Framework: Disruptive innovation (Innovator's Dilema)
Core Question: How should firms consider innovation within industry analysis and their technology strategies?
Key Application Steps:
Determine which technologies are disruptive and their strategic significance
Locate the initial markets for these technologies
Perhaps most important to pursue disruptive ideas is an organizational context that is: (1) separate (2) allows for experimentation in small markets, and (3) has sufficiently low overhead
Comparisons with other concepts and frameworks:
Many strategy frameworks do not systematically treat innovation; rather, they treat innovation as some random variable
The model explains why the most serious technological threats often come from new entrants to an industry
Illustrative Decision Contexts:
How can I analyze markets that are only emerging and are threatening my firm?
Should I pursue a disruptive innovation or sustaining innovation as an incumbent? As a new entrant?
How should I manage sustaining vs. disruptive innovations properly?
Real world example/HBR Case:
- HP Kittyhawk Disk Memory Division (vs. Seagate and IBM)
