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Exploring the Limits of the Technology SCurve

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Critical Analysis. 2. Process, ... S-Curve is based on Fosters work. 5 ... Critical advantage to industries first in adopting new architectural technologies ... – PowerPoint PPT presentation

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Title: Exploring the Limits of the Technology SCurve


1
Exploring the Limits of the Technology S-Curve
  • Clayton M. Christensen

2
What are We Going to Tell You?
  • Technology and Change
  • S Curves as a Strategy Tool
  • Component Innovation
  • Architecture Innovation
  • Article Points
  • Article Summary
  • Critical Analysis

3
Technology
  • Process, technique, or methodology
  • Embodied in a product design or
    manufacturing/service
  • Transforms inputs of labor, capital, information,
    material, and energy into outputs of greater
    value

4
Technology Change
  • A change in inputs, processes, techniques, or
    methodologies
  • Improves the measured levels of performance of a
    product or process

5
Technology Growth Phenomena
  • The S curve pattern
  • The S curve Phenomena is interesting in that it
    does not decay
  • Limited in its ultimate performance by chemical
    and physical laws
  • S-Curve is based on Fosters work

6
Clayton Christensens Articles
  • First one Covered S-curve relation to component
    technology developments
  • Little to no advantage to industries first in
    adopting new component technologies
  • This article Covered S-curve relation to
    architectural technology developments
  • Critical advantage to industries first in
    adopting new architectural technologies

7
Component Vs Architectural
  • Component change
  • The incremental change of an individual part of a
    system. Often change is pushed or ridden out on
    the s-curve by going beyond perceived physical
    limits.
  • Architectural change
  • Rearrangement of the way components relate to
    each other within a products system design.

8
Christensons 4 Propositions
  • They can help explain why alternative
    technologies succeed or fail
  • Aid in component and architectural technology
    development
  • Firm versus industry
  • Incumbents vs. Attackers
  • Incumbent firms _ component - Follow S Curve
  • Attackers - architectural change Follow S Curve
    part 2

9
Wheres the Advantage?
  • Early adopting firms held a competitive advantage
    over incumbent firms when applying them to new
    markets.
  • New architecture initially lagged behind
    incumbent firms new component in the established
    market demands
  • The new architecture met the needs of the new
    market demands (different application)
  • The new architecture (once developed) quickly
    overtook the incumbent firms component advantage
    in the established market.

10
Architectural Substitution Process?
Source Christensen, C.M. et. all. (1992).
Production and Operations Management Society.
11
Market Application Matters in Architectural
Innovation
Source Christensen, C.M. et. all. (1992).
Production and Operations Management Society.
12
Common Misconceptions S-Curve Explanation
  • S Curves as a product versus technology effort
  • S-Curves are a phenomenon showing the typical
    path of product performance in relation to
    investment in RD.
  • Important to understand that this is
    technological advances versus product advances
  • Some authors have a difficult time

13
Whats There not to like?
14
What did we Tell You About?
  • Technology and Change
  • Component Innovation
  • Architecture Innovation
  • S Curves as a Strategy Tool
  • Common Miwsconceptions
  • Did I like it
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