Skype

doi:10.1016/j.emj.2006.03.007

European Management Journal Vol. 24, Nos. 2–3, pp. 174–188, 2006 Ó 2006 Elsevier Ltd. All rights reserved. 0263-2373 $32.00

Fusion of Disruptive Technologies: Lessons from the Skype Case

BHARAT RAO, Polytechnic University, New York BOJAN ANGELOV, Polytechnic University, New York ODED NOV, Polytechnic University, New York

In this paper, we study the effects of integration of one or more disruptive innovations and ask if the resultant (new) innovation can have a dramatic impact on new and existing markets, and the resultant technology paradigm. We describe the evolution and dynamics of this process using Skype as a case in point. Skype successfully fused peerto-peer computing (P2P) techniques and voiceover-Internet-protocol (VoIP) to create a new standard and operating model. We discuss whether such integration of disruptive technologies may lead to a ‘‘marriage of equals’’ or whether it leads to dominance by a single technology – and if so, in what circumstances. Ó 2006 Elsevier Ltd. All rights reserved. Keywords: Disruptive innovation, Fusion, Integration, Skype, VoIP, P2P, Standards, Peer-to-peer, Telephony, Communications Skype, a European-based startup, had launched a host of services by fusing VoIP (voice over internet protocol) and P2P (peer-to-peer) computing. It sought to offer a challenging alternative to existing voice communication solutions. While each of these technologies (VoIP and P2P) was inherently new and potentially disruptive, a unique combination of the two as offered by Skype promised to radically change the telecommunications landscape. Using the disruptive innovation literature as a theoretical background, we develop a framework that examines the potential impact of a merger of multiple disruptive technologies.

Background

Over the past decade, the telecommunications industry has witnessed rapid changes in the way people and organizations communicate. Many of these changes sprang from the explosive...