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5.3 - Coggle Diagram
5.3
Preparing for disruption
To protect themselves, organisations need to constantly scan both the horizon for emerging technologies and their industries and markets for signs of potentially disruptive new entrants.
Horizon scanning
The Organisation for Economic Co-operation and Development (OECD) describes horizon scanning as “a technique for detecting early signs of potentially important developments through a systematic examination of potential threats and opportunities, with emphasis on new technology and its effects on the issue at hand.”
Many organisations take input from third party firms, such as consultancy organisations
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Organisations use horizon scanning to identify potential impacts, threats and opportunities from emerging technologies
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Responding to disruption
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Constantinos and Constantinos, argue that disruptive innovations are not necessarily better than incumbent propositions:
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Adopt the innovation by playing both games at once – effectively this is the recommendation made by Prof Christensen and his colleagues.
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Additional options
Divest
Before or after a new entrant acquires significant market share, divest the incumbent business unit.
Acquire
Before a new entrant acquires significant market share, the incumbent could attempt to acquire the new entrant before it becomes too big to stop