To: chaz who wrote (2387 ) 6/1/1999 11:11:00 PM From: Ausdauer Read Replies (3) | Respond to
Discontinuous Innovation: The Fossilization of Kodak, Fuji and Agfa? This is CHAPTER TWO of my presentation of flash memory and digital photography as is relates to SanDisk's potential to become an important industry player in the field of removable memory for portable consumer electronics. The content of my discussion will follow the table below. I am also including links back to prior chapters so as to facilitate participation by thread members who may have missed earlier portions of this investment case. Table of Contents Message 9880779 CHAPTER ONE Tornado Watch: The Unrealized Potential of Flash Memory in Digital Photography and Portable Consumer Electronics Message 9878229 CHAPTER TWO Discontinuous Innovation: The Fossilization of Kodak, Fuji and Agfa? discontinuous innovation is quite simple. It is purely a technologic breakthrough that creates a novel product, process or service which has the potential to displace an existing technology. As users embrace this new technology they "put in place new infrastructures that were incompatible with what was prevalent at the time".value chain needs to be created whereby consumers can enjoy the innovation to its fullest extent.Who wants a car with no highways, a VCR without movies to rent, a microwave with no microwavable meals or recipes, a new game machine with no new games? Technology Adoption Life Cycle .early market, chasm, bowling alley, tornado,... ) on top of the Technology Adoption Life Cycle. Technology enthusiasts and independent developers are charged with keeping abreast of developments which could potentially revolutionize their industry niche. Visionaries , typically "highly placed executives" then try to leverage these advances to gain an edge on competitors in their respective industry. This is perhaps the first meaningful endorsement of a discontinuous innovation as visionaries hope to gain a significant lead over competitors who may not be aware of the utility and potential of such discoveries. Unfortunately, such endorsements do not necessarily predict or guarantee eventual success.Three Important Departures an new industry standard focused directly on a consumer market , will recurr at several points in my discussion of this innovation.leap-frogging by competitors (other 35mm film manufacturers) and to avoid extinction by the technology itself . As a result, a defacto standard was created.Please note that in claiming this, I have intentionally overstated the impact of digital photography and flash memory solutions on the standard 35mm film market. This is because many photography enthusiasts will continue to use both technologies for the foreseeable future. An analogous situation exists for those of use who own both a microwave oven and a conventional oven/stove. The microwave itself was not so discontinuous as to eliminate the antecedent technology entirely. hurdled over the chasm bounding directly from a gestational phase (the early market) and into the mainstream market . bowling alley stage has been rendered imperceptible as well. In fact, one may question at this point whether digital photography alone is the driving force. It almost certainly is. But on its coattails rides flash memory all but concealed for view.
