So a tiny start-up company called "Sony" built portable,
battery-powered transistor radios people could carry around with them.
Sure, the sound was terrible, but who cared? Then, with the experience
and revenue stream from the portables, Sony improved its technology to
produce cheap, low-end transistor amplifiers that were "good enough" for home use, and used
those revenues to improve the technology further and produce better
radios. Today, vacuum tubes are only used in ultra-high-end amplifiers
in concerts or recording studios. Vacuum tubes still sound slightly
better, but most people find the much cheaper product adequate. (another review of Innovator's Dilemma, Motley Fool, 1999, from Google Cache)
...
" * Don't try to build a better X, where X is something dominated by a large company. X can be an operating system, personal computer, car, whatever. I think Be Inc. was a classic example of this (great computer/OS but crushed by incumbents)
* Don't build something that could be a feature for one of the X above. Chances are the big company will re-implement your feature. (Apple Dashboard vs Konfabulator)
* Create something new in a "niche" market. This something new can have amazing future potential, but it should by niche-y enough to be ignored by the large players, at least until its too late
* Become self sustaining as quickly as possible. The lower cost structure of a startup allows the revenue from new technology to be significant. This allows the startup to enter what Christenson calls the "sustaining innovation" part of its curve. Thats where all companies want to be."
battery-powered transistor radios people could carry around with them.
Sure, the sound was terrible, but who cared? Then, with the experience
and revenue stream from the portables, Sony improved its technology to
produce cheap, low-end transistor amplifiers that were "good enough" for home use, and used
those revenues to improve the technology further and produce better
radios. Today, vacuum tubes are only used in ultra-high-end amplifiers
in concerts or recording studios. Vacuum tubes still sound slightly
better, but most people find the much cheaper product adequate. (another review of Innovator's Dilemma, Motley Fool, 1999, from Google Cache)
...
" * Don't try to build a better X, where X is something dominated by a large company. X can be an operating system, personal computer, car, whatever. I think Be Inc. was a classic example of this (great computer/OS but crushed by incumbents)
* Don't build something that could be a feature for one of the X above. Chances are the big company will re-implement your feature. (Apple Dashboard vs Konfabulator)
* Create something new in a "niche" market. This something new can have amazing future potential, but it should by niche-y enough to be ignored by the large players, at least until its too late
* Become self sustaining as quickly as possible. The lower cost structure of a startup allows the revenue from new technology to be significant. This allows the startup to enter what Christenson calls the "sustaining innovation" part of its curve. Thats where all companies want to be."
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