The aim of every innovation are to l. change the rules (as blue ocean) or the industry and 2. to disrupt the industry.
The key ideas here came from Clayton Christianssen of Harvard Business School. (He authored key ideas on business model - the new thing since strategy) He also wrote on the Innovator's dilemna. He found out that the successful innovations are not the high tech or sophisticated ones. The market, for which the technological innovation has been chosen, chose low tech, low cost, afforadable, lighter version. This was observed in the memory industry- the equivalent of studying livng things is through fruit flies where everything is accelarated.
Examples of disruptive products and services are: Wikipedia (it caused the demise of Encyclopedia Britannica and Encarta), Skype (disrupted telcos?), Sun Cellular with its unlimited text and call disrupted other Big Telcos in the Philippines, Cebu Pacific disrupted PAL (the shipping lines, the bus companies).
Why are they disruptive?
But wait, something seems to go wrong here. Prof, I thought innovation is creating value with existing resources. But what happenned to Wikipedia - it nuked a $l billion encyclopedia industry. Yes it was disrupted but brought back the value to customers. Nothing was destroyed.
There is more on my slides at slideshare, under the title "Innovation and Entrepreneurship."
Slideshare - Innovation and Entrepreneurship by Peter Drucker
"Every generation needs a revolution an ENTREPRENEURIAL REVOLUTION."
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