Difference between revisions of "Recognizing a disruptive threath"

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Common mistakes when recognizing a disruptive thread are:
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Recognizing a disruptive threath
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# Companies believe that their most advanced/high end customers will be key to recognizing a disruptive technology. In contrast, disruptive innovations have their roots with over-served customers or customers who did not have access to the product before.
 
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# Managers pay most attention to their largest competitors. But succesful disruptors are often not even on the radar of the incumbents.
 
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# Conventinal thinking suggest that companies with the biggest R&D budget are likely to disrupt. In contrast, companies that succeed disrupting an industry serve customers that the existing competition does not want to serve
 
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To avoid these mistakes ask the following questions dealing with:
 
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# '''Non-served customers'''
 
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## Is there a group of people who previously did not have the money or skills to purchase the current offering?
 
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## Did customers have to go to a central inconvenient location to buy the product?
 
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# '''Over-served customers'''
 
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## Are there customers at the bottom of the market who would buy the same product for a lower price?
 
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## Is it possible to build a profitable business model while keeping down prices?
 
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## An indicator of over-served customers is that they do not use many of the features that are offered in the most recent version of the product.
 
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# '''Disruptive to competitors'''
 
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## Is the innovation disruptive to all companies that are currently competing in a market?
 
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## This reveals a crucial point that innovations are only disruptive in relation to an existing business model or technology.
 
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Part of: [[M8-S2 - Reading - Strategies for E-Business - Chapter 6 - Sustaining Competitive Advantage|M8-S2 - Reading - Strategies for E-Business - Chapter 6 - Sustaining Competitive Advantage]]
 
 
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Revision as of 19:20, 27 August 2020

Recognizing a disruptive threath