Sustaining vs Distruptive

Sustaining Vs Disruptive Technologies

Angappan N Ponni

The book outlines various case studies of where good management and skills that was once set as a benchmark could still lead some companies to fail. The failure framework is built on three finds from this study: They are

➢ Sustaining technologies Vs disruptive technologies

➢ Pace of Technology

➢ Customers and financial structures of successful companies color heavily the sorts of investments that appear to be attractive to them relative to certain type of entering firms.

Sustaining Technologies:

Sustaining technologies equal increased and improvised product performance. Instances improved features of cordless phone technology like answering machines, 3 way calling and caller id . Some of them can be discontinued or radical while others are incremental in nature. Most technological advances in a given industry are sustaining in character. The sustained technologies always meet and excel the market demand. Some of the examples are Apple iphone Vs all imitators like LG, etc. It’s very rare, leading firms with sustained technologies lead to firm’s failure. Sustained technologies have lucid measures to analyze all the resources in the firm. They don’t relate their firm size to equate with the targeted markets

Case :

▪ Google Vs Yahoo. (Google was looking to compete with yahoo even though yahoo was already a leader in search engine.)

DISRUPTIVE TECHNOLOGIES :

Technologies that result in worse product performance in a short term. It can lead to leading firms failure. Disruptive technologies bring to a market a very different value proposition than had been available previously. They under perform established products in mainstream market. But they have other features that add customer value. They are cheaper, simpler smaller, and frequently more convenient to use. They generally promise low margins not greater profits.

Normally...