Working Papers, Department of Management, Aarhus School of Business, University of Aarhus
Arne Stjernholm Madsen and John P. Ulhøi
The Innovator's dilemma revisited. The Home Communication Concept (HCC)
Abstract: The case described in this article is based on an
innovation project at Ericsson Denmark in 1997. The project has been called
the home communication concept (HCC), and represents the response of a
major ICT manufacturer to the reshaping of the telecom market, paved by
Internet technology. The project is described from its start in summer 1997
to the end of 2001. This is a unique case study in more than one respect.
The first author followed the project very closely during his employment in
a new business development department (BDD) at Ericsson Denmark. Secondly,
the study covers all phases and aspects, from inception to field trials.
Thirdly, it represents a radical innovation based on a disruptive
technology (Internet technology), which transcends the traditional business
of the company in question. The paper describes the entire project, and
tries to present it within a framework capable of analysing the actual
events. In this respect, it not only demonstrates the classical dilemma of
management during disruptive technological development, but also
illustrates the internal problem of allowing a creative BDD to become
'sectarian’, i.e. blindly believing in itself and suspicious of the rest of
the world. Using the framework presented in this paper, several fundamental
concerns regarding existing research are identified and discussed. In
closing, implications for research and management are addressed.
Keywords: Management; (follow links to similar papers)
66 pages, May 13, 2003
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