Christensen differentiates projects on the basis of (1) breakthroughs
(disruptive technologies), (2) platforms, (3) derivatives, and (4)
support (page 369 of his book). Some technology changes (e.g., emergence
of the internet) might be viewed as a disruptive technology. However,
DSL replacing modem access to the internet might be viewed as a new
platform or derivative technology rather than a disruptive technology.
I continue to use Christensen's textbook to teach innovation &
technology. However, it's interesting to note that not all disruptive
technologies ultimately displace market leaders. A good example is
Nucor, which developed SMS's thin-slab technology incrementally, finally
displacing USX as the leading U.S. steel producer in the 1990s. U.S.
Steel continued to upgrade its continuous casting process.
Interestingly, U.S. Steel has now replaced Nucor as the largest U.S.
steel producer. In 2008, U.S. Steel had revenues of $23.8 Billion (ROE =
40.5%) to Nucor's revenues of $23.7 Billion (ROE=28.1%). An interesting
case where market leaders are sometimes able to combat disruptive
technologies, even though it comes slowly and at great cost in terms of
restructuring and employee layoffs.
Hani Sarkis wrote:
> Interesting project. Here is a selected list of disruptive technologies and innovations across industries, causing industry shocks:
>
> - Liquid Crystal Display replacing Cathode Ray Tube
> - Word processor replacing typewriter
> - CDs, DVDs replacing cassette tapes
> - Downloadable digital media replacing CDs, DVDs
> - Integrated chips replacing transistors
> - Semiconductors replacing vacuum tubes
> - High-speed CMOS (Complementary metal–oxide–semiconductor) video sensor replacing photographic film
> - Digital photography replacing film photography
> - Computer printing replacing offset printing
> - Refrigerators replacing ice boxes
> - Desktop publishing replacing traditional publishing
> - Computer printing replacing offset printing
> - Minicomputers replacing mainframes
> - Personal computers replacing minis and workstations
> - Telephony replacing telegraph
> - Packet switching networks (ATM: Asynchronous Transfer Mode, MPLS: Multiprotocol label switching, etc.) replacing circuit switching networks
> - Virtual private networks replacing leased lines
> - VoIP (Voice over Internet Protocol) using skype application replacing incumbent international calls service providers
> - WiMax (Worldwide Interoperability for Microwave Access) Microwave technologies replacing incumbent service providers' infrastructure
> - Mobile telephony replacing paging services
> - Mobile telephony replacing terrestrial fixed line services
> - Routers replacing time and wave division multiplexing
> - High bandwidth fiber optics replacing copper wire
> - DSL (Digital subscriber line) high-speed Internet access replacing modems
> - Private jet replacing supersonic transport
> - Electronic organ replacing acoustic organ
> - Digital synthesizers replacing electronic organs
> - Calculators replacing slide rules
> - Open source operating system replacing proprietary operating systems
> - Open source applications software replacing proprietary applications software
> - Open source databases replacing commercial databases
> - Amazon web services replacing bookstores
> - Online social networks replacing online messaging services
>
>
>
> H. Sarkis
>
> _________________________
> Hani Sarkis
> Ph.D. ABD (Strategy and technology & innovation management)
> Joint Ph.D. Program in Montreal: McGill-HEC Montreal-Concordia-UQAM
> Lecturer - Strategy and International Business
> University of Quebec in Montreal (UQAM)
> School of Business Administration (ESG)
> Department of Strategy and CSR
> 315 Rue Sainte Catherine Est., R-3555
> Montreal H2X 3X2 (Quebec) Canada
> Office R-5310
>
sarkis.hani@courrier.uqam.ca
>
sarkis.hani@uqam.ca
>
> ----- Message d'origine -----
> De: Mike Barnett <
michael.barnett@SBS.OX.AC.UK>
> Date: Vendredi, Janvier 22, 2010 12:22 pm
> Objet: Industry shocks
>
>
>> Dear Fellow Strategists:
>>
>> I'm trying to develop a project, and I wonder if you might be able
>> to lend a hand by offering some specific examples of competence-
>> destroying shocks that have hit various industries, leading to the
>> death, crippling, or at least massive transformation of the
>> industry. I have some ideas about variables that might affect firm
>> survivability in the face of such shocks, and I want to test the
>> ideas across a broad swath of industries.
>>
>> A few caveats on what is workable: 1) The shock ideally would be
>> fairly sudden, not one that was years in the making perhaps due to
>> gradual technological change or changing consumer tastes. However,
>> I might be able to account for the timing in the model, so this is
>> not a deal breaker. 2) The industry would hopefully be one that
>> has a fair number of public companies (else, the ever-troublesome
>> problem of no access to data). 3) For similar reasons, the shock
>> would be in recent history (as in, since Compustat). 4) The shock
>> should be something that cuts to the core of the industry (however
>> defined), rather than one that applies heterogeneously to firms
>> across the industry (granted, I can narrow the industry definition,
>> so long as it applies to a broad swath of firms).
>>
>> Any help much appreciated!
>>
>> Best,
>> Mike
>>
>> ************************
>> Michael L. Barnett
>> Professor of Strategy, Said Business School, U. of Oxford
>> Research Director, Oxford U. Centre for Corporate Reputation
>> Fellow, St. Anne's College, University of Oxford
>>
http://www.sbs.ox.ac.uk/research/people/Pages/MikeBarnett.aspx
>>
>> View my research on my SSRN Author page:
>>
http://ssrn.com/author=414796
>>
>>
>>
--
Jeffrey A. Krug
Associate Professor of Strategic Management
Virginia Commonwealth University
School of Business
301 West Main Street
Richmond, Virginia 23284
Phone: (804) 828-8410
Webpage: www.jeffreykrug.com