Question

What is disruptive innovation?

Answer 1

Disruptive innovation refers to new products or technologies that create new markets and disrupt existing ones, like how personal computers supplanted mainframes. Examples include digital photography, cloud storage, and ride-sharing services. Emerging technologies like 3D printing and blockchain may cause future disruptions.

Step-by-step explanation:

Disruptive innovation is a term used to describe a process where a new product or technology creates a new market and value network, which eventually disrupts an existing market and value network, displacing established market leaders and alliances.

The personal computer, for example, started as a product for hobbyists but evolved to the point where it virtually replaced mainframe and minicomputers in many applications. Another example is the rapid shift from film-based to digital photography, which left companies that could not adapt to the new technology behind.

Disruptive innovations such as cloud-based storage services like Drive and iCloud have reduced the need for physical storage devices, while ride-sharing services like Uber and Lyft have significantly disrupted the taxi and limousine industry. Looking ahead, technologies like blockchain, 3D printing, and augmented reality are poised to cause similar disruptions in various industries.

These examples illustrate how innovative products can destabilize the status quo, leading to rapid market changes and new opportunities for growth and profit for those who lead the disruption.

Answer 2

Disruptive innovation refers to the introduction of a groundbreaking product or service that significantly alters existing markets, often replacing established products or creating entirely new ones.

Step-by-step explanation:

Disruptive innovation, a concept coined by Harvard professor Clayton Christensen, describes the process by which new technologies or business models disrupt and transform existing industries. Unlike sustaining innovations that improve existing products, disruptive innovations introduce a novel approach, typically with lower cost or greater simplicity, challenging traditional market leaders. This can lead to the displacement of established products or services as consumers adopt the innovative solution.

A classic example is the transition from traditional taxis to ride-sharing services like Uber. The disruptive innovation of a technology-enabled platform fundamentally changed the transportation industry, creating a shift in consumer behavior. Understanding disruptive innovation is crucial for businesses to navigate evolving markets and remain competitive in a rapidly changing landscape.