3Industry Undershot Up-market sustaining innovation. Nonconsumers New-market disruptive innovationOvershotLow end-disruptive innovationModular displacementMarket contextLow end, new market, new contextSource: Christensen, C., Anthony, S., and Roth, E. “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change.” Harvard Business School Press, 2006, p.2.Industry
4New market Existing market Source: Christensen, C., Anthony, S., and Roth, E. “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change.” Harvard Business School Press, 2006, p.3.
5New marketChangeSimpleIncrease accessIncrease abilityReduce financial barrierReduce skill barrierEasilyEffectivelyHowConvenienceCustomizationLower priceSignalsGrowth rateSpecific segments (college students!)Link out of the chainRELATIVE low priceSustainingMake good products betterIncrementalMore radicalPerformanceReliabilityFunctionalityConsumer frustrationNegative reviewsWillingness to pay higher pricesProsperity of niche integratorsSpecialists struggleIntegrationNeed it for radicalCompatibilityInteroperabilityLegacyOvershotDecreasing prices over time (refusal to pay for more)Features not usedComplaints about things – ‘complicated’Not all are overshotEase of useFlexible and convenienceCustomizabilityPriceIndustry changeLow-end disruptions (convenience/price)Specialists displace integrated players (at point of modularity)Modularity interfaceSpecifyMeasureUnderstoodPredictStandardsAcceptedHiring does not emphasize deep knowledgeContinuum of low-end to new marketValue chainLow prices