and value network and which has the potential to eventually disrupt an existing market and value network, or they can even displace established market leading firms, or products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995. Not every innovations/technology are disruptive, even if they are revolutionary. A disruptive technology is one that displaces an established technology and shakes up the industry or a ground-breaking product that creates
which has in turn shaken up the industry, disrupting the existing market. The new innovation can be used by companies as competitive advantage by altering and enhancing the way in which their business is conducted. This is in accordance with Clayton M. Christensen, a Harvard Business School professor (1997). The biggest and most disruptive technology that has impacted the industry at large has been the Internet with the emergence of Mobile Internet. It has also been deemed as the most powerful source
He describes the term further in his book The Innovator's Dilemma. In his sequel with Michael E Raynor, The Innovator's Solution, Christensen replaced the term disruptive technology with disruptive innovation because he recognized that few technologies are intrinsically disruptive or sustaining in character; rather, it is the business model that the technology enables that creates the
companies, which pursue the strategy of entering the market created by outsiders, in a role of a follower. They allow small pioneers to lead the way into new market territory. For example: IBM let Apple, Commodore and Tandy define a personal computer (Christensen, Bower, 1995). The second possible response taken by the incumbents is creating a new market by corporate venturing. It means using a start-up to create their own disruptive technology from a separate organization. The start-up would obtain a
Background Who is the king of the movie rental industry? Is it Blockbuster, Redbox or Netflix? Blockbuster was the king of VHS rental with their brick and mortar stores for more than 20 years. Netflix was the first to market with the idea of shipping DVDs directly to consumer’s homes but are now focusing their resources and attention to online streaming. Netflix is slowly getting out of the DVD and Blu-ray rental game by raising the prices of their DVDs and Blu-rays. Netflix is spending more
10 Books Every District Manager Should Read or Listen too Nobody knows everything right off the bat. Some people have better instincts than others but most great leaders strive for self improvement. As a manager it’s your responsibility to educate yourself as best you can and apply that new found knowledge in your professional and personal relationships. Being a boss is not just about giving orders, it’s about communicating and encouraging innovation. Knowing district managers have a crazy schedule
---------------------------------------------------------------------- References [1] Joseph L. Bower and Clayton M. Christensen 1995 Harvard Business Review: Disruptive Technologies: Catching the Wave [2] David J. Teece The theoretical context of strategic management: Profiting from technological innovation: Implications for integration, collaboration, licensing
business has matured, the pursuit of new platforms for growth entails daunting risk — to put it simply, most companies just don’t know how to grow, and pursuing growth the wrong way can be worse than no growth at all. In The Innovator’s Dilemma, Clayton Christensen showed how companies that
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INTRODUCTION In the past decade, the world and the markets alike have experienced rapid change and this change continues at an ever increasing pace. New products emerge in every field resulting in the creation of needs; people have never been aware or thought of. According to Hamel (2000 p18), “the latitude of innovation has never been broader –if only our minds can stretch to it”. Innovation is the successful development and application of new knowledge, disruptive innovation therefore, is an innovation