1. “Signals of Change” Christensen
Munir Mandviwalla
Fox School of Business
Temple University

3. Industry Undershot Up-market sustaining innovation. Nonconsumers
New-market disruptive innovation
Overshot
Low end-disruptive innovation
Modular displacement
Market context
Low end, new market, new context
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.2.
Industry

4. New 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.

5. New market
Change
Simple
Increase access
Increase ability
Reduce financial barrier
Reduce skill barrier
Easily
Effectively
How
Convenience
Customization
Lower price
Signals
Growth rate
Specific segments (college students!)
Link out of the chain
RELATIVE low price
Sustaining
Make good products better
Incremental
More radical
Performance
Reliability
Functionality
Consumer frustration
Negative reviews
Willingness to pay higher prices
Prosperity of niche integrators
Specialists struggle
Integration
Need it for radical
Compatibility
Interoperability
Legacy
Overshot
Decreasing prices over time (refusal to pay for more)
Features not used
Complaints about things – ‘complicated’
Not all are overshot
Ease of use
Flexible and convenience
Customizability
Price
Industry change
Low-end disruptions (convenience/price)
Specialists displace integrated players (at point of modularity)
Modularity interface
Specify
Measure
Understood
Predict
Standards
Accepted
Hiring does not emphasize deep knowledge
Continuum of low-end to new market
Value chain
Low prices