Papers - Cozzolino - Unpacking the Disruption Process; New Technology, Business Models, and Incumbent Adaptation
13 important questions on Papers - Cozzolino - Unpacking the Disruption Process; New Technology, Business Models, and Incumbent Adaptation
Why are incumbents (zittende partijen) reluctant do adapt to change when disruption is apparent?
- Resource dependence upon mainstream customers
- Rigidity of existing routines and competences
- Demand uncertainty
- Institutional tension
- Economic reliance on established value networks
What is, according to Cozzolino et al., the definition of disruptive innovations?
When taking into account the definition of Disruptive Innovation (Cozzolino), what is then the definition of Disruptive Business Models?
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Why is BMA complex and challenging, provide an example?
Why was the internet a 'disruptive technology'?
Prior: Increase print quality (color, speed automation)
Now: Redefined meaning of performance by; by-directionality, real time wide access, audio visual forms of sharing information freely.
Initially appealing to customer niche, over time took over the whole industry.
Explain the process model of BMA, provide by Cozzolino etal
Phase 1: Stand Alone Experimentation
Phase 2: Governance mechanism of cooperation and acquisitions
What is the main driver of phase 1 of the BMA process?
Incumbents are more likely to experiment in isolations.
Tensions rise from when combining internal and external knowledge and the closed vs open logics.
Failure and learning lead to change in mechanisms and phase 2 of the BMA process
What is the main driver of Phase 2 of the BMA process?
What is 'external economies of scale' and how does it differ from internal?
Internal economies of scale comes from a firms specific production process (ford assembly line)
What are the reasons for the recursive and non-linear nature of BMA?
- Initial failure to adapt
- There is still value in the old model
- New changes in market conditions (e.g. Setbacks in the external new market)
What are two conditions that might help to succesfully introduce disruptive models through stand-alone experimentation, according to findings in the Cozzolino Paper?
- Relatedness to core business (must be unrelated to those of traditional core business, to limit conflicts (eg open vs closed model conflicts)
- Degree of time advancement
What are the two reasons why experimentation is an important mechanism of adaptation in Phase 1?
- Opportunity perception, when actors perceive an opportunity they tend to react creatively and are more likely to take risks
- In the 'Fluid Stage' of technology innovation, product innovation tends to be high
Why would companies open their business model, according to Cozzolino et al?
- Reduce costs
- Create new businesses and innovations
- Increase size (grow their market)
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