L03 A: Christensen, C. M., McDonald, R., Altman, E. J., & Palmer, J. E. (2018). Disruptive innovation: An intellectual history and directions for future research.

Question 1

Anomalies observed in article

Answer 1

Anomalies (unexpected observations):

(1) Sometimes incumbent resources to disruptive innovations flow freely depending on perception of innovation as threat (greater allocation of resources) or opportunity.

(2) Leading incumbents can maintain position by setting up autonomous business units, separate from their parent companies and granting them the freedom to adopt their own processes and pursue disruptive opportunities.

Question 2

More precise categorization of disruptions:

Answer 2

Low-end disruptions (initial model):
upstarts enter at the bottom of the market and take hold within the existing value network before moving up-market and attacking incumbents.

New-market disruptions:
occur in completely new value networks whose initial customers have not used prior generation of products and services, thus entrants compete for customers that would otherwise go without the product or service (non-consumption).

Question 3

Disruptive innovation

Answer 3

Initially inferior to incumbent products on accepted performance dimensions, offers a novel mix of attributes that appeals to fringe customer groups (near the bottom of the market) may be smaller, cheaper, more accessible, or more convenient.

Question 4

Strategies for dealing with disruption:

Answer 4

(1) Create autonomous organizational unit to develop and commercialize new innovation; (Transition/Offensive)

(2) Aggressively invest in existing capabilities to extend current performance-improvement trajectories to slow or delay onset of disruption; (Race/Defensive)

(3) Proactively reposition in profitable new niches; (Retreat / Defensive / Offensive)

(4) Use organizational ambidexterity (enacting dual structures, processes, and subcultures, as well as a cognitively flexible executive team) to manage conflicts expected to arise from pursuing different types of innovations simultaneously exploring via emerging business and exploiting via existing business may help resolve innovator’s dilemma; (Transition/Offensive)

(5) Co-opt disruptive entrants once they start challenging incumbents’ market leadership by partnering with or licensing startups’ technology once it reaches certain threshold, or by introducing a new platform;

(6) Disrupted incumbents can pursue a technology reemergence strategy by redefining the meanings and values associated with their legacy technology, as well as by redefining the boundaries of the market they compete in.