Scribd
Upload
28 views12 pages

Disruptive Innovation

This document provides an overview of disruptive innovation by discussing key concepts like Clayton Christensen's theory, characteristics of disruptive innovations, challenges incumbents may face, and strategies for disruptive innovation. Examples like Uber are analyzed to distinguish disruptive versus sustaining innovations. The future of disruption is noted to involve industry transformation through emerging technologies and vigilance in adapting to changes.

Uploaded by

Arghadeep Hazra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
28 views12 pages

Disruptive Innovation

This document provides an overview of disruptive innovation by discussing key concepts like Clayton Christensen's theory, characteristics of disruptive innovations, challenges incumbents may face, and strategies for disruptive innovation. Examples like Uber are analyzed to distinguish disruptive versus sustaining innovations. The future of disruption is noted to involve industry transformation through emerging technologies and vigilance in adapting to changes.

Uploaded by

Arghadeep Hazra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 12

Introduction to Disruptive

Innovation

Dr. Kalpit Sharma


Agenda
● Introduction to Disruptive Innovation
● The Theory of Disruptive Innovation
● Misconceptions and Clarifications
● Characteristics of Disruptive Innovation
● Analyzing Uber's Case
● Strategies for Disruptive Innovation
● Theory Evolution and Insights
● Differentiating Disruptive and Sustaining Innovations
● Challenges and Pitfalls
● The Future of Disruptive Innovation
Introduction to Disruptive Innovation
Definition, Market Redefinition

● Redefining Markets: Disruptive innovation reshapes markets by introducing simplicity, convenience,


accessibility, or affordability, often challenging the status quo and established norms, and creating
new value propositions.
● Overlooked by Established Players: Established market leaders may overlook disruptive innovations
initially, as they often target different initial markets or customer segments that are not aligned with
the incumbents' current business focus.
● Market Leader Displacement: Over time, disruptive innovations can lead to the displacement of
market leaders as their offerings become overshadowed by the new, innovative solutions brought
forth by disruptors.
● Transformation of Markets: Not every innovation is disruptive; true disruption fundamentally
transforms a market, redefining its structure, rules, and value proposition, often to the benefit of
underserved or overlooked consumer segments.
● Encouraging Rethinking: Disruptive innovation encourages companies to rethink their strategies and
customer focus, fostering a culture of adaptability and a commitment to meeting evolving market
needs.
The Theory of Disruptive Innovation

Clayton Christensen, Small Companies vs Incumbents

● Clayton Christensen's Theory: Introduced by Clayton Christensen in 1995, this theory emphasizes
how small companies can challenge incumbents by entering at low-end or new market footholds,
gradually making inroads and disrupting existing industry dynamics.
● Ignored Disruptors: Incumbents may ignore disruptors initially due to their focus on higher profit
margins, failing to recognize the potential long-term impact of disruptive innovations in reshaping
market dynamics.
● Disruptor Evolution: Over time, disruptors improve and move upmarket, posing an increasing threat
to incumbents and reshaping the competitive landscape within the industry.
● Predictive Tool: The theory of disruptive innovation is a valuable tool for predicting industry changes
and forecasting the potential impact of new entrants on existing market structures.
Misconceptions and Clarifications

Technology Change, Business Impact

● Beyond Technology Change: Disruptive innovation encompasses more than just technological
advancements, and its impact extends to the broader redefinition of business models, market
structures, and consumer behavior.
● Business Model Impact: It's not solely about innovation but the business model and market impact,
emphasizing the transformative influence of disruptive innovations on industry dynamics and
competitive landscapes.
● Mislabeling of Startups: Not every successful startup is a disruptor, and mislabeling emerging
ventures can lead to strategic missteps and misinterpretation of their potential market impact.
● Crafting Effective Responses: Understanding the true nature of disruption helps in crafting effective
responses to the changes and challenges posed by disruptive innovations, ensuring sustainable
business strategies and market positioning.
Characteristics of Disruptive Innovation

Underserved Markets, Simplicity, Business Model Innovation

● Targeting Underserved Markets: Disruptive innovation initially targets underserved or niche


markets, offering innovative solutions tailored to meet the unmet needs of specific consumer
segments.
● Simplicity and Accessibility: Disruptive innovations offer simpler, more convenient, or cheaper
products/services, enhancing accessibility and affordability for previously overlooked market
segments.
● Business Model Innovation: Disruptive innovation relies as much on business model innovation as
on product innovation, reshaping the dynamics of how value is created and delivered in the market.
● Gradual Market Advancement: Disruptive innovations gain a foothold in their initial markets and
then move upmarket, gradually expanding their influence and reshaping competitive dynamics
within the industry.
● Underestimated by Incumbents: Disruptive innovations are often underestimated or overlooked by
incumbents until it's too late, leading to significant market shifts and the emergence of new industry
leaders.
Analyzing Uber's Case

Disruptor or Not, Market Targeting

● Assessing Uber's Disruption: Uber is often cited as a disruptor, but its case does not fit the
classic disruptive innovation model as it targets an existing market with improved services
rather than underserved or new markets.
● Market Targeting Strategies: Uber leverages technology to improve service quality and
efficiency, representing a case of sustaining innovation within the taxi industry rather than a
disruptive transformation of the market.
● Reevaluation of Disruption: The analysis of Uber's case encourages a reevaluation of what
constitutes true disruption, highlighting the nuanced nature of industry transformations and
the varied approaches to market innovation.
Strategies for Disruptive Innovation

Recognizing Potential, Business Model Innovation, Agility

● Recognizing Potential: Identifying untapped or underserved markets with


the potential for disruptive innovation and growth. This requires in-depth
market analysis and an understanding of consumer needs and pain points.
● Business Model Innovation: Creating new and innovative business models
that fundamentally change how value is delivered to customers. This can
involve subscription-based models, sharing economies, or other non-
traditional approaches that revolutionize the industry.
● Agility: Maintaining flexibility and adaptability to respond quickly to market
feedback and changes. This involves iterative development, rapid
experimentation, and a willingness to pivot based on real-time data and
insights.
Theory Evolution and Insights

Market Dynamics, Business Model Innovation, Leadership Vision

● Theory Evolution: The theory of disruptive innovation has continuously evolved to adapt to
changing market dynamics, recognizing the interplay of technology, consumer behavior, and
industry shifts. This evolution emphasizes the importance of business model innovation and
the need for continuous refinement of the concept.
● Business Model Innovation: The emphasis on business model innovation highlights the
transformative power of redefining how value is delivered to customers. This goes beyond
product innovation and focuses on creating new pathways for accessing and experiencing
products or services.
● Leadership Vision: Leadership plays a critical role in navigating disruption and driving
innovation. Visionary leaders can anticipate market shifts, foster a culture of experimentation,
and inspire the organization to embrace change and continuous improvement.
Differentiating Disruptive and Sustaining Innovations

Improving vs Creating, Response Strategies

● Improving vs Creating: Sustaining innovations focus on improving existing


products or services for current customers, whereas disruptive innovations create
entirely new markets or value networks, often targeting underserved or overlooked
consumer segments.
● Response Strategies: The response to each type of innovation requires distinct
strategies. Sustaining innovations call for incremental improvements and customer
feedback integration. Disruptive innovations demand agility, market repositioning,
and the creation of new value propositions.
Challenges and Pitfalls

Misidentifying, Overlooking, Organizational Inertia

● Misidentifying: Incorrectly categorizing innovations as disruptive or sustaining can lead to misaligned


strategies and investment priorities, resulting in missed opportunities or suboptimal resource
allocation.
● Overlooking: Failing to recognize emerging disruptors in adjacent or overlooked markets can lead to
missed competitive threats and the potential for market displacement over time.
● Organizational Inertia: Resistance to change and inertia within organizations can impede the
adoption of disruptive innovations and hinder the ability to adapt to evolving market dynamics.
The Future of Disruptive Innovation

Industry Transformation, Emerging Sectors, Vigilance

● Industry Transformation: Disruptive innovation continues to be a key driver of


industry transformation, reshaping traditional business models and consumer
experiences across various sectors, from technology to healthcare.
● Emerging Sectors: The impact of disruptive innovation will play a significant role in
emerging sectors such as AI, and sustainable technologies, where new opportunities
for market redefinition and value creation are emerging.
● Vigilance: Established players must maintain vigilance and adaptability to navigate
the evolving landscape of disruptive innovation, recognizing and leveraging emerging
trends and opportunities while driving strategic planning for sustainable
competitiveness.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy