Turun kauppakorkeakoulu Turku School of Economics

WHO IS WATCHING CLOUD – ANGELS OR DEMONS?

Tingting Lin

DISRUPTED DISRUPTIONSLessons from Potential Disruptive Innovations that barely disrupted

Abayomi BaiyereUniversity of Turku, Finland speak2ab

Abayomi Baiyere

This paper was presented at The XXV ISPIM Conference – Innovation for Sustainable Economy & Society, Dublin, Ireland on 8-11 June 2014.

Turun kauppakorkeakoulu Turku School of Economics

BACKGROUND

Introduction Methodology Results & Analysis Discussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

BACKGROUND

Introduction Methodology Results & Analysis Discussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

MOTIVATION

Methodology Results & Analysis Discussion & Contributions

Introduction

Turun kauppakorkeakoulu Turku School of Economics

MOTIVATION

Methodology Results & Analysis Discussion & Contributions

Introduction

Turun kauppakorkeakoulu Turku School of Economics

MOTIVATION

Methodology Results & Analysis Discussion & Contributions

Introduction

Turun kauppakorkeakoulu Turku School of Economics

MOTIVATION

Methodology Results & Analysis Discussion & Contributions

Introduction

However…

When really can an innovation be considered a disruptive Innovation?

Potential DI Disrupted DI

Turun kauppakorkeakoulu Turku School of Economics

OBJECTIVE

Introduction Methodology Results & Analysis Discussion & Contributions

key attributes that characterizes disrupted disruptions and potential disruptive innovations…

lessons can be extracted from DD & PDI for managers facing threats of disruptive innovation…

Identify and Inform about

Turun kauppakorkeakoulu Turku School of Economics

DATA SOURCE

MethdodologyIntroduction Results & Analysis Discussion & Contributions

Literature Review | Expert Interviews | Archival Data

Turun kauppakorkeakoulu Turku School of Economics

CONCEPTUALISING POTENTIAL DI

Introduction Results & Analysis Discussion & ContributionsMethodology

Nature of Disruptive InnovationsDifficult to label ex-ante It is a relative phenomena.

Pot

entia

l Dis

rupt

ive

Inno

vatio

n

Turun kauppakorkeakoulu Turku School of Economics

CONCEPTUALISING DISRUPTED DISRUPTION

Introduction Results & Analysis Discussion & ContributionsMethodology

Pot

entia

l Dis

rupt

ive

Inno

vatio

n [P

DI]

Disruptive Innovation[DI]

Disrupted Disruption [DD]

Turun kauppakorkeakoulu Turku School of Economics

DIFFERENTIATING PDI, DD & DI

Introduction Results & Analysis Discussion & ContributionsMethodology

Turun kauppakorkeakoulu Turku School of Economics

DIFFERENTIATING PDI, DD & DI

Introduction Results & Analysis Discussion & ContributionsMethodology

DI D

iffer

entia

tion

Fram

ewor

k

Turun kauppakorkeakoulu Turku School of Economics

PDI CASE EXAMPLE

Introduction Results & Analysis Discussion & ContributionsMethodology

Mob

ile-D

riven

Inno

vatio

n

Turun kauppakorkeakoulu Turku School of Economics

PDI CASE EXAMPLE

Introduction Results & Analysis Discussion & ContributionsMethodology

1 - Directly valued by high paying customers 2 - Valued as a supplement rather than a substitute 3 - Creates new market 4 - Appeals directly to same customers 5 - Not necessarily simpler/ more convenient but rather different. 6 - Serves existing consumers 7 - Not necessarily simpler however cumbersome to mount 8 - Adoption currently in the infancy stage

Turun kauppakorkeakoulu Turku School of Economics

DD CASE EXAMPLE

Introduction Results & Analysis Discussion & ContributionsMethodology

Google Docs

Nintendo Wii

Tata Nano

Minicomputers

Turun kauppakorkeakoulu Turku School of Economics

DD PROPOSITIONS

Introduction Discussion & ContributionsMethodology

Proposition D (Direct competition): If the initial offering of a Potential Disruptive Innovations is not ‘directly competing’ for the

mainstream customers, the chances of ultimately becoming disruptive is higher.

Results & AnalysisDiscussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

DD PROPOSITIONS

Introduction Discussion & ContributionsMethodology

Proposition I (Ignore): If a potential disruptive innovation is acknowledged 'early and not ignored', the likelihood of it

significantly disrupting the market position of the responder can be limited.

Results & AnalysisDiscussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

DD PROPOSITIONS

Introduction Discussion & ContributionsMethodology

Proposition V (Velocity of adoption): The 'velocity of adoption' of a potential disruptive innovation is one of the parameters that can

significantly determine if it will eventually develop to be disruptive.

Results & AnalysisDiscussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

DD PROPOSITIONS

Introduction Discussion & ContributionsMethodology

Proposition E (Entrants): New ‘entrants' to a market/industry are more likely to disrupt than incumbents.

Results & AnalysisDiscussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

DIVE MODEL

Introduction Discussion & ContributionsMethodology Results & Analysis

Discussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

CONCEPTUALISING DISRUPTED DISRUPTION

Introduction Discussion & ContributionsMethodology

Pot

entia

l Dis

rupt

ive

Inno

vatio

n [P

DI]

Disruptive Innovation[DI]

Disrupted Disruption [DD]

By Design

By Response

Results & AnalysisDiscussion & Contributions

Turun kauppakorkeakoulu Turku School of Economics

Y O U

T H A N K

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speak2ab

Abayomi Baiyere