MIS 301 Chapter Notes - Chapter 6: Mint.Com, Disruptive Innovation, Kodak

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 301
• Professor: Joshua Rock

Document Summary

Disruptive technologies: understanding the giant killers and tactics for avoiding extinction. True disruptive technologies have two characteristics that make them so threatening: 1) come to market with a set of performance attributes that existing customers. 2) over time the performance attributes improve to the point where they invade don"t value established markets. E. g early digital cameras were = bad kept improving to ruin kodak etc. Disruptive innovations don"t need to perform better than incumbents; they simply need to perform well enough to appeal to the customers of the incumbents. They listen to their customers and focus on the bottom line b/c shareholder owned. Big firms don"t dedicate resources to developing the potential technology or nurturing the needs of a new customer base. Increasing conversations across product groups and between managers and technologists can also be helpful. It"s common for many firms to regularly rotate staff. Many disruptive firms started by big corp. employees.