disruptive innovation

DISRUPTIVE INNOVATION

DEUPhD Program

Maritime Business Administration

Managing Change and Innovation in Shipping

Fevzi BİTİKTAŞ Resul TEPE

Lect. Asst. Prof. Dr. Çimen KARATAŞ ÇETİN

2015, Oct. İzmir

What disruptive innovation means?

Coined by Clayton Christensen

Published in 1997

Defined as “create new markets”

Clayton Christensen describes as; “a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.”

Sustaining- comes from listening to the

needs of customers in the existing market and creating products that satisfy their predicted needs for the future.

- evolutionary and revolutionary change.

Disruptive

- An innovation that creates a new market by applying a different set of values, which ultimately (and unexpectedly) overtakes an existing market (e.g., the lower-priced Ford Model T )

The Internet was disruptive because it was not an iteration of a previous technology, while theLaptop computer is not considered disruptive because it was an improvement on an existing technology.

Timeline of evolution of Disruptive Innovation Theory

The Disruptive Innovation Model

Catalytic Innovation• the subcategory of disruptive innovations• primary focus on social change• main objective is to achieve sustainable,

scalable social change• can surpass the status quo by providing good

enough solutions to inadequately addressed social problems.

Catalytic innovators share five qualities;

1. create systemic social change through scaling and replication.2. meet a need that is either overserved or not served at all.3. offer products and services that are simpler and less costly than existing alternatives and may be perceived as having a lower level of performance, but users consider them to be good enough.

Catalytic innovators share five qualities (cont.);

4. generate resources, such as donations, grants, volunteer manpower, or intellectual capital, in ways that are initially unattractive to incumbent competitors.5. They are often ignored, disparaged, or even encouraged by existing players for whom the business model is unprofitable or otherwise unattractive and who therefore avoid or retreat from the market segment.

Traditional encyclopedias

Britannica ended print production after 244 years in 2012

Wikipedia

Found by Jimmy Wales, 2001

Disruptive Innovation Disrupted by

Introduced in 1969, 8-inch, 80 KB

Compact Disk, invented by Philips and Sony in 1979

Portable USB, invented in 1998

Cloud Storage

What are great disruption in our near future?

Internet of Thingsembedded with electronics, software, sensors, and network connectivity

collect / exchange data and remotely control

Integrate: physical world and computer-based systems

50billion objects by 2020

Advanced robotics

take the place of humans

surgical systems,

robotic prosthesis and to restore fuction of amputees or the elderly

Autonomous or Near-Autonomous Vehicles

Google Unmanned Car Drone- have sensors to detect objects as far

as two football fields away in all direction

- test self-drive completed over 1million miles

associated with the military but nowused for multi purpose such as search and rescue,monitoring somethings..etc

Amazon’s Prime Air

futuristic delivery system

30 minute delivery (about 40 km distance), the order must be less than 2.3 kg

commercial use of Drone technology is not yet legal in many countries.

3D Printingseem as 3th industrial revolution

layers of material are formed under computer control to create an object

will be possible to send a blueprint of any product to any place in the worldto replicate

Thank You