Chapter 3.1 Ebusiness{0}
Disruptive versus Sustaining Technology
The article “Disruptive vs. Sustaining Technologies” by Russell Shaller, W. L. Gore and Associates, discuss the differences between disruptive and sustaining innovations. It talks about the situations of when it is best to improve a product rather than producing a new one. He gives one main example of how in the late 1970’s the primary method of long-distance communications was based on coaxial cable, a microwave radio, or sometimes a satellite. These channels of communication were limited on capacity and were very expensive. Shaller shows that the fiber-optic links became a method of disruptive technology when it took the lead for long-distance communication offering higher capacity to transmit more information over longer distances. (Shaller, 2004)
This article is related to the material for chapter 3.1 in which talks about the differences of disruptive versus sustaining technology. According to the book, disruptive technology sets a new market for a product and destroys old ones. In contrast, sustaining technology produces improved products within the same market. (Baltzan & Phillips, p.88)
The figure 3.1 of the text book illustrates the companies that expect future growth based on new investments and it shows the companies that expect future growth on existing investments. Dell is the company that is more towards supporting disruptive technology while General Motors and Phillips Petroleum is more towards sustaining technologies. In addition, the figure 3.2 shows the companies that have based their business in disruptive technologies. (Baltzan & Phillips, pp.88-89)
This article also relates to the impact of the internet in business. According to Baltzan and Phillips, the internet in business is a method of disruptive technology because it created new changes in many companies and caused the destruction of old ones. Industries such as; travel, entertainment, electronics, financial services, retail, automobiles, and educations and training have been impacted by the internet. (Baltzan & Phillips, p.90)
I liked reading the article because I could connect all the information from Shaller’s point of view with the information from the book. Besides the example from the article, I learned that there are other products that have been developed as disruptive technology.
Works Cited
Shaller, Russell, W.L. Gore and Associates. (2004). Disruptive vs. Sustaining Technologies. Retrieved 2010 from http://www.evaluationengineering.com/index.php/solutions/management-and-career/disruptive-vs-sustaining-technologies.html
Baltzan & Phillips, Business Driven Information Systems, 2nd Edition, McGraw-Hill, Inc. 2009.