Disruptive Innovation Flashcards
Drivers of Kodak’s Sucess
- First mover - innovations like color film, photo-finishing
- Low cost cameras that are easy to use
- Marketing
- R&D
- Retail presence
Razor blade strategy
Kodak sold cameras at a low price and profited from selling films
Disruption of Kodak
Digital imaging / cameras begin to slowly substitute traditional photography
Photo CD
Discs designed to hold ~100 high quality images, attempt at becoming the new blade that would replace film
Fisher
attempted to change Kodak from a bade business to a blade and razor business
Disruptive Innovation
A change to an industry that is difficult for incumbents to prepare for, originates usually in lower-end products until quality catches up
Disruptors create a market that previously did not exist
Common DI Insights
- Disruption is often a slow process
- Disruptors have a drastically different business model
- Key for the incumbents is to respond but not over react
Overcoming Inertia (individual)
- Seek different perspectives
- See how your business fits into industry movement
- Keep an open mind
- Set deadlines and revaluate
- Take calculated risks
Confirmation Bias
We tend to accept information unquestionably when it reinforces some predisposition we
have or some existing belief or attitude.
Disconfirmation bias
We tend to be unduly skeptical of information that contradicts some predisposition we have or
our point of view.
Overcoming Inertia (company)
- Critically evaluate your products
- Re-evaluate constraints
- Embrace ambiguity
- Encourage innovation