Title: Exploring the Limits of the Technology SCurve
1Exploring the Limits of the Technology S-Curve
2What 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
3Technology
- 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
4Technology Change
- A change in inputs, processes, techniques, or
methodologies - Improves the measured levels of performance of a
product or process
5Technology 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
6Clayton 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
7Component 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.
8Christensons 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
9Wheres 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.
10Architectural Substitution Process?
Source Christensen, C.M. et. all. (1992).
Production and Operations Management Society.
11Market Application Matters in Architectural
Innovation
Source Christensen, C.M. et. all. (1992).
Production and Operations Management Society.
12Common 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
13Whats There not to like?
14What did we Tell You About?
- Technology and Change
- Component Innovation
- Architecture Innovation
- S Curves as a Strategy Tool
- Common Miwsconceptions
- Did I like it