Disruptive Innovation

Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a

Disruptive technology is a new way of doing something that initially does not meet the needs of existing customers. This type of technology tends to open new markets and destroy old ones. While, a sustaining technology produces an improved product that customers are eager to buy. This technology provides better, faster and cheaper products on established markets.

The places that innovative ideas come from can vary. The innovation process involves creativity of the mind. The ideas that surround innovation come from employees, customers, competitors and even your suppliers. Anything that deals with innovation is challenging. The purpose of this report is to identify the sources of innovation, how it affects industries and to evaluate disruptive innovation.

“The Innovator’s Dilemma” describes Christensen’s theory of disruptive innovation. But, his theory isn’t essentially briefed as one would assume. Her opinion is that case studies (like disk-drive industry) were chosen by the author to demonstrate his perception, as well as subjectively distinct success metrics.

Disruptive technology brings about many opportunities for both innovation and productivity outputs, however it can also be a risk. It includes developments that create substantial change across the economy for most people and businesses, the impact of which causes significant costs to adjust to due to capital being made obsolete and workers becoming underutilised. Clayton Christensen is considered to be the world’s top expert on the concepts of disruption innovation and technology and according to him the ‘introduction of digital disruption offers a better alternative to the present approach for solving customer problems’. Digital disruption is redefining the norm, changing both markets and competitors around the world. Whilst it can be a positive change for

In the the last class you had a quote that said “Innovation is a charge into the unknown”. In the past ten years, technology has reached new levels in every company. There seems to be a sweet spot in the innovation of technology. If you’re the first to push a new idea, some may question the success of the new innovation. If the innovation is successful, other companies my try to build a better model that can be more efficient. But if you missed the small window of opportunity, customers will not move forward in your idea, because there is something on the market that is great already.

What Christensen means is that using the words “disruptive innovation” in a non-jargon way is very difficult, as even Uber, the company most pointed to by many as the epitome of a disruptive company cannot even be defined as disruptive. Perhaps he is implying that the misuse of certain words can be equated to jargon, such as when people in everyday conversation refer to Uber as a “disruptive” company. Because of this, Christensen believes that the mantra that commands: “Disrupt or be disrupted” can be very misleading. He advises corporate leaders of incumbent companies to not overreact to this mantra by trying to solve the problem before it is one. Christensen implies that overuse of this phrase requires incumbent businesses to be extra vigilant

Nayar, V. (2010, June). A Maverick CEO Explains How He Persuaded His Team to Leap into

Wheelen and Hunger explains that new entrants to an industry makes it more competitive to share the market and resources (p.111).

This is the cross-boundary disruptive business strategy. Former Inter CEO, Andy Grove, has argued that businesses can be disruptive also by getting involved with an entirely different industry. Since only an established business, can grow its operations beyond its initial industry, this strategy is only suitable for big corporations.

Tidd and Bessant (2009) argued that “Unless an organization is able to move into further innovation, it risks being left behind as others take the lead in changing their offerings, their operational processes or the underlying models that drive their business”.

It is possible for established, well-known and admired companies to be unable to maintain their hold as the leader in their respective industries when faced with certain types of technological change. “Disruptive” innovations

A disruptive innovation is a concept of innovation that encompasses and establishes a new market by disrupting the current trends in the market and their existing value network (West, n.d.). It results in the replacement of the ruling market firms, alliances and products by capture a niche and an untapped field in the market. Usually the untapped market includes a segment of customers whose needs are either not addressed or overlooked. Capturing these essentials, thus the concept defines a substantial societal influence. Despite a disruptive innovation being revolutionary in nature, an innovation does not necessarily mean disruptive always. In most cases, it has been seen that the light of disruptive innovation is usually brought by the outsiders instead of the existing pioneers in the market. Basically, a process of disruptive innovation takes a longer

Technologies have the ability to revolutionize enterprises, making them more customer-centric and giving them the ability to be more resilient in the face of significant and often unforeseen change. The intent of this analysis is to evaluate and describe five specific areas where IT represents a significant risk to a company's competitive advantage. Second, this analysis concentrates on the five specific areas in an enterprise where IT can support and strengthen enterprises' core competitive advantages. Third, one of the five major risks faced by a company is evaluated in terms of how it could be mitigated to reduce risk and deliver significant value to the enterprise. The fourth and final step of this analysis is the evaluation of a one of the advantages, and how it can be accentuated and strengthened to ensure a company's ongoing successful operation. One of the most interesting factors with regard to technology's benefits and risks is how mercurial it can change over time. As Professor Clayton Christensen have often shown in his many case analyses published in the best-selling book The Innovator's Dilemma, there is greater need for agile, value-driven competitors even in the most stable and slow-growth market (Gebhart, 1998). The assessment of several industries in The Innovator's Dilemma underscore just how effective technology combined with creativity can be in creating innovation, at the levels of disruption that Apple achieved under the guidance of

This book proposes that the best way to overcome the competition, it to stop trying to compete with them. When a business does this, they leave behind the red ocean filled with sharks, and enter into blue oceans where they are free to grow without fear of being attacked. The authors surveyed over 100 companies and found that 86 percent were product extensions while the remaining 14 percent delved into blue oceans. Even though only a small number decided to brave the unknown, they generated 61