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MIS4596: Information Systems Implementation. Week 7 - Identification and evaluation of innovative opportunities David Schuff David.Schuff@temple.edu. 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

MIS4596: Information Systems Implementation

Week 7 - Identification and evaluation of innovative opportunities

David Schuff


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.


Performance improvement required by mainstream market


Expected trajectory of performance improvement

Current performance of potentially disruptive innovation


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”

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