Disruptive Innovation And Its Innovation Essay

1906 WordsMay 22, 20168 Pages
Executive Summary “A disruptive innovation is a technologically simple innovation in the form of a product, service, or business model that takes root in a tier of the market that is unattractive to the leaders in an industry.” – Clayton M. Christensen A disruptive innovation is a process of development of new products or services to substitute existing technologies and attain a competitive advantage in the market (Christensen, The innovator 's Dilemma, 1997) . Disruptive innovation transforms an existing market by introducing simple, convenient, accessible, and affordable technology where complication and high cost is the status quo. In today’s turbulent environment having disruptive innovation is essential, both for growing a business and protecting existing markets. However, leading disruptive innovation necessitates new mind-sets and behaviours, for the organisations that develop them (Kaplan, Leading disruptive innovation, 2012). In organisational context, disruptive innovation induces a wide range of change in organisational status quo and needs to be managed by new strategies. Disruptive innovations bring a very different value proposition to the market than previously available one. Usually disruptive innovations underperform established products in mainstream market (Christensen, The innovator 's Dilemma, 1997). In order to deal with disruptive changes organisations as a whole should foresee the impacts of the changes, lack of such anticipation and

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