1. Disruptive Innovations
By Group 3
Presented By
Pushpak Elledu - 3275
Venkata Karthik - 3273
Vivekananda sai - 3576
Prachi Nitin
Priyamvadha
Harsh sharma
Atrey Bhardwaj

2. • It is not just the magnitude
of the advance
• If it works to sustain the
existing business model, it is
not disruptive
• A change in business model
from the existing one to a
new one which is more
efficient and/or better
addresses the demands of
consumers is the key
What Makes An Innovation
Disruptive?

3. Disruptive Technologies
• Bring new value propositions to market
• Underperform established products in mainstream markets
• Have characteristics that appeal to fringe or new customers
• Products are typically cheaper, simpler, smaller, less capable, but
more convenient to use
• “…disruptive technologies that may underperform today, relative to
what users in the market demand, may be fully performance-
competitive in that same market tomorrow.”

4. What is a disruptive technology?
Performance
(log. Scale)
TimeSource: Adapted from Christensen (1993)
Second technology
Third technology
First technology

5. A well researched example: hard disk drives
Source: Christensen, 1993
Intersecting Trajectories of Capacity Demanded versus Capacity Supplied in Rigid Disk Drives

6. Why are incumbents (often) sitting
ducks?
• Economic interest
• Better-off funding incremental supportive innovation
• Organizational logic
• Structural “fit”, interaction routines, collective tacit skills
• Social heritage
• Network embeddedness (customers, suppliers, partners)
• Wrong Value Network
• Context of corporation’s business environment leads to missing
competition arising from outside
• Organizational Structure
• Companies organized by a products substructure fail when
fundamental architecture changes

7. Why are incumbents (often) sitting
ducks?
• Core Competencies
• Firms fail when a technological change destroyed the value of competencies
previously cultivated and succeeded when new technologies enhanced them
• Technology S-curves
• Firms fail when they miss inflection points along their main product thrust
and specifically when they miss technologies advancing in related fields
• Wishful thinking
• The larger and more successful and organization becomes, the weaker the
argument that emerging markets can remain useful engines for growth.

8. The Incumbent's Weak Response
• Late, slow, half-hearted, tentative and ineffective
• On the “wrong” trajectory (accelerate their own, ignore the new)
• Lacking critical mass, under funded, under supported
• Expensive
. Time compression diseconomies
. Lasting stalemate
• Often strategically flawed
. Transfer of “old” value creation system

9. To Challengers, Disruptive Technologies Open A Window Of
Opportunity:
• They are disruptive for incumbents, supportive for challengers
• They mix technical , social and value innovations, making them difficult for
incumbents to emulate …
• They create / open vast new “low-end” markets to use a staging areas...
• They originate and spread below / beyond the radar screen of incumbents
• They draw on distant and diverse sources of knowledge
• They rely on new, or hard to enter, social networks

10. Disruptive Technologies
Established Disruptive Technology
Simulations via Training Classrooms Edutainment: Virtual Reality and Games
Face-to-face collaborative work Online forums/social networking
Face-to-face interaction Social Networking
Programmes of study delivered on
campus/blended learning with few
delivered totally online
Mobile Technology; Open Education
Resources; MOOCs (Massive Online Open
Courses)
Build prototypes 3D Printing

11. Are these companies clueless?
• Not every technology that looks disruptive is feasible.
• You cannot chase every possible disruptive technology to cover all
your bets
• Even technologies which are well-researched and appear to be
potentially disruptive can be very difficult to bring to market
• The Innovator's Dilemma: A company which is in an existing business
and listening to its existing customers feels that there is no need for
anything new.

12. Incumbents that respond successfully
• Widely distributed prospecting for and active sensing of
new knowledge, worldwide, including emerging / latent
market needs
• Cultivating absorptive capacity and knowledge melding
• Sustaining a pluralistic dialogue, internally and externally
• Creatively challenging existing orthodoxies and business
models
• Letting “autonomous” strategic processes flourish, and
select, at various levels, from their outcomes
• Fostering Internal differentiation of organization

13. Anti-Disruptive Technology
J. H. Helms, Ford Research Lab.

14. Lockheed Martin Aeronautics

15. Role Stealth multirole fighter
National origin United States
Manufacturer Lockheed Martin
Aeronautics
Produced 2006–present
Number built 63
Unit cost F-35C: US$199.4M (flyaway
cost, 2013)
Role Stealth air superiority fighter
National origin United States
Manufacturer Lockheed Martin Aeronautics
Boeing Defense, Space & Security
Produced F-22: 1996–2011
Number built 195
Unit cost US$150 million (flyaway cost for
FY2009)
Lockheed Martin F-22 Raptor Lockheed Martin F-35 Lightning II

16. Role Remote piloted aircraft,
UAV/UAS
Manufacturer General Atomics
Aeronautical Systems
Produced 1995–present
Number built 360 (285 RQ-1, 75 MQ-1)
Unit cost US$4.03 million (2010)
General Atomics MQ-1 Predator
Role Unmanned combat air
vehicle
National origin United States
Manufacturer General Atomics
Aeronautical Systems
Produced 2007–present
Number built 57
Unit cost US$16.9 million (2013)
General Atomics MQ-9 Reaper

17. UAS Data Link
• Pilot sits in Ground Control Station
(GCS)
• Can be located anywhere in the
world
• If line of sight exists, data is streamed
directly to GCS from drone
• If line of sight does not exist, a
satellite relay is utilized
• Spacecraft allow a pilot in Nevada
to control drone over Afghanistan
• No human limiting factors.
• In March 2011, the U.S. Air Force was
training more pilots for advanced
unmanned aerial vehicles than for any
other single weapons system.

18. A Part of the Aviation Revolution Unlimited
Applications
• Military/Security
– Defense
– Surveillance
• Civil
– Defense
– Natural Disasters
– Humanitarian Relief
• Science
– Environment
– Weather & Storm
Tracking
• Commercial
– Wireless
Communications
– Precision Agriculture
– Cargo Transport
Dull, Dirty, Dangerous Missions

19. Current Military Uses
• Significant increase in UAV usage by military forces
around the globe.
• Most prevalent role of UAVs in the military:
• Intelligence, surveillance, and reconnaissance (ISR)
• Air Strikes using missiles and bombs
• Over 40 countries currently possess or are
developing UAVs, including:
•The U.S.
•China
•India
•Great Britain
•Israel

20. Potential Benefits
• Cost effectiveness when doing reconnaissance in both small and large
areas.
• Loss of life is minimized.
• Can do reconnaissance without being spotted, due to ability to climb to
such a high altitude.
• Some are equipped with weaponry which can be used to strike down
targets.
• They are equipped with night vision and can see through clouds.
• Have the ability to stream video to anywhere (President, Secretary of
Defense, Generals etc.) .
• They're 1/20th of the weight of a fighter jet so they can fly longer on less
fuel.

21. Figure: UAV Annual Funding Profile (In Million $)
Source: OSD, UAV Roadmap 2002-2027, December 2002, p.20.
Figure 5 breaks out the planned funding for each UAV throughout the Future
Years Defense Plan (FYDP):

22. Figure compares manned to unmanned funding from 2000 to 2010. The chart reveals that UAVs will
make up an increased portion of aircraft funding over the FYDP, growing from 4% in 2000 to 31% in 2010.

23. • UAV have been proven effective on the battlefield and for
commercial/civilian use
• As time goes on, UAV's will become smaller, faster, fly higher and
stream better images.
• They should eventually replace fighter jets, and in doing so they
will save many lives.
• UAVs such as the Predator will one day replace manned fighter
The future of UAV’s depend on the answer to the
question “How Much Is a Human Life Worth?”

24. Is all lost?
If you are an established, successful company, how do you
counter?
• Choose 1 or 2 disruptive technologies that concern you the most and
participate
• Set up separate organization in separate location with constrained
funding
• Alternatively, invest in start-ups
• Manage expectations as markets are found for disruptive
technologies by trial and error

25. What can managers faced with disruptive
technologies do?
• Set up a separate organization small enough to get excited by small
gains.
• Plan for failure. Don’t bet all your resources on being right the first
time. Think of your initial efforts at commercializing a disruptive
technology as learning opportunities. Make revisions as you gather
data.
• Don’t count 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. You will also find that the
attributes that make disruptive technologies unattractive to
mainstream markets are the attributes on which the new markets will
be built.

26. • As we have seen the demand of UAV is increasing and they are expected to
gradually replace the role of fighter Jets in defense field.
• As Lockheed Martin Aeronautics doesn't have drone division the most
optimum solution would be to collaborate with others to get a foothold in
that sector.
• Example: For F-22 Raptor Lockheed Martin Aeronautics is the prime
contractor and is responsible for the majority of the airframe, weapon
systems and final assembly, while Program partner Boeing Defense, Space
& Security provides the wings, aft fuselage, avionics integration, and
training systems.
• A similar approach can be taken to collaborate with General Atomics
Aeronautical Systems to design a new unmanned combat vehicle integrating
the strengths of both companies.
What should Lockheed Martin Aeronautics do in such a situation?