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 corporations 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
2006present 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: 19962011 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 1995present 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 2007present 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 UAVs 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. Dont 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. Dont 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?