As the digital performance management market leader, Dynatrace could be forgiven for resting on its laurels – but driving innovation is still top priority, even facing the risks of the Innovator’s Dilemma.
In the years since Clayton Christiansen’s book, the Innovator’s Dilemma is now a familiar challenge: incumbent companies with established customers are loathe to invest in innovations that might disrupt existing revenue streams – thus eventually ceding leadership to more nimble challengers.
To avoid this fate, Dynatrace has been investing time and resources into Ruxit, a cutting-edge performance monitoring tool. Yet while the Ruxit product itself is unquestionably innovative, so too is Dynatrace’s business strategy.
To free the Ruxit division to innovate in a disruptive market environment, Dynatrace executives spun off the effort, giving it the resources and leadership it needed, but without the traditional management constraints of traditional product development efforts.
The Ruxit team organized around its novel product plan, but also innovated its go-to-market and sales strategies. Now that it’s in the marketplace, Ruxit competes with hot new players on the block like New Relic and AppDynamics.
The challenge Dynatrace faces now, however, is that Ruxit’s slick user interface and seamlessly integrated architecture make Dynatrace’s mature products look rather stodgy and old-fashioned in comparison.
Read the entire article at http://cxblog.dynatrace.com/index.php/2015/10/15/ruxit-dogfooding-the-cat-food/.
Copyright © Intellyx LLC. Intellyx advises companies on their digital transformation initiatives and helps vendors communicate their agility stories. As of the time of writing, AppDynamics and Dynatrace are Intellyx customers. None of the other organizations mentioned are Intellyx customers. Intellyx retains final editorial control of this article. Image credit: Dynatrace.
