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•   What is disruptive innovation?


           According to Christensen (2009), disruptive innovation refers to any initiative that

    allows new clienteles to have access to a new product or service that historically was only

    accessible to consumers with lots of money or specialized skills. It also describes the

    process by which this product or service takes root initially in simple applications at the

    bottom of the market and then relentlessly moves “up market” and eventually displacing

    established competitors.


           According to Christensen,disruptive innovation takes the form of: lower gross

    margins, smaller target markets, and simpler products and services that may not appear as

    attractive as existing solutions when compared against traditional performance metrics.


    How does it come about?


    Disruptive innovation happens as market leaders recognize the major shifts in the needs

    of the new consumers and pays attention to them. Needs such as dissatisfaction with

    services; products that are no longer meeting their needs; overpricing, and useful but

    complicated products. The new open market and the infusion of technology that has

    given the consumer a voice has also propelled the disruption.


•   What is sustaining innovation?


    Sustaining innovation as the name suggests are those activities that companies continue

    to engage in as they sustain the needs of their traditional consumers who continue to seek

    after better quality goods at higher and more competitive prices which they are still
willing to pay for . According to Christenson (2009) these are the goods and services that

    traditionally helped them succeed.




•   How can disruptive innovation be a catalyst for change?


    Organizations that purposefully engage in disruptive innovation and succeed at it create

    competition and disrupt market trends for its competitors. It would be smart if these

    competitors, rather than seeing the strategy as a threat see it as a catalyst for them to

    change their products, marketing strategy or business model to increase their share of the

    market.


•   What are some historical as well as recent examples?


    Web 3.0


    Walmart


    Amazon


    The theatre industry and Netflix


    Britannica vs Wikipedia


    Brick and Mortar classrooms vs. e-learning.


    The airplane industry JetBlue vs American Airlines
Reference


Christensen, C. (2009) Disruptive Innovation. Retrieved July6, 2011 from
http://www.claytonchristensen.com/disruptive_innovation.html

Christensen C. M., C. W Johnson, & M. B. Horn. (2008). Disrupting Class: How
Disruptive Innovation Will Change the Way the World Learns. New York: McGraw-Hill.

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The concept of disruptive innovation

  • 1. What is disruptive innovation? According to Christensen (2009), disruptive innovation refers to any initiative that allows new clienteles to have access to a new product or service that historically was only accessible to consumers with lots of money or specialized skills. It also describes the process by which this product or service takes root initially in simple applications at the bottom of the market and then relentlessly moves “up market” and eventually displacing established competitors. According to Christensen,disruptive innovation takes the form of: lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics. How does it come about? Disruptive innovation happens as market leaders recognize the major shifts in the needs of the new consumers and pays attention to them. Needs such as dissatisfaction with services; products that are no longer meeting their needs; overpricing, and useful but complicated products. The new open market and the infusion of technology that has given the consumer a voice has also propelled the disruption. • What is sustaining innovation? Sustaining innovation as the name suggests are those activities that companies continue to engage in as they sustain the needs of their traditional consumers who continue to seek after better quality goods at higher and more competitive prices which they are still
  • 2. willing to pay for . According to Christenson (2009) these are the goods and services that traditionally helped them succeed. • How can disruptive innovation be a catalyst for change? Organizations that purposefully engage in disruptive innovation and succeed at it create competition and disrupt market trends for its competitors. It would be smart if these competitors, rather than seeing the strategy as a threat see it as a catalyst for them to change their products, marketing strategy or business model to increase their share of the market. • What are some historical as well as recent examples? Web 3.0 Walmart Amazon The theatre industry and Netflix Britannica vs Wikipedia Brick and Mortar classrooms vs. e-learning. The airplane industry JetBlue vs American Airlines
  • 3. Reference Christensen, C. (2009) Disruptive Innovation. Retrieved July6, 2011 from http://www.claytonchristensen.com/disruptive_innovation.html Christensen C. M., C. W Johnson, & M. B. Horn. (2008). Disrupting Class: How Disruptive Innovation Will Change the Way the World Learns. New York: McGraw-Hill.