Abstract
The role of technology in corporate strategy is changing dramatically. Traditional research and development (R&D) is giving way to what is being recognized today as disruptive innovation. Disruptive innovations are changing a fundamental premise of strategic thinking. They do not follow the classic model, entering the market as cheap substitutes for high-end products and then gradually increasing in quality and moving up the customer chain. Instead, the innovation beats incumbents on both price and quality right from the start and quickly sweeps through every customer segment. This kind of “big bang” disruption can devastate entire product lines virtually overnight (The Economist, 2014).
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References
Nunes, P. F. and Downes, L. (2013) ‘Big Bang Disruption’, available at: http://www.accenture.com/us-en/outlook/Pages/outlook-journal-2013-big-bang-disruption-innovators-disaster.aspx (accessed 8 July 2014).
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Sanburn, J. (2013) ‘Can Electronic Cigarettes Challenge Big Tobacco?’, available at: http://business.time.com/2013/01/08/can-electronic-cigarettes-challenge-big-tobacco/(accessed 8 July 2014).
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© 2014 M. S. S. el Namaki
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el Namaki, M.S.S. (2014). Technology and Disruptive Innovations. In: Strategic Thinking for Turbulent Times. Palgrave Macmillan, London. https://doi.org/10.1057/9781137414007_9
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DOI: https://doi.org/10.1057/9781137414007_9
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