Disruptive Innovation

Question 1

Drivers of Kodak’s Sucess

Answer 1

1. First mover - innovations like color film, photo-finishing
2. Low cost cameras that are easy to use
3. Marketing
4. R&D
5. Retail presence

Question 2

Razor blade strategy

Answer 2

Kodak sold cameras at a low price and profited from selling films

Question 3

Disruption of Kodak

Answer 3

Digital imaging / cameras begin to slowly substitute traditional photography

Question 4

Photo CD

Answer 4

Discs designed to hold ~100 high quality images, attempt at becoming the new blade that would replace film

Question 5

Fisher

Answer 5

attempted to change Kodak from a bade business to a blade and razor business

Question 6

Disruptive Innovation

Answer 6

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

Question 7

Common DI Insights

Answer 7

1. Disruption is often a slow process
2. Disruptors have a drastically different business model
3. Key for the incumbents is to respond but not over react

Question 8

Overcoming Inertia (individual)

Answer 8

1. Seek different perspectives
2. See how your business fits into industry movement
3. Keep an open mind
4. Set deadlines and revaluate
5. Take calculated risks

Question 9

Confirmation Bias

Answer 9

We tend to accept information unquestionably when it reinforces some predisposition we
have or some existing belief or attitude.

Question 10

Disconfirmation bias

Answer 10

We tend to be unduly skeptical of information that contradicts some predisposition we have or
our point of view.

Question 11

Overcoming Inertia (company)

Answer 11

1. Critically evaluate your products
2. Re-evaluate constraints
3. Embrace ambiguity
4. Encourage innovation