The Innovator’s Dilemma Reviewed by: Candace Carner Mary Ann Griffith Jessica Hounshell Joe Juby

The Innovator’s Dilemma

Reviewed by:Candace CarnerMary Ann GriffithJessica HounshellJoe JubyJoe LanganTony PrinzoJanis Thiedemann

Presentation Format

• Overview of the Book: 30 minutes• Principles of Disruptive Technology• Advice for Managers• Case Study: Electric Automobiles

• Open Discussion & Questions: 30 minutes

• Interactive Class Exercise: 30 minutes

Why do well-managed companies fail?

• The management practices that have allowed them to become industry leaders also make it extremely difficult for them to develop the disruptive technologies that ultimately steal away their markets.

• Good management was the most powerful reason they failed

• Widely accepted management principles are only situationally appropriate

Sustaining Technology Disruptive Technology

Disruptive Technologies…

• Have caused some of the best companies in the world to fail• Can occur quickly as well as over time• Can be complex or simple• Lead to failure when the “Principles of

Disruptive Technology” aren’t followed

Principles of Disruptive Technology

1. Companies depend on customers and investors for resources


1. Companies depend on customers and investors for resources (slide 2 if needed)


2. Small markets don’t solve the growth needs of large companies


2. Small markets don’t solve the growth needs of large companies (slide 2 if needed)


3. Markets that don’t exist can’t be analyzed


3. Markets that don’t exist can’t be analyzed (slide 2 if needed)


4. Technology supply may not equal market demand


4. Technology supply may not equal market demand (slide 2 if needed)

Advice for Managers Facing Disruptive Technologies

1. Give responsibility for disruptive technologies to organizations whose customers need them so that resources will flow to them.


1. Give responsibility for disruptive technologies to organizations whose customers need them so that resources will flow to them. (slide 2 if needed)


2. Set up a separate organization small enough to get excited by small gains.


2. Set up a separate organization small enough to get excited by small gains. (slide 2 if needed)


3. Plan for failure. Don’t bet all your resources on being right the first time. Initial efforts are learning opportunities. Make revisions as you gather data.


3. Plan for failure. Don’t bet all your resources on being right the first time. Initial efforts are learning opportunities. Make revisions as you gather data. (slide 2 if needed)


4. Don’t cut on breakthroughs. Move ahead early and find the market for the current attributes of the technology. You will find it outside the current mainstream market.


4. Don’t cut on breakthroughs. Move ahead early and find the market for the current attributes of the technology. You will find it outside the current mainstream market. (slide 2 if needed)

Managing Disruptive Technological Change: A Case Study

Add whatever you need…should be no more than about ten slides

The Innovator’s Dilemma Reviewed by: Candace Carner Mary Ann Griffith Jessica Hounshell Joe Juby

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