1) According to Harvard professor Clayton Christensen, outstanding companies can do everything right and still lose their market leadership. 2) Technological innovation is accelerating due to globalization and competition, but consumers are struggling to adopt new technologies at the same pace due to preferring to stay within their comfort zone. 3) We have entered an "application age" where the real meaning of innovation is in how technologies are used in daily life, rather than just their capabilities. Focusing only on what is technologically possible without considering actual adoption can widen the gap between innovation and social use.

1. Disruptive Innovation based on theory by Clayton Christensen 27 augustus 2008 Future Studies

2. Synopsis: “ Outstanding companies can do everything right and still loose their market-leadership”, states Harvard professor Clayton Christensen. Companies face a tough dilemma; Should you listen to your best customers or the non-customers? In this rapport we pose the question; When to invest in lower-performance products?

6. According to Harvard professor Clayton Christensen outstanding Companies can do everything right and still loose their market-leaderhip

7. How can this be?

8. Last year a new product was launched every 3.5 minutes. This means that by the time you've reached the end of this presentation 5 new products have been launched!

9. The speed of this innovation is fueled by globalization and increased competition

10. Moore’s law states that information technologies double their power each and every year, creating exponential growth.

11. Head of IT at CERN, Francois Grey explains…

13. Technological innovation has become a major driver of progress

14. And while innovation is speeding up and companies are competing for better and better products the consumer is lacking behind in his adoption of those new technologies

15. Lecturer at Cranfield University Stephen Carver…

18. Why is it that the needs of society don’t change in the same pace as the technological opportunities do?

19. The adoption of technology means that the know-how, attitude and behavior of consumers has to change

20. And while everybody likes change, nobody wants to change

21. WHY NOT?

22. According to Robert E. Quinn, professor at the University of Michigan, people like to stay in their comfort-zone

24. You are comfortable in your current situation and the result of a change is unknown, including possible sight effect, learning curve etc.

25. This behavior is well explained by the prospect-theory

26. The prospect-theory states that people strongly prefer to avoid losses than to acquire gains

27. This behavior leads to risk-aversion

28. And when people avoid risk, change is less likely to occur

30. What happens when technological innovation outstrips social adoption of technology?

31. According to John Thackara we’ve lost sight of what value new technologies add to our lives…

33. This crisis of innovation, the spread between that what is possible and that what is used today, has hardly ever been larger

34. According to Stephen Carver this means we have to focus on how technology is used…

36. We’ve thus entered an age that is about how people use technologies.

37. We call this age the application-age: an era where the real meaning is in the use

38. Research Director at PhilipsLab, Josephine Green, explains what this new age means

40. So when you innovate you have to focus on what customers can use

42. Companies keep innovating so they can sell better products for better profits to their best customers

43. But listening to their best customers with the biggest needs is driving them away from mainstream. Because the mainstream wants to use a simpler, more affordable product

44. Clayton Christensen, a professor of Business Administration at the Harvard Business School, calls this The Innovators Dilemma

46. CONCLUSION:

47. The growth opportunities are with the non-users: the people who historically couldn’t afford to own or use the innovation

48. Set-up a new business unit within the company to pursue the gradual transition to the disruption within your market