Page 98 - (DK) The Business Book

96 96 CHANGING THE GAME

Disruptive innovation refers to
an innovation that transforms the
market. When an existing product Overperformance of existing
boasts more features or services product creates a gap for a
than customers require, it may new, “disruptive” product
become too complex or difficult
to use. As the gap between the
existing product’s performance Point of overperformance
and customer requirement grows,
it creates a gap in the market
that can be exploited by a new,
“disruptive” product. Over time, the PERFORMANCE
new product can redefine the market.

Performance demand of
mainstream consumers
Mean performance
demand
Existing company/
product
New “disruptive”
company/product TIME

Godalming, England). More recent industry, the music industry, the unlikely to have shifted the market
game-changing products in cell-phone industry, and the tablet- very far—true game changers raise
lighting, energy, transportation, computer industry. eyebrows and prompt questions.
and healthcare have ensured that Apple’s iMac, with its focus
the Siemens name is associated on user-friendly design and Interfacing technologies
with quality and innovation. software, made a significant The iPod was a cross between the
Leaders like the company’s impact on the personal computer early crop of low-storage MP3
founder, Werner von Siemens— industry. However, Apple’s first players and the large, hard-drive-
those with the vision and courage major game changer was the iPod, based players that provided several
to pursue game-changing first introduced in 2001. The gigabytes of storage. Amid a sea of
strategies—are, however, all too product was met with scepticism— bland competing products, the iPod
rare. It takes great courage to break but this, according to Christensen, stood out thanks to its stylish and
from tradition; and charisma and is a classic reaction to a game distinctive design. It was small, easy
conviction to lead individuals, changer. A product that is accepted to use, and came with the promise
organizations, and entire industries at first glance as a “winner” is of “1,000 songs in your pocket.”
away from the status quo. Success The real disrupter, however, was
is met with reward and celebration; the combined power of the iPod
failure with ridicule and scorn. and its software interface, iTunes.
For would-be game changers, the Customers could now access a
line between fame and infamy is huge amount of music from one
often thin. place, buy it, download it, and
You cannot lead
“sync” music from their computer
from the crowd.
Rewriting the rules Margaret Thatcher to their devices with ease. The
Another company that has changed iPod could also be charged while
UK former Prime Minister (1925–2013)
the game in its favor, on several syncing. The fact that we now
occasions, is Apple. Under the take such features for granted
guidance of its co-founder and demonstrates the extent to which
CEO, Steve Jobs, the organization Apple transformed the market
disrupted the desktop computer for personal-music devices.