Disruptive Innovation Theory



Disruptive Innovation Theory

Introduction

Disruptive innovation is a technology or say an innovation that creates a trend or creates a new value network and market and somehow break into and disrupts the existing market and value network (which is over a few decades), replacing/displacing an earlier technology. It changes the market the way the market has not expected from improve service or product, first designing a different and unique consumer and later lowering the price of the product just launched in the existing market. Whereas sustaining innovation, in contrast, does not create new values or markets but rather improves the existing ones with a better value, allowing the companies to compete against each others.

Into two types, mainstream studies are divided according to technological innovations, but in history for different stages, for different terminologies. Technologies can be classifies into two general classes:

Discontinuous, revolutionary, breakthrough, emergent, radical, or step function technologies.

Continuous, evolutionary, incremental or 'nuts and bolts' technologies.

Discussions

The disruptive innovation models can help you look forward, not just backward by Scott D. Anthony some doubters claim that the disruptive innovation models only provide insight in hindsight. It is believed that, the disruptive innovation models can help to illuminate market trends well before they reach the mainstream, allowing analysts and strategists to interpret even the faintest signals with far greater confidence.

While the future can't be perfectly predicted, there are a number of developments with high disruptive potential that we anticipate will begin having meaningful impact in the near future.

Air taxis begin to soar, but high-end airlines falter

We have been touting the disruptive potential of air taxis for several years. A host of manufacturers are getting close to commercializing planes that could enable the air taxi revolution, but service providers still must address vexing business model issues.

A number of manufacturers ...