Disruptive Innovation

Introbooks Team

Summary

The term 'Disruptive Innovation' was given in the year 1995 by 
Clayton M. Christensen and is regarded as one of the most 
influential and important innovations of the 21st century. 
Disruptive Innovation refers to the innovation which helps in 
creating new market and value network in place of the existing 
market and value network which leads to the disruption of the 
market-leading firms, alliances, and products that had already 
been established earlier. Each and every innovation cannot be 
regarded as a disruptive innovation even if they are bringing 
about change in the existing system. 
In accordance with the 'Theory of Disruptive Innovation' 
disruptive innovation has been classified into two types- 
"low-end disruption" and "new-market disruption." The low-end 
disruption is a type of disruption which occurs when the 
changes within the product take place at a higher rate than the 
customers are able to adapt to the changes made within the 
product. The new-market disruption occurs when a new 
product emerges in the market that has not been served 
earlier by any of the incumbents of the industry and which fits 
itself within the new or emerging market segment. 
The process of disruptive innovation is considered important for 
business leaders because of the benefits that it provides to the 
customers of the market. A disruptive innovator provides the 
products at a favorable price to its customers as well as years 
at creating a new and improvised value of his/her product by 
making additional changes in the product. The process of 
disruptive innovation has been proven beneficial for executives 
also. 
The first disruptive innovation was encountered by the human 
beings in around 10,000 BC in the Middle East, and since 
then it has continued to take place.

Available since: 11/06/2019.

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