Conference
Orlando, Florida June 20-21, 2005
http://www.halldale.com/
Simulation Innovation I:
Technology Disruption in the Simulation Industry
Roger Smith
SPARTA Inc.
rsmith@sparta.com
407.380.0076
© Copyright 2005, Roger Smith
Simulation Innovation
Innovation & New Technology Displace Established Technology & Practitioners
1947
1985
2005
Christensen’s Disruptive Innovation
Product Performance
Performance demanded
at the high end of the
market
Performance demanded
at the low end of the
market
Market disruption
opportunity
Time
(Christensen, 1997)
Progress = Waves of Disruption
Own the Market
Share Low End Upper
Half
Niche
Product Performance
OOS
SIMNET
Forterra
AW-VTT
America’s
CCTT
FSW
Army
Spearhead
MS Flight
Time
Squeezed Out
Closer Than You Think!
Disruptive Forces in Simulation

Computer Technology
 Graphics Cards
 Game Companies & Market


Physical Devices
 Theme Park Ride Technology
 Electric vs. Hydraulic Motion
Actuators
Customer Perspective
 Societal Immersion in Games
 Military Acceptance of Games
Growth Strategy
Own the Market
Product Performance
Simulation:
Weather,
Markets,
Medical
Share Low End Upper
Half
Move Up:
Change Customers
Defense Training
& Analysis
Corporate Training,
Education
Move Down:
Change Industries
Time
Niche
Squeezed Out
Recommendations




Disruptive innovations move through markets
Move Vertical to new technologies
Move Up to new customers
Move Down to new industries
References



Utterback, J. (1996). Mastering the Dynamics of
Innovation. Harvard Business School Press.
Christensen, C. (1997). The Innovator’s Dilemma:
When new technologies cause great firms to fail.
Harvard Business School Press.
Christensen, C. & Raynor, M. (2003). The Innovator’s
Solution: Creating and sustaining successful growth.
Harvard Business School Press.