Performance trajectory

Definition

Performance trajectory refers to the rate of improvement and evolution in a product's performance over time, particularly in relation to technology and consumer needs. This concept is essential for understanding how products progress through different stages of development, which can influence market dynamics and competitive positioning, especially in the context of disruptive innovation.

5 Must Know Facts For Your Next Test

1. Performance trajectories often show a trend where products improve significantly in specific attributes, like speed or capacity, especially as technology advances.
2. In the context of disruptive innovation, new entrants may offer products with lower performance initially but improve rapidly along their performance trajectory.
3. Established companies might miss disruptive innovations because they focus on sustaining innovations that improve their existing products rather than recognizing the emerging trajectories of new technologies.
4. Understanding performance trajectories can help innovators identify market opportunities and anticipate shifts in consumer preferences over time.
5. The concept emphasizes that not all improvements in performance are linear; instead, they can accelerate or decelerate based on technological breakthroughs and market demands.

Review Questions

• How do performance trajectories help in identifying potential disruptive innovations in the market?
  • Performance trajectories allow companies to monitor how new products evolve over time in terms of performance improvements. By analyzing these trajectories, businesses can identify emerging products that may initially underperform but show rapid improvement potential. This insight can alert established firms to potential disruptive threats that they might otherwise overlook if focused solely on sustaining their current offerings.
• What is the relationship between sustaining innovation and performance trajectories within established firms?
  • Sustaining innovation focuses on improving existing products to meet the demands of current customers, often along established performance trajectories. However, this focus can lead to a blind spot where companies neglect emerging technologies that initially perform below their standards. This neglect can allow new entrants to develop disruptive innovations that eventually surpass the established offerings as they move along their own performance trajectories.
• Evaluate the impact of technology adoption lifecycle on performance trajectories and market competitiveness.
  • The technology adoption lifecycle illustrates how different segments of consumers adopt new technologies at varying rates. This lifecycle impacts performance trajectories by determining which products receive attention and resources at various stages. Early adopters may drive initial improvements in performance, while later segments influence broader acceptance and evolution. Understanding this relationship helps firms strategize on product development and marketing efforts to stay competitive as they navigate through changing consumer preferences and technological advancements.

Related terms

Disruptive innovation: A process by which a smaller company with fewer resources successfully challenges established businesses, often by targeting overlooked segments and improving over time.

Sustaining innovation:

Improvements to existing products that enhance their performance and help established companies maintain their market position.

Technology adoption lifecycle: A model that describes the adoption of new technologies over time, typically segmented into innovators, early adopters, early majority, late majority, and laggards.