MGM102H5 Chapter Notes - Chapter 2: Paradigm Shift, Anne M. Mulcahy, Disruptive Innovation
Document Summary
Paradigm shift = occurs when a new technology or business model comes along that dramatically alters the nature of demand and competition. More improvements in the fist 50 years of the commercial aerospace business than the second 50 years. The contenders for the replacement tech. are not as effective as the established tech. in producing the attributes and features consumers demand in a product. The replacement technology may not have better functionality: automobiles had more drawbacks. Automobile was at the very start of its s-curve horse and cart was at the end of its s-curve. Electric cars was another shift in automotive technology. Perhaps oil/gas-based cars are at the edge of a major paradigm shift. The successor technology is initially less efficient than the established technology. Often there is not one potential successor technology but a swarm of potential successor technologies, only one of which might ultimately rise to the fore.
