AN101 Chapter Notes -Disruptive Innovation, Life Insurance, Financial System
Document Summary
How different types of innovation impact existing firms. Challenge value of existing capabilities and or structure. Radical innovation (e. x. calculator compared to slide rule) Modular innovation (e. x. digital camera compared to film camera) Innovation (e. x. desktop computers compared to ibm mainframes) Innovation (e. x. image stabilizing feature added to digital cameras) Architectural affects how components or parts are linked together to make the product not the components themselves. Components weren"t changed the architecture of how it was built changed. The knowledge is not challenged because the components are the same. Easier to respond to modular change when they don"t have to change their structure. Enter with a totally different product in a market that large firms won"t be interested in: not their mainstream, not what they are good at, margins are too small or market too small. Asymmetry of motivation pick a fight the big companies aren"t motivated to fight! How to avoid failure if you are the large firm.
