Ch.7 Takeaway concepts

Industries generally

follow a predictable industry life cycle, with five distinct stages; introduction, growth, shakeout maturity, and decline.

Innovations frequently

lead to the birth of new industries.

This distinct difference between customer groups

leads to a big gulf or chasm, which companies and their innovations frequently fall into

To overcome the chasm,

managers need to formulate a business strategy guided by the who, what, why, and how questions of competition

An incremental innovation

squarely builds on an established knowledge base and steadily improves an existing product and service offering

The core argument of the crossing-the-chasm framework is

that each stage of the industry life cycle is dominated by a different customer group, which responds differently to a new technological innovation

There exists a significant difference between

the customer groups that enter early during the introduction stage and customers that enter later during the growth stage

Innovation describes

the discovery and development of new knowledge in a four step process captured in the four I's: ideas, invention, innovation, and imitation

Entrepreneurship describes

the process by which change agents undertake economic risk to innovate - to create new products, processes, and sometimes new organization

Strategic entrepreneurship describes

the pursuit of innovation using tools and concepts from strategic management

Social entrepreneurship describes

the pursuit of social goals by using entrepreneurship. Social entrepreneurs use a triple-bottom-line approach to assess performance.

An invention describes the

transformation of an idea into a new product or process, or the modification and recombination of existing ones

Four types of innovation emerge

when applying the existing versus new dimensions of technology and markets: incremental, radical, architectural, and disruptive innovations

Innovation concerns the

commercialization of an invention by entrepreneurs

Platforms benefit from

community feedback. Feedback loops from consumers back to the producers allow platforms to fine-tune their offerings and to benefit from big data analytics.

If an innovation is successful in the marketplace,

competitors will attempt to imitate it

A radical innovation is

draws on novel methods or materials, is derived either from an entirely different knowledge base or from a recombination of existing knowledge bases with a new stream of knowledge

Platform businesses scale more efficiently than pipeline businesses by

eliminating gatekeepers and leveraging digital technology. Pipeline businesses rely on gatekeepers to manage the flow of value from end to end of the pipeline. Platform businesses leverage technology to provide real time feedback.

Platforms unlock new sources of value creation and supply.

Thus they escape the limits faced by a pipeline company working within an existing industry based on physical assets.

An architectural innovation is

an embodied new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets

The innovation process begins with

an idea

A disruptive innovation is

an innovation that leverages new technologies to attack existing markets from the bottom up