Disruptive Innovation Theory By Christensen

Companies find opportunities in product innovation by providing new products and services to customers. This keeps current customers interested in doing business with the company and has the potential to attract new customers. Sometimes this is done by creating new products, greatly changing an existing product or by just changing the way the current product is presented. Another form of product innovation is branding. By creating a more positive brand image a company can keep the interest of consumers.

Innovations form the main sources of competitive advantages and are always of significance for the growth of a company. Companies or organizations put their greater efforts in improving their performance by finding new ideas and knowledge on the best way of beating their competitors and therefore give satisfaction to their customers. There are various factors involved in the innovation design system which can be either internal or external.

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

Innovation is a term that is so widely used and thought of as simple inventions, but it is truly so much more. Innovation is a complex thought process of new ideas that can be implemented for the betterment of many. Change and adaption within any environment is the foundation of innovation and identifying its sources make it easier to implement innovation. The easier it is to foster an innovative environment and inject innovation; a positive impact on a business is instantly seen

According to Hang, Chen and Yu, 2011 the disruptive innovation theory was used extensively to practicing managers. “It pointed out clearly that the threat to successful incumbents which may focus on the needed sustaining innovation and hence could fail to capture the new prospects presented by disruptive innovation”. The disruptive innovation may be

For instance, Wal-Mart is a good example of a company that has used a disruptive business model (Hess, 2012). Wal-Mart came into the market and introduced cheaper products while opening thousands of stores across the globe. Their concept of buying less at a lesser fee seemed to have attracted a lot of customers and this translated to the right revenues for the company within the first year of operation. Wal-Mart is arguably the biggest store globally and the largest employer with an employment capacity of over two million people globally. A disruptive model ensures that a company leaves an old way of shaping their products and learns new methods of

Innovation is not a single activity; it is a process. For businesses, innovation means fresh ideas, developing new products or services and its effective processes. Innovation can be key to any business or company in the future. Bringing innovation into your business can help you save time and money and gives you the competitive advantage needed to grow your business.

In Clayton Christensen’s Disruptive Innovation for Social Change he changes the term “social change disruption” into a catalytic innovation. Disruptive innovations challenge most industries by offering them simpler alternatives to their low-end customers. Catalytic innovation, however, can outdo the status quo by offering an acceptable solution to inadequately addressed social problems. Catalytic innovations are differentiated by its primary focus on social change on a national scale. For example, in the article mentions how Minneapolis health clinic, MinuteClinic is a catalytic innovation.

The course reading introduces many things to consider when creating innovation. Clayton Christensen specifically identifies three lesson that are essential of disruptive change. The first lesson that Christensen explores is that of technological enablers. This disruption creates routine problems solutions. In the IT world, this is much like the definition of automation. It is a step by step process that says, “If this occurs then proceed here.” Eventually, you are able to narrow down the original cause rather than trying to treat just the symptom of the problem. As Christensen states, this can save an industry much needed time and effort. This, in turn, leads to monetary savings. I do agree with Christensen with the fact that technology can

Tidd et al (2000) states, “the innovation is a business process of revolving opportunity into new ideas and of putting these into widely used practice. In term of the nature, there are five major types of innovations: novelty, competence shifting, complexity, robust design and continuous improvement. While in term of the extent of change, innovations can be divided into incremental, radical and

Innovation is normally used to denote the process that takes place when a product or a process is developed, from idea to market; the concept of invention only denotes the process that takes place when new ideas or solutions are generated. Baumol (2002) argues “is it possible to have lots of inventions and still lack innovations. Nevertheless, inventions are a necessary precondition for innovation”.

Disruptive change requires new strategies. When conditions change rapidly, organisations find their former approaches which have led to success in the past, are no longer effective. It can be hard to let go of these approaches if they have been a source of competitive advantage. This leads many managers to assume that successful responses to disruptive change are a matter of luck. But it is possible to craft strategies to best exploit opportunities ahead of the competition.

Innovation refers to finding new ways to improve the existing products, services, processes, technologies, and employee performance in an organizational setup. In today's competitive business environment, organizations have to focus on bringing innovation in each and every aspect of their business operations; like products or service offerings, enterprise resource planning systems, marketing and promotional efforts, and organizational structure. The market challenges and competitive pressures also force organizations to use a blend of all these innovation processes in their business activities. Therefore, it is vital to give an equal focus on product innovation, process innovation, marketing innovation, and organizational innovation within the limited organizational resources and capabilities.

The case study of “Disruptive Innovation” is a studying that concentrated and described an innovation as the affordable price products for people in the entire world to use. This research indicated about certain disruptive innovations such as the laptops, the routers, smartphones or desktop photocopier that are the substitutions for other companies’ commodities. Furthermore, Porter five forces strategy is a structure to examine the level of competition in today’s market and to make an improvement for the business strategy. Likewise, these forces are including: the threat of new entrants, when suppliers have power, when customers have power, the threats of substitutes and intensity of competitive rivalry. Therefore, this report was assigned to analyze Porter’s five forces strategy for applying toward the case of disruptive innovations and demonstrating on how it affects or relates to most of the companies worldwide.

Innovation offers the companies a competitive advantage. Presently and within the future, more than any time in history, the key to competitive advantage is innovation. However innovation will facilitate businesses meet all of their strategic challenges, not simply competition; to illustrate, in confronting accelerating rates of change, globalization, apace advancing technology, a additional numerous workforce, associated a modification from an industrial to a knowledge-based economy. Meeting all of those challenges helps the firm attain competitiveness, and meeting these challenges suitably depends on innovation. Innovation allows a firm to workout its challenges in distinctive ways in which build competitive advantage either through relative differentiation, a relative low-priced position, or few acceptable level of each. Innovation cannot assure success, however success cannot be achieved within the end of the day without it.