Disruptive Innovations Always Look Like Toys

One of the most misunderstood terms in the business world is disruptive technology. Too many companies -- and the marketers in charge of bringing these companies' innovations to market -- assume that "disruptive" connotes a highly-sophisticated, high-end product with cutting-edge technology that will appeal to early adopters. Actually, however, Harvard's Clayton Christensen argued the opposite in his groundbreaking book on business innovation, The Innovator's Dilemma. As Christensen pointed out again and again, disruptive technologies were exactly those that did not appeal to entrenched market leaders because they tended to under-perform existing technologies and served a less-profitable consumer demographic.

In other words, as Chris Dixon points out in a particularly concise and accurate review of Clayton Christensen's concept of disruptive innovation, disruptive technologies initially are viewed as "toys" in the minds of the entrenched market leaders:

"The reason big new things sneak by incumbents is that the next big thing always starts out being dismissed as a “toy.”  This is one of the main insights of Clay Christensen’s “disruptive technology” theory. This theory starts with the observation that technologies tend to get better at a faster rate than users’ needs increase. From this simple insight follows all kinds of interesting conclusions about how markets and products change over time.

Disruptive technologies are dismissed as toys because when they are first launched they “undershoot” user needs. The first telephone could only carry voices a mile or two. The leading telco of the time, Western Union, passed on acquiring the phone because they didn’t see how it could possibly be useful to businesses and railroads – their primary customers. What they failed to anticipate was how rapidly telephone technology and infrastructure would improve (technology adoption is usually non-linear due to so-called complementary network effects). The same was true of how mainframe companies viewed the PC (microcomputer), and how modern telecom companies viewed Skype."

Which is why, of course, so many American business icons go from great to good to also-rans. These companies continually subject new technologies and products to rigorous filters for profitability and performance. When disruptive technologies fail to deliver (at first), these market leaders are forced to shunt them aside in favor of "what works." Kodak's failure to embrace digital camera technology or newspapers' early dismissal of blogging platforms are two examples of a "toy story" that come to mind.

[image: Toy Story via ScionDriver on Flickr]

Comments

[Eric D. Brown]

Great article...very true too.

Think about the iPod. While many people saw the potential in the technology, it was originally seen as a 'music device' (read toy) but after a while people starting seeing how important this toy was.

Now...we have the iPod and iPhone as part of every day life and they are being used as business systems today.

[buy viagra]

My county and some other towns surrounding my county got some bad flooding. The toy time by my area was totally destroyed. All the toys that they had saved up for the kids were destroyed. I have a bunch of old toys that I was going to get rid of anywho and I wondered if I should give them to toy time? Would it be better if I gave them to toy time or the salvation army? and do they take other toys besides stuffed animals? Like do they take barbies and stuff and do you have to wash everything before you give it to toy time? Thanx!!!!
♥Jes♥

[generic cialis]

Yesterday I was doing research related to this topic. Although navigate through numerous web sites I found no information as complete as that shown in this blog. Your blog is really interesting so I want to thank and also congratulate the great work. thanks again.

[kamagra]

Charles Darwin was a very important man in the history of science.

[cialis]

I try and grow several new plants every year. It's my job to see how things do in different environments, but I'd grow a variety of plants, even if it wasn't. I'm always curious to see if plants will turn out like their magazine shots. When they do, I'm delighted. When they don't, I have to wonder if it was them or me.

[Propecia online]

If there's a person or race in the saga theres a team for it.And It just means thats your favorite character/group of characters. Your for what their doing, Like, Non-Twihards, or Bella Haters would be on Team Victoria...because Good ole' Vicky wants to off Bella, see? I've heard of people who were on Team Tyler's Van, cause they should have let the thing crush her and end it there.
Not me...I'm Switzerland, although I am a dog lover, If ya catch my drift ;)

[cheapest viagra]

I have a bunch of old toys that I was going to get rid of anywho and I wondered if I should give them to toy time?

[generic viagra]

This one innovation very positive for company.

[Nursing PJs]

love the photo! hahaha i just watch the movie yesterday! and it was awesome! love to watch movies especially this kinds of movies! yay! :D

[online viagra]

Good information about disruptive technology. I like it very much
Thanks for sharing this important massage. I would like to read few more post from you.

.....Alex

[Saleenadavid]

You are so generous! I just love finding beautiful and artistic freebies like this. They really brighten up my day, thank you!

[Generic Viagra]

Hey, when I read this I thought about Wii, it began like a entertainment toy but now is such a good product for do exercises with WiiFit.

[certified nursing assistant]

Excellent news, I look forward to more of the HTML5 form stuff and especially its incorporation into JavaScript UI libraries. Except... how will web developers eat if they

can't charge for "Enter search term here" form enhancements ;-)

[cheap navel rings]

Excellent news, I look forward to more of the HTML5 form stuff and especially its incorporation into JavaScript UI libraries. Except... how will web developers eat if they

can't charge for "Enter search term here" form enhancements ;-)

[louis]

I honestly cannot pinpoint what exactly it is, We have already made our first trips to Dairy Queen for mint oreo blizzards! Love it!

[Monogram Multicolor]

I think its a pretty good idea not that there aren't other sites out there that already do something similar but I think it might catch on here pretty well.

[Free Power of Attorney Form]

exactly, i guess it is more expensive than of paying gas but on the other hand it is environmental vehicle. so i guess people

should just think on which is better. :D

[Bank teller resume]

I want to express my admiration of your writing skill and ability to make reader to read the while thing to the end. I would like to read more of your blogs and to share my thoughts with you. I will be your frequent visitor, that’s for sure.

[viagra online]

Health is the best treasure (which) a man can possess. Money can do many things, but it cannot buy happiness. However, so long as man has good health, he can enjoy the pleasures of human life. Thank you so much for this tutorial! Red velvet is my husband's favorite, so he LOVED the heart surprise in the middle when he cut into his birthday cake last week :)

[holy land tours]

Well - like the cellular phone! You may think it is used for calls and chats, but no! you may se one day a mountain climber in some travel using it as a flashlight or even a climb stick :)

[Winstrol]

Any technology can be both disruptive and constructive

[invitations for kids party]

Wow, great mind!

[Filipina Dating]

We can’t not blame the modern technology for today because in every decades there is a different kind of famous thing like for today there is a 3d or iPod unlike before there is a gaming watch, atary etc.

[buy jeans]

Disruptive technologies are dismissed as toys because when they are first launched they “undershoot” user needs.

[viagra pills]

But now a days it is trend to make a funny logos and images thanks a lot for sharing your openion...

Smith Alan
http://www.raymeds.com/blog