Today’s topic of innovation management goes and discuss an important trend started by a research of Harvard Professor Clayton Christensen.
The topic is one of Technological Disruption. The main force, which allows small incumbents to compete against large players in the marketplace.
Not everybody is aware of this trend in Innovation Management is almost 30 years old, started in 1995 goes and analyses various technologies and industries in which innovations have brought to its knees big corporations.
As discussed in his introduction in the Innovator Dilemma, companies often fail because there are cheaper new technologies which allow targeting future customers revenue, even if at the time of the release of the original product they are unaware of the latest Technology.
Clayton divided its book into ten chapters and discussed in the first chapters about the failure to implement these new innovations.
At the same time, goes and proceeds by explaining success strategies in the field of business.
It’s essential to notice that most of the literature is wrong to target only to failure, but he builds his case against valid points. There are other schools which also sustain his thesis, which, define that most often is the management fault of big companies which make the company fail to implement or develop new technologies. In recent times, it is explained that this failure in management is not only due to new cheaper Technology, but also because successful companies try to compete in new market segments which are not ready.
There is a rationale behind all that, and that with the advent of the disruptor, the existing player has already focused its energy on his current strategy, thus, is unable to concentrate his effort to the new Technology.
In my latest article, I gave a little explanation of what disruption management should be about, but I forgot to mention the importance of disruption in business.
According to research from Stanford University, every disruption brings prosperity as GDP grows, and so does the spending.
Currently there the trend is in the banking industry.
New technologies have been developed that allow for a better mobile banking experience, and the economist goes and explains that there could be saving for each person if these new technologies are implemented.
Currently, I have not completed the section about disruptive technology because it is a chapter which I’m reading currently about in my literature research, so please do allow me some more time to collect more informations about new technologies such as bitcoin and blockchain and how they can be implemented in other markets and industries, not only in the financial sector.
Currently, I’m also reading Hernando De Soto, Why Capitalism Triumph in the west and fails elsewhere, and I believe that this two topics can be interconnected, as his thesis is about property law and services to extralegal, and I’m becoming a fan of this topic.