Disruptive Innovation

Japan's success in machine tools in 70's: Combination of computer and machines. Computerized tools with much higher precision, less reliable on worker, high quality goods can be produced anywhere. Integration of computer technology in the Western SMRE companies was challenging. Inferior base technology but did put something on top resulting in a superior product.

As technology moves the gap between what's available and what we (the customers) really needs (often lower) is widening. Customers can't absorb it. Some customers are willing to use the disruptive technology sold at a lower price point as long as the minimum performance threshold is met.
Kano model in development (Patrick). http://en.wikipedia.org/wiki/Kano_model
http://www.sipgate.de/


Warnings signs: price becomes key factor, old products good enough, poor products taking market share


Capability oversupply--> is our company launching too many only sligthly-differentiated products. Identify lower demand customer segment especially in emerging countries

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