Dealing with disruptive innovations

There are different ways of dealing with a disruptive innovation each with its own pro's and con's:

1. Not responding at all
   1. Paying to little attention is usually more harmful than paying to much attention
2. Migrating/Harvasting
   1. This is a less passive form than not responding at all. It is a conscious decision to 'milk existing resources'.
3. Defending
   1. Is an active response to the new threatening businnes model. This is usually difficult to do as a Disruptive innovation tends to have faster improvement dynamics
4. Straddling
   1. Means to hold on to the old Business Model while simultaneously introducing the new one. This tries to combine the best of both worlds but has also major risks:
   2. Continuing the investment in what no longer works masks unwillingness to make tough choices and can lead to waste of resources
   3. The strategy can lead to Cramming. Cramming means that the new technology only is used to improve the 'old' business model. The full scale of new possiblities of the new technology leaves untapped.
5. Switching completely
   1. Is a more radical approach since it entails a complete switch to the new business model
   2. But as all resources are focussed on the new strategy it is a huge 'all or nothing' bet.
6. Leapfrogging
   1. means that companies try to 'out-substitute' the substitution. This is highly attractive from a longer term perspective but requires a deep understanding of technology and market demand. It is also essentional to get the timing right.

Part of: M8-S2 - Reading - Strategies for E-Business - Chapter 6 - Sustaining Competitive Advantage