Disruptive innovation
What Is Disruptive Innovation?
Disruptive innovation, refers to the innovation that transforms expensive or highly sophisticated products or services—previously accessible to a high-end or more-skilled segment of consumers—to those that are more affordable and accessible to a broader population. This transformation disrupts the market by displacing long-standing, established competitors.
Among the several “disruptive” technologies that have grabbed headlines recently, there are many follow up innovation that we can expect to see truly impacting businesses and consumers in 2022 and beyond, therefore our prime target will be to identify, analyze and elaborate, in thejournalbiz.com
KEY TAKEAWAYS;
– Disruptive innovation refers to innovations and technologies that make expensive or sophisticated products and services accessible and more affordable to a broader market.
– Disruptive innovation refers to the use of technology that upsets a structure, as opposed to “disruptive technology”, which refers to the technology itself.
– Disruptive innovation requires enabling technology, an innovative business model, and a coherent value network.
– Sustaining innovation is the process of innovating to improving
Disruptive Innovation key points
Disruptive innovation is not the process of improving or enhancing products for the same target group; rather, it involves the technologies used to make them easy to use and available to the larger, non-targeted market. An example of disruptive innovation is the introduction of digital music downloads, which have, by far, replaced compact discs (CDs).
Clayton Christensen first coined the idea of disruptive innovation in the book ‘The Innovator’s Solution’ in 1997.
Clayton indicated that there were two types of technologies that businesses dealt with. Sustainable technologies allowing businesses to incrementally improve its operations on a predictable time frame.
and
Disruptive technologies, the way they are integrated—the disruptive innovations—were less easy to plan for and potentially more devastating to companies that did not pay enough attention to them.
Case studies as exhibit of disruptive innovation
Companies such as;
· Amazon,(AMZN)
· Google (GOOGL)
· Tesla (TSLA)
· Apple ( AAPL)
And
· Facebook / META (FB)… are examples of companies that have heavily focused on the internet as a disruptive technology.
The internet has become so ingrained in the modern world that the companies that failed to integrate disruptive innovation into their business models have been pushed aside.
Even during a pandemic, the tech industry has continued to evolve. Some changes—such as the explosion of e-commerce and the increasing use of smart assistants—have been driven by Covid-19’s effect on everyday living. Others, such as 5G, Electric Vehicles & 3D have been on the horizon for some time, but only now we are seeing more widespread implementation.
