MGT 3659 Chapter Notes - Chapter 7: Disruptive Innovation, Network Effect, Externality
Document Summary
Architectural innovation a new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets. Crossing-the-chasm framework conceptual model that shows how each stage of the industry life cycle is dominated by a different customer group. Disruptive innovation an innovation that leverages new technologies to attack existing markets from the bottom up. Entrepreneurs the agents that introduce change into the competitive system. Entrepreneurship the process by which people undertake economic risk to innovate. To create new products, processes, and sometimes new organizations. First-mover advantages competitive benefits that accrue to the successful innovator. Incremental innovation an innovation that squarely builds on an established knowledge base and steadily improves an existing product or service. Industry life cycle the five different stages introduction, growth, shakeout, maturity, and decline that occur in the evolution of an industry over time. Innovation the commercialization of any new product or process, or the modification and recombination of existing ones.
