An exploratory system dynamics (SD) model presents disruptive innovation diffusion as a replicable process that can spawn business growth for d, Inc., a company that offers an over the air digital subscription TV service. Building on diffusion processes in epidemiology, marketing and sociology, the eight-sector SD model shows customer switching in the high-and low-end and non-consumption markets that disruptive innovators exploit. As extreme-condition scenarios test its robustness, the model shows performance results for the multiple market penetration and defense tactics that disrupter and incumbent firms execute through time. In a relentless hunt for superior performance and a sea of external-change triggers and internal-change levers, d, Inc. takes on cable operators who overlook low-end markets and devote their attention to and invest in higher-end tiers, their service tailored to more demanding customers. But low-end markets cannot absorb sustaining innovations that exceed what non-consumers need or know how to exploit. The results show that despite the high environmental turbulence, market risk and uncertainty facing d, Inc., being in a market that blends its commercial and technological competence with discontinuity and instability transients suggests ample opportunity for sustainable disruptive growth, even if markets contract.

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Date created

• 2005 July 17-2005 July 21

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• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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cc5bb0ac12a5b68b26b1583548898dae

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3c582e6f5cf305ef0030c7471b499022

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System Dynamic Society Records

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• This collection is part of the University Archives