Disruptive Innovation is an innovation which improves a product or service in ways that the market does not expect. Typically it starts with a low price – low performance product/service for a small customer segment but grows over time to capture more and more demand from incumbent players.
Examples of disruptive innovation are digital photography (displacing chemical photography), Wikipedia (displacing traditional encyclopaedias) and LEDs (displacing the traditional light bulb).
The term Disruptive Innovation was coined by Clayton M. Christensen, professor at Harvard Business School. He argues that disruptive innovations can hurt successful, well managed companies that are responsive to their customers and have excellent research and development. These companies tend to ignore the markets most susceptible to disruptive innovations. These markets have very tight profit margins and are too small to provide a good growth rate to an established (sizeable) firm.
Disruptive Innovation is the opposite to Sustaining Innovation, whereby improvements in the product or service are implemented gradually over time. Given it’s counter-intuitive nature (the disruptive innovation is often a competitor to the existing offering) it is difficult for a business to commit resources to both and retain or even grow their customer base.
Our service helps clients to develop a plan for disruptive innovation (in addition to sustaining innovations).
It consists of two phases –
Phase 1: introduction to the Disruptive Innovation theory and the application of it using the Disruptive Innovation Simulation as published by Harvard Business Publications.
Phase 2: application to your business and development of a Disruptive Innovation action plan.
This service is provided by René Moolenaar who teaches Disruptive Innovation at the Business & Management School of the University of Sussex.
Please contact René Moolenaar for more information.
More information about Disruptive Innovation can be found on www.claytonchristensen.com/key-concepts/