Have Big Companies Learned How To Respond To Disruptive Technologies?

from the in-some-cases,-yes,-in-some-cases-no dept

With all the hype around the concept of “disruptive technologies” Tom Taulli now believes that many big companies understand disruptive technologies and how to deal with them. He believes that too many startups are relying on the fact that they have a disruptive technology that will bring down the established giants – not realizing that these established giants are on the lookout for such small disruptive companies and will crush them. His advice to such startups is to sell out to one of these big companies, rather than take them on. It’s definitely true in some cases, but there are, still, plenty of big name companies that don’t respond effectively to disruptive changes. So far, it appears that some large companies have understood the basics, and can respond to less disruptive changes where they’re simply replacing one offering with another. In cases where entire business models change, they’re a lot slower to realize the threat.

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Comments on “Have Big Companies Learned How To Respond To Disruptive Technologies?”

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dorpus says:

Can small companies respond to disruptive technolo

Despite the cultural mythology of the tinkerer who invents something in his garage and turns it into a big business, it is more often than not big companies or big government labs that have the resources to devise new inventions, including disruptive ones. The disruptive technology of the internet was invented by a government-funded military lab. The disruptive technology of microcomputers has its roots in the government-subsidized space program, which designed on-board computers for spaceships. VCR’s, Compact Discs, Walkmans, all disruptive technologies, were invented by large corporations. The hippy symbol of the VW buggy, which supposedly stood for independence or creativity or whatever, was invented by the Nazis under their socialist car manufacturing program. The World Wide Web was invented at a multinational, government-funded physics lab.

Later on, parasitic startups in the form of microcomputer makers or dot-coms acted like they “invented” microcomputers or the web. If anybody should fear the next disruptive technology, it is small companies that depend entirely on the fantasy of the disruptive technologies they supposedly invented. Large companies have the resources, foresight, and education to plan their survival well ahead of disruptive technologies, even if the media likes to portray large companies as anachronisms.

Al says:

Re: Can small companies respond to disruptive tech

“Large companies have the resources, foresight, and education to plan their survival well ahead of disruptive technologies, even if the media likes to portray large companies as anachronisms.”

You mean just like the RIAA. Yea, they definitely have the foresight and eduacation to fight against those evil downloaders alright. No disruptive tech can put them down. They’ll still be around in the next century.

Anonymous Coward says:

Re: Re: Can small companies respond to disruptive tech

Yes, they have successfully bought time by throwing their awesome financial resources into lawsuits and scaring the rabble into preserving the old system, perhaps indefinitely.

As much as techie rabble like to believe that music publishers are an anachronism, the reality remains that in order for a musician to make it big, he/she needs better equipment, facilities, training, marketing, and wardrobes, which can only come with big money backing them. The music industry may eventually re-brand themselves as “musical venture capitalists” or whatever, but they will still be around. The image of the starving artist who makes it big all on his own is just another cultural myth.

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