Innovations & Technologies

What Is Disruptive Innovation?

According to the theory developed by Dr. Clayton Christensen, disruptive innovation is the process whereby an innovative newcomer’s product or service disrupts the market by displacing an established competitor and even reshaping an entire industry. As for the new, separate market, scientists recognize that disruptive innovation theory means that the first mainstream customers will move to a new market segment, such as the “disruptive market” or the “distracted market.”

Christensen replaced the term disruptive technology with disruptive innovation and realized that few technologies are inherently disruptive and sustainable, but it is the business model that enables the technology that creates the disruptive effect. Christensen replaced it with “disruptive innovation,” because he recognized that a few technologies are “inherently disruptive” and “sustainable” in their characters, and rather than producing disruptive effects, it is the business models that enable the technologies that produce disruptive effects. He replaced this term “distracted technology” with “disruptive innovation.”

While disruptive innovations are entering the mainstream, established companies are embracing new concepts and technologies to respond to competition. Companies are beginning to see their markets dominated by new products, services and services with new business models and new technologies. Disruptive innovation is the business model; success is achieved not by creating sustainable innovation, but by introducing disruptive innovation that builds new networks, communities, and marketplaces.

In a truly disruptive innovation, a product is rooted at the bottom of the market and develops a bad, low reputation. If an existing company needs to know as early as possible, so as not to be replaced by a new entrant, what it is observing is likely to be disruptive innovation. Knowing what disruptive innovations are and are not is important if we are to steer innovation to understand its true nature. By detailing what we propose and identify as the three types of disruptive innovation, we can help reduce confusion about what “disruptive innovation” actually is.

Disruptive innovation is defined as innovation that creates a new market or value network by disrupting an existing market and ultimately displaces the product, alliance or industry of an established company. Market disruptions: A disruptive technology or innovation is innovation that helps create new markets and value networks, and ultimately disrupts existing markets or alliances in an industry such as the Internet of Things (IoT) or mobile phones. Disturbance: Disturbing innovations are innovations that create or disrupt an existing market (e.g. by displacing the established market – leading companies or an alliance of companies in the industry).

Disruptive innovation refers to innovations that serve untapped or untapped market segments or create their own market or value-added network that ultimately disregards incumbents and redefines the face of the sector in which they operate. A disruptive innovation begins with a new company that identifies a neglected or traditionally overlooked segment or demographic in an industry. Disruptive innovation is an established industry that performs better than its existing offerings, displacing market leaders in a particular market area and transforming the industry and / or disrupting markets and alliances.

The term “disruptive innovation” was first introduced and used in this sense in Christensen’s book “The New Business Model of Disruption” in the early 1990s. Although disruptive innovation with a different DNA is identical to his definition of disruptive innovation, his model can be applied to explain any kind of innovation. Improving what is already offered to the mainstream market is not disruptive “innovation” in its sense; rather, it is innovation that maintains what is already offered in its current form, such as a product, service, or service provider. According to his theory, disruptive innovations consist of a combination of two different types of innovations: disruptive and non-disruptive.

Although the term “disruptive technology” is widely used, it seems to be a more appropriate term, since few technologies are inherently disruptive. Disruption is innovation that makes things easier and more affordable, and it is the business model that enables the technology that generates the disruptive effects. I have tried to give this term a very specific meaning, but technology is a combination of two different kinds of innovation, which together make a great value.

To maintain its usefulness, disruptive innovation theory must take into account the difference between linear platforms and enterprises, since platforms are the dominant business model of the twenty-first century. Combining “disruptive innovation” with breakthroughs that change competitive patterns in the industry is a false dichotomy, because different types of innovation require different strategic approaches. Not all large organizations start with disruptive innovations, but pursue innovation strategies by identifying new or underserved markets or re-marketing existing market segments.

While some authors argue that high-quality innovations that improve the quality of a product or service can in themselves cause disruption, I reject this idea and repeat that disruptive innovation is an important part of any business strategy, but not the only one. Others define disruptive innovation as creating new value, such as uprooting an existing market by introducing new or improved products or services that incumbents were not widely expected to do. According to Christensen, “disruptive innovation” is when a small business, which normally has few resources, is able to challenge an incumbent (often referred to as an incumbent) by entering the lower end of the market and moving up there. Empirical results have shown that established companies outperform and outperform sustainable innovations in disruptive – innovative – contexts.