3. disruptive technology
[dis-ruhp-tiv tek-nol-uh-jee] n.
Introduction to a set of very different package of
attributes from the ones mainstream customers
historically value, and they are often perform far
worse along one or two dimensions that are
particularly important to those customers (Bower &
Christensen, 1995, p. 45).
4. disruptive technology
radically performs
different worse
from what in what
mainstream mainstream
customers customers
want want
11. Characteristic #6
Performance attributes that
existing customers do value
improve at such a rapid rate
that the new technology
can later invade those
established markets
16. Characteristic #1
Simpler, cheaper, lower performance
o Shortened product cycle time.
30% faster than its competitors
x Federal tax incentive + potential savings on gas
o 2004 Prius
100 miles/hr
0 to 60mph in 12s
Competitors do 0-60mph in 10s
25. Characteristic #6
Performance attributes that
existing customers do value
improve at such a rapid rate
that the new technology
can later invade those
established markets
26. Characteristic #6
Performance attributes that existing customers do value improve
at such a rapid rate that the new technology can later invade
those established markets
28. Characteristic #7
Any market research on the
technology is likely to be incorrect
No clue about the market
Tendency to focus on the mainstream
market
Hitting wrong target
38. Trained technicians
Warranty
3 years of standard coverage
+ 8 years of hybrid-related component coverage
Quality assurance
Liberty to stop production as necessary
39. Do you agree with Toyota’s
commercialization
approach?
Q2
43. Bibliography
Boberg, E. (2004). Common Sense Not Required. Retrieved September 7, 2010, from http://
www.angelfire.com/mech/evbo/prius.html
Christensen, C. M. (2000). The Innovator's Dilemma. Harvard Business School Press.
Danneels, E. (2004). Disruptive Technology Reconsidered: A Critique and Research Agenda. The Journal of
Product Innovation Management, 246-258.
LaMonica, M. (2008, May 20). Electric cars: iPhones of the auto industry? Retrieved September 7, 2010, from
CNet News: http://news.cnet.com/8301-11128_3-9945899-54.html
Masaru Yarime, H. S. (2008). The strategies of the Japanese auto industry in developing hybrid and fuel-cell
vehicles. Making choices about hydrogen: Transport issues for developing countries, pp. 193-217.
O'Donnell, P. (2010, January 14). A surge in electric cars. Retrieved September 7, 2010, from
EuropeanVoice.com: http://www.europeanvoice.com/article/imported/a-surge-in-electric-cars/66868.aspx
Pollack, A. (2000, November 19). BEHIND THE WHEEL/Toyota Prius; It's Easier to Be Green. Retrieved
September 7, 2010, from New York Times: http://www.nytimes.com/2000/11/19/automobiles/behind-the-
wheel-toyota-prius-it-s-easier-to-be-green.html
Wright Investors' Services. (2008). A Wright Investors' Service Research Report: Toyota Motor
Corporation. CT: Wright Investors' Services.