1. Disruptive Technologies: Threat or Opportunity? Digital photography (Kodak saw threat to its core photography business) RR Donnelly saw “books on demand”as impacting its existing printing business

2. Should Disruptive Technology Be Viewed As a Threat and an Opportunity? Threats may fixate managers on protecting the existing business model Opportunities may be understaffed, underfunded, and unmotivated

3. Managing the Motivations of Threat and Opportunity Business Model Creation ThreatOpportunity Initial Resource Allocation Opportunity Threat new business model staged commitment existing business model no commitment new business model no commitment existing business model aggressive commitment

4. Managing Disruptive Innovations Keep unit as independent as possible so that disruptive innovation will be framed as an opportunity Eliminate direct reporting and physical proximity to senior managers Fund in stages - Use Teradyne as a guide Don’t staff new venture with employees from core business Start out as independent, and let integration opportunities develop naturally