This document discusses disrupted disruptions and potential disruptive innovations. It defines disrupted disruptions as innovations that were initially thought to be disruptive but ultimately failed to disrupt the market. Potential disruptive innovations are innovations that have the potential to disrupt but have not done so yet. The document presents case examples and propositions to differentiate these concepts. It proposes a framework called DIVE to help conceptualize how potential disruptions can develop into either disrupted disruptions or true disruptive innovations. The goal is to help managers address threats from disruptive innovations.
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Disrupted Disruptions. Lessons from Potential Disruptive Innovations that barely disrupted.
1. Turun kauppakorkeakoulu Turku School of Economics
WHO IS WATCHING CLOUD – ANGELS OR
DEMONS?
Tingting Lin
DISRUPTED DISRUPTIONS
Lessons from Potential Disruptive
Innovations that barely disrupted
Abayomi Baiyere
University 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.
2. Turun kauppakorkeakoulu Turku School of Economics
BACKGROUND
Introduction Methodology Results & Analysis
Discussion &
Contributions
3. Turun kauppakorkeakoulu Turku School of Economics
BACKGROUND
Introduction Methodology Results & Analysis
Discussion &
Contributions
4. Turun kauppakorkeakoulu Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
5. Turun kauppakorkeakoulu Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
6. Turun kauppakorkeakoulu Turku School of Economics
MOTIVATION
Methodology Results & Analysis
Discussion &
Contributions
Introduction
7. 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
8. 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
9. Turun kauppakorkeakoulu Turku School of Economics
DATA SOURCE
MethdodologyIntroduction Results & Analysis
Discussion &
Contributions
Literature Review | Expert Interviews | Archival Data
10. Turun kauppakorkeakoulu Turku School of Economics
CONCEPTUALISING
POTENTIAL DI
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Nature of Disruptive Innovations
Difficult to label ex-ante It is a relative phenomena.
PotentialDisruptiveInnovation
11. Turun kauppakorkeakoulu Turku School of Economics
CONCEPTUALISING
DISRUPTED DISRUPTION
Introduction
Results & Analysis Discussion &
Contributions
Methodology
PotentialDisruptiveInnovation[PDI]
Disruptive Innovation
[DI]
Disrupted Disruption
[DD]
12. Turun kauppakorkeakoulu Turku School of Economics
DIFFERENTIATING
PDI, DD & DI
Introduction
Results & Analysis Discussion &
Contributions
Methodology
13. Turun kauppakorkeakoulu Turku School of Economics
DIFFERENTIATING
PDI, DD & DI
Introduction
Results & Analysis Discussion &
Contributions
Methodology
DIDifferentiationFramework
14. Turun kauppakorkeakoulu Turku School of Economics
PDI CASE EXAMPLE
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Mobile-DrivenInnovation
15. Turun kauppakorkeakoulu Turku School of Economics
PDI CASE EXAMPLE
Introduction
Results & Analysis Discussion &
Contributions
Methodology
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
16. Turun kauppakorkeakoulu Turku School of Economics
DD CASE EXAMPLE
Introduction
Results & Analysis Discussion &
Contributions
Methodology
Google Docs
Nintendo Wii
Tata Nano
Minicomputers
17. Turun kauppakorkeakoulu Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
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 & Analysis
Discussion &
Contributions
18. Turun kauppakorkeakoulu Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
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 & Analysis
Discussion &
Contributions
19. Turun kauppakorkeakoulu Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
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 & Analysis
Discussion &
Contributions
20. Turun kauppakorkeakoulu Turku School of Economics
DD PROPOSITIONS
Introduction
Discussion &
Contributions
Methodology
Proposition E (Entrants): New ‘entrants' to a market/industry are
more likely to disrupt than incumbents.
Results & Analysis
Discussion &
Contributions
21. Turun kauppakorkeakoulu Turku School of Economics
DIVE MODEL
Introduction
Discussion &
Contributions
Methodology Results & Analysis
Discussion &
Contributions
22. Turun kauppakorkeakoulu Turku School of Economics
CONCEPTUALISING
DISRUPTED DISRUPTION
Introduction
Discussion &
Contributions
Methodology
PotentialDisruptiveInnovation[PDI]
Disruptive Innovation
[DI]
Disrupted Disruption
[DD]
Results & Analysis
Discussion &
Contributions
23. Turun kauppakorkeakoulu Turku School of Economics
Y O U
T H A N K
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Abayomi Baiyere