1. Disruptive Innovations By Group 3 Presented By Pushpak Elledu - 3275 Venkata Karthik - 3273 Vivekananda sai - 3576 Prachi Nitin Priyamvadha Harsh sharma Atrey Bhardwaj

2. It is not just the magnitude of the advance If it works to sustain the existing business model, it is not disruptive A change in business model from the existing one to a new one which is more efficient and/or better addresses the demands of consumers is the key What Makes An Innovation Disruptive?

3. Disruptive Technologies Bring new value propositions to market Underperform established products in mainstream markets Have characteristics that appeal to fringe or new customers Products are typically cheaper, simpler, smaller, less capable, but more convenient to use disruptive technologies that may underperform today, relative to what users in the market demand, may be fully performance- competitive in that same market tomorrow.

4. What is a disruptive technology? Performance (log. Scale) TimeSource: Adapted from Christensen (1993) Second technology Third technology First technology

5. A well researched example: hard disk drives Source: Christensen, 1993 Intersecting Trajectories of Capacity Demanded versus Capacity Supplied in Rigid Disk Drives

6. Why are incumbents (often) sitting ducks? Economic interest Better-off funding incremental supportive innovation Organizational logic Structural fit, interaction routines, collective tacit skills Social heritage Network embeddedness (customers, suppliers, partners) Wrong Value Network Context of corporations business environment leads to missing competition arising from outside Organizational Structure Companies organized by a products substructure fail when fundamental architecture changes

7. Why are incumbents (often) sitting ducks? Core Competencies Firms fail when a technological change destroyed the value of competencies previously cultivated and succeeded when new technologies enhanced them Technology S-curves Firms fail when they miss inflection points along their main product thrust and specifically when they miss technologies advancing in related fields Wishful thinking The larger and more successful and organization becomes, the weaker the argument that emerging markets can remain useful engines for growth.

8. The Incumbent's Weak Response Late, slow, half-hearted, tentative and ineffective On the wrong trajectory (accelerate their own, ignore the new) Lacking critical mass, under funded, under supported Expensive . Time compression diseconomies . Lasting stalemate Often strategically flawed . Transfer of old value creation system

9. To Challengers, Disruptive Technologies Open A Window Of Opportunity: They are disruptive for incumbents, supportive for challengers They mix technical , social and value innovations, making them difficult for incumbents to emulate They create / open vast new low-end markets to use a staging areas... They originate and spread below / beyond the radar screen of incumbents They draw on distant and diverse sources of knowledge They rely on new, or hard to enter, social networks

10. Disruptive Technologies Established Disruptive Technology Simulations via Training Classrooms Edutainment: Virtual Reality and Games Face-to-face collaborative work Online forums/social networking Face-to-face interaction Social Networking Programmes of study delivered on campus/blended learning with few delivered totally online Mobile Technology; Open Education Resources; MOOCs (Massive Online Open Courses) Build prototypes 3D Printing

11. Are these companies clueless? Not every technology that looks disruptive is feasible. You cannot chase every possible disruptive technology to cover all your bets Even technologies which are well-researched and appear to be potentially disruptive can be very difficult to bring to market The Innovator's Dilemma: A company which is in an existing business and listening to its existing customers feels that there is no need for anything new.

12. Incumbents that respond successfully Widely distributed prospecting for and active sensing of new knowledge, worldwide, including emerging / latent market needs Cultivating absorptive capacity and knowledge melding Sustaining a pluralistic dialogue, internally and externally Creatively challenging existing orthodoxies and business models Letting autonomous strategic processes flourish, and select, at various levels, from their outcomes Fostering Internal differentiation of organization

13. Anti-Disruptive Technology J. H. Helms, Ford Research Lab.

14. Lockheed Martin Aeronautics

15. Role Stealth multirole fighter National origin United States Manufacturer Lockheed Martin Aeronautics Produced 2006present Number built 63 Unit cost F-35C: US$199.4M (flyaway cost, 2013) Role Stealth air superiority fighter National origin United States Manufacturer Lockheed Martin Aeronautics Boeing Defense, Space & Security Produced F-22: 19962011 Number built 195 Unit cost US$150 million (flyaway cost for FY2009) Lockheed Martin F-22 Raptor Lockheed Martin F-35 Lightning II

16. Role Remote piloted aircraft, UAV/UAS Manufacturer General Atomics Aeronautical Systems Produced 1995present Number built 360 (285 RQ-1, 75 MQ-1) Unit cost US$4.03 million (2010) General Atomics MQ-1 Predator Role Unmanned combat air vehicle National origin United States Manufacturer General Atomics Aeronautical Systems Produced 2007present Number built 57 Unit cost US$16.9 million (2013) General Atomics MQ-9 Reaper

17. UAS Data Link Pilot sits in Ground Control Station (GCS) Can be located anywhere in the world If line of sight exists, data is streamed directly to GCS from drone If line of sight does not exist, a satellite relay is utilized Spacecraft allow a pilot in Nevada to control drone over Afghanistan No human limiting factors. In March 2011, the U.S. Air Force was training more pilots for advanced unmanned aerial vehicles than for any other single weapons system.

18. A Part of the Aviation Revolution Unlimited Applications Military/Security Defense Surveillance Civil Defense Natural Disasters Humanitarian Relief Science Environment Weather & Storm Tracking Commercial Wireless Communications Precision Agriculture Cargo Transport Dull, Dirty, Dangerous Missions

19. Current Military Uses Significant increase in UAV usage by military forces around the globe. Most prevalent role of UAVs in the military: Intelligence, surveillance, and reconnaissance (ISR) Air Strikes using missiles and bombs Over 40 countries currently possess or are developing UAVs, including: The U.S. China India Great Britain Israel

20. Potential Benefits Cost effectiveness when doing reconnaissance in both small and large areas. Loss of life is minimized. Can do reconnaissance without being spotted, due to ability to climb to such a high altitude. Some are equipped with weaponry which can be used to strike down targets. They are equipped with night vision and can see through clouds. Have the ability to stream video to anywhere (President, Secretary of Defense, Generals etc.) . They're 1/20th of the weight of a fighter jet so they can fly longer on less fuel.

21. Figure: UAV Annual Funding Profile (In Million $) Source: OSD, UAV Roadmap 2002-2027, December 2002, p.20. Figure 5 breaks out the planned funding for each UAV throughout the Future Years Defense Plan (FYDP):

22. Figure compares manned to unmanned funding from 2000 to 2010. The chart reveals that UAVs will make up an increased portion of aircraft funding over the FYDP, growing from 4% in 2000 to 31% in 2010.

23. UAV have been proven effective on the battlefield and for commercial/civilian use As time goes on, UAV's will become smaller, faster, fly higher and stream better images. They should eventually replace fighter jets, and in doing so they will save many lives. UAVs such as the Predator will one day replace manned fighter The future of UAVs depend on the answer to the question How Much Is a Human Life Worth?

24. Is all lost? If you are an established, successful company, how do you counter? Choose 1 or 2 disruptive technologies that concern you the most and participate Set up separate organization in separate location with constrained funding Alternatively, invest in start-ups Manage expectations as markets are found for disruptive technologies by trial and error

25. What can managers faced with disruptive technologies do? Set up a separate organization small enough to get excited by small gains. Plan for failure. Dont bet all your resources on being right the first time. Think of your initial efforts at commercializing a disruptive technology as learning opportunities. Make revisions as you gather data. Dont count on breakthroughs. Move ahead early and find the market for the current attributes of the technology. You will find it outside the current mainstream market. You will also find that the attributes that make disruptive technologies unattractive to mainstream markets are the attributes on which the new markets will be built.

26. As we have seen the demand of UAV is increasing and they are expected to gradually replace the role of fighter Jets in defense field. As Lockheed Martin Aeronautics doesn't have drone division the most optimum solution would be to collaborate with others to get a foothold in that sector. Example: For F-22 Raptor Lockheed Martin Aeronautics is the prime contractor and is responsible for the majority of the airframe, weapon systems and final assembly, while Program partner Boeing Defense, Space & Security provides the wings, aft fuselage, avionics integration, and training systems. A similar approach can be taken to collaborate with General Atomics Aeronautical Systems to design a new unmanned combat vehicle integrating the strengths of both companies. What should Lockheed Martin Aeronautics do in such a situation?