buy. Disruptive innovation can create an entirely new market through the introduction of a new kind of product or service, one that is actually worst. In his book, the innovators dilemma, professor clayton christensen of harvard business school describes a theory about how large, outstanding firms can fail by doing everything right. Christensen in his book innovators dilemma, introduces the concept of disruptive technologies. Smartphones, cloud computing, social networking etc. Disruptive technologies outlines the steps businesses can take to engage with emerging technologies today in order to serve the consumer of tomorrow. Disruptive innovation is a term coined by harvard business school. Sustaining technologies are technologies that improve product performance. So is cloud computing a sustaining or disruptive innovation.
A disruptive technology may force companies to alter the way that they approach their business, risk. Is amazon using disruptive or sustaining technology to run. Because of that, large companies choose to overlook disruptive technologies until they become more attractive profitwise. Sustaining technology produces an improved product customers are eager to buy, sustaining technologies allow an organization to do their job better, to improve their products and to increase customer satisfaction. It is rare that a technology or product is inherently sustaining or disruptive. Is amazon using disruptive or sustaining technology to run its business. Sustaining technologies improve the performance of established products, along the dimensions of performance that mainstream customers in major markets have historically valued.
Sustaining technology definition of sustaining technology. The journal of product information management, 21 pp. And that incremental or sustaining innovation was the ugly duckling. For instance, cell phones began disrupting landlines and. In business theory, a disruptive innovation is an innovation that creates a new market and value. Let us take a look at these companies and their inventions. They give us a better, faster, cheaper product in an already established market. Sustaining innovation are nearly always developed and introduced by established industry leaders. Pdf blockchain as a disruptive technology for business.
Disruptive and sustaining innovation disruptive has lost its original meaning, and is now a jargon word applied to a broad range of innovations. Christensen winner of global business book award 1998, the. We study a special type of technology evolution, referred to in the literature as disruptive technology vs. Most of the elements of ubers strategy seem to be sustaining innovations. What is the difference between disruptive technology and. Disruptive innovation, a term of art coined by clayton christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
In his followup book, the innovators solution, christensen changed the term from disruptive technology to disruptive innovation, arguing that it was rarely the technology per. Startups that disrupt are much more likely to be successful. On the other hand, he defines a disruptive innovation as a product or service designed for a new set of customers. A disruptive innovation is one that changes the basis of competition in an industry for example in lowtier watches, swatch changes the basis of competition from accuracy to fashion.
Sound execution, speedtomarket, total quality management, and process reengineering are similarly ineffective. Disruptive innovation generates new markets and values, in order to disrupt existing ones. Christensens disruptive technology framework the term disruptive innovation is widely used today in the sense introduced originally as disruptive technology in christensens seminal work the innovators dilemma 1997. Wikipedias disruptive innovation page has the answer to the first portion of your question.
Focus on resources such as people, money, technology which is required to succeed at the sustaining innovation not. Jul 12, 20 wikipedias disruptive innovation page has the answer to the first portion of your question. Yet most of the innovation that has occurred has been sustaining to the industry rather than disruptive. The innovation eventually disrupts an existing market and value network. The main differentiation that i make is that sustaining innovation comes from listening to the needs of customers in the existing market and creating products that satisfy their predicted needs for the future.
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