Mis4596 information systems implementation
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MIS4596: Information Systems Implementation. Week 7 - Identification and evaluation of innovative opportunities David Schuff [email protected] What is an innovation?. A new way of doing something Can be the process or the outcome So a touch screen phones could be an innovation

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MIS4596: Information Systems Implementation

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Mis4596 information systems implementation

MIS4596: Information Systems Implementation

Week 7 - Identification and evaluation of innovative opportunities

David Schuff

[email protected]


What is an innovation

What is an innovation?

A new way of doing something

Can be the process or the outcome

So a touch screen phones could be an innovation

And so could a process improvement for more quickly fulfilling orders


Why bother

Why bother?

Opportunities for new entrants may equate to risks for existing companies

  • Defense of business

    • Negative differentiation

  • Significant potential return

    • Positive differentiation


Types of innovation christensen

Types of innovation (Christensen)

Sustaining or disruptive?

source: http://en.wikipedia.org/wiki/Disruptive_technology

  • Sustaining

    • Evolutionary

      • improves existing product/process in an expected way

    • Revolutionary

      • radical; solves existing problem in a new way

  • Disruptive

    • Creates a new and unexpected market; changes values

    • Christiansen originally called it “disruptive technologies” but later changed to “innovation”


Progression of a disruptive innovation technology

Progression of a disruptive innovation/technology

New innovations develop until they are in a position to take over the mainstream market.

Initially, though, they may be ignored.

Why?

Performance improvement required by mainstream market

Performance

Expected trajectory of performance improvement

Current performance of potentially disruptive innovation

Time

adapted from: “Catching the Wave,” Christensen (1995)


Progression of a disruptive innovation technology1

Progression of a disruptive innovation/technology

As the new innovation improves, it takes over increasingly sophisticated market segments.

Example: Linux

source: http://en.wikipedia.org/wiki/Disruptive_technology


Emerging technologies day and schoemaker

Emerging Technologies (Day and Schoemaker)

adapted from: “Evaluating the Pitfalls of Emerging Technologies,” Day and Schoemaker (2000)

  • Science-based innovations that have the potential to create a new industry or transform an existing one

  • They include

    • Evolutionary technologies

      • What Christensen calls “sustaining”

    • Discontinuous innovations

      • What Christensen calls “disruptive”


Gartner hype cycle for new technologies 2008

Gartner Hype Cycle for New Technologies (2008)


New entrants and incumbents

New entrants and incumbents

  • Choose a “new technology”

    • Who are the new entrants?

    • Who are the incumbents?


The pitfalls of emerging technologies

The Pitfalls of Emerging Technologies

What are the four pitfalls to which firms fall victim (according to Day and Schoemaker)?

What do they have in common?


Avoiding the pitfalls

Avoiding the pitfalls

  • What is Day and Schoemaker’s general advice for avoiding the four pitfalls?

  • How can each be implemented?

  • Christensen’s “pitfall” - staying too close to the customer

    • What does this mean?

    • Is it consistent with Day and Schoemaker?


Case discussion

Case discussion

VMWare Inc., 2008


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