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The Innovators Dilemma

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'The Innovator's Dilemma' Aaron Mizrahi. Vinny Dondero ' ... A concept created by Clayton Christensen, Professor at Harvard Business School ... – PowerPoint PPT presentation

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Title: The Innovators Dilemma


1
The Innovators Dilemma
  • Aaron Mizrahi
  • Vinny Dondero

what can cause smart people to make the wrong
decisions
2
Background
  • A concept created by Clayton Christensen,
    Professor at Harvard Business School
  • Christensen believes that well-run and
    established firms lose market share by not
    recognizing the difference between sustaining and
    disruptive technologies

3
Characteristics of Disruptive Technologies
  • Less expensive to manufacture
  • Simpler to use
  • Smaller in size
  • Performs better
  • More reliable
  • More convenient to use

4
Examples of Disruptive Technologies
  • Internet Appliances
  • Main competition with high-performance PCs
  • Will become more widely used as high-speed
    Internet becomes more readily available
  • Wireless Devices
  • Main competition with landline communication
    devices
  • Nurse Practitioners
  • Main competition with medical doctors

5
Is a technology disruptive?
  • Does a growth opportunity exist?
  • Can it attract customers away from the mainstream
    market?
  • Can the incumbent respond?

6
F.W. Woolworth Co.
7
F.W. Woolworth Co.
  • F.W. Woolworth Co.
  • Accepting a lower Gross Margin, with a higher
    rate of inventory turns increases the Return on
    Inventory Investment.

8
Wireless Phones
9
Wireless Phones
  • Wireless Phones
  • By 2003 there will be more wireless phone users
    that wireline telephones and PCs.

10
ConclusionQuestions?
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