Disruptive innovation, originally coined by Clayton Christensen, has been often misrepresented in common parlance. It’s not about breakthrough technologies that make good products better, but about innovations that transform expensive, complicated products into ones that are simpler, more affordable, and accessible to a larger population. Such innovations typically start in niche markets, not mainstream ones.
Disruptive innovations are not always successful. They require a separate organisational unit to succeed due to the different values required for disruptive innovation compared to sustaining innovation. Uber, for instance, is often mislabelled as a disruptive innovation. It did not originate in a low-end or new-market foothold and its market was not underserved. Instead, Uber is more accurately described as a sustaining innovation, improving service quality in an existing market.
Disruptive innovation theory is useful for predicting which innovations will succeed. However, it’s not a recipe for achieving success. It can guide strategic choices, but it doesn’t guarantee results. Misunderstanding and misapplying the theory can lead to competitive mistakes and missed opportunities.
Therefore, it’s essential to understand the nuances of disruptive innovation theory to apply it effectively. It’s not about the size or nature of the innovation, but about its impact on the market and business models. By appreciating these subtleties, businesses can better position themselves for long-term success.
Go to source article: https://hbr.org/2015/12/what-is-disruptive-innovation