If knowledgeable technologists believe a new technology might progress faster than the market s demand for performance improvement, then that technology which does not meet customers needs today, may very well address those needs tomorrow. If so, then the technology is strategically critical. Keep in mind that many of the disruptive technologies studied never surpassed the capability of the old technology. It is the trajectory of the disruptive technology compared with that of the market that is significant. Locating the initial market Traditional market research is seldom helpful because at the point a company needs to make a strategic commitment to a disruptive technology, no concrete market exists.
Disruptive technologies signal the emergence of new markets or market segments.
Large established companies should allow start-up companies to conduct rapid, iterative and inexpensive experimentation with both the product and the market. Small, hungry organizations are good at placing economical bets, rolling with the punches and agilely changing product and market strategies in response to feedback from initial market forays. Placing Responsibility With an Independent Organization Creating a separate organization is necessary only when the disruptive technology has a lower profit margin than the mainstream business and must serve the unique needs of a new set of customers. Once a spin-off is economically successful, folding it into the mainstream organization where fixed cost resources can be shared across all the businesses can work with sustaining technologies. With disruptive technologies this approach can be disastrous.