Understanding and applying Christensen

Munir MandviwallaFox School of Business

Temple University

Porter “Five forces”SWOT

Financial analysis“Best practices”

Christensen

Source: Christensen, C., Anthony, S., and Roth, E. “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change.” Harvard Business School Press, 2006, p.4.

SustainingMove along a known path

such as improve an existing product.

Low-endExisting products are “too

good” and relatively expensive such as

Smartphones?

New-market Change the product to get new people by changing its nature or by making it more

convenient (reduce expertise or wealth

requirement)

Source: Christensen, C., Anthony, S., and Roth, E. “Seeing What’s Next: Using the Theories of Innovation to Predict Industry Change.” Harvard Business School Press, 2006, p.6.

ResourcesWhat a firm has

ProcessesHow a firm does its

workValues

What a firm wants to do

Strengths

Weaknesses(blind spots)

Source: Singh, D. “Porter’s Value Chain”, August 5, 2009. Retrieved from Wikipedia on September 13, 2010. http://en.wikipedia.org/wiki/File:Porter_Value_Chain.png

What matters most to

customers?

Control

Integrate (modularize)

Integrate to improve what is “not good

enough” (e.g., speed, customization, convenience)

Outsource what is “more than good

enough”