1. Disruptive Innovation Roy Glen

2. Resource Partitioning Price Features

3. Christensen’s contribution Why do great companies fail ? Rejects conventional wisdom –Stupidity of leaders –Inability to innovate –Tired blood

4. Christensen’s Conclusion Great companies fail because they practice effective management –Align with mainstream customers –Invest for growth and profit improvement –Stay focused

5. What happens ? When a product fails to meet the minimum requirements of the mainstream marketplace ? When the leading products overshoot what mainstream customers want ? Where does overshooting occur first ?

6. Disruptive Technologies: A Driver of Leadership Failure Performance Time Performance trajectory of present technology Trajectory of consumer needs

7. Disruptive Technologies: A Driver of Leadership Failure Performance Time Performance trajectory of present technology New Performance trajectory

8. Minimill Steel Quality Invasion of Disruptive Steel Minimill Technology Steel Quality 1975198019851990 Rebar Other bars and rods Structural Steel Sheet steel

9. Christensen’s Explanation All firms develop dynamic inertia Large firms more than small Successful firms more so than less successful Inertia maintained by Performance expectations built into the stock price Routines for product screening Routines for resource allocation Capabilities and values

10. Discussion Identify three sustaining innovations and explain why you define them that way? Identify three disruptive innovations and explain why you define them that way?