1. The Innovator‘s Dilemma Clayton M. Christensen Meeting the Challenge of Disruptive Change Clayton M. Christensen Michael Overdorf

2. Where capabilities reside Three factors that affect what organizations can and cannot do: 1)Resources -tangible resources -intangible resources 2)Processes -patterns of interaction, coordination, communication and decision making -formal processes -informal processes 3)Values -standards for setting priorities to judge an opportunity

3. Performance trajectory of present technology driven by sustaining technological improvements New Performance trajectory Performance that customers can absorb or utilize Time Performance Disruptive Technology The Disruptive Technologies Model 1)Performance that customers can absorb or utilize over time 2) Improvement trajectory 3) Sustaining vs. Disruptive

4. Sustaining vs. Disruptive technology Sustaining technologies are defined as … „ … those technologies that make much better products for the best customers that could be sold for higher margins.“ Sustaining technologies are defined as … „ … those technologies that make much better products for the best customers that could be sold for higher margins.“ Disruptive technologies are defined as … „ … those technologies that bring to the market something that is worse, not better, in terms of performance valued by the mainstream of customers, and therefore could not be used by customers in the mainstream.“ Disruptive technologies are defined as … „ … those technologies that bring to the market something that is worse, not better, in terms of performance valued by the mainstream of customers, and therefore could not be used by customers in the mainstream.“

5. Three ways to cope with change/disruptive innovations: 1)Create new organizational structures within corporate boundaries 1)Spin out an independent organization from the existing one 1)Acquire a different organization whose processes and values match the new requirements of the new situation