Disruptive Innovation Technology
Table of Contents
Intellectual History and Future Paths: 2
Disruptive Innovation Changes Education: 2
The disruptive innovation model 2
Limitations and implications: 3
A Disruptive Innovation Technologies are innovations that help to create new markets and eventually go on to disrupt an existing market and value networks, displacing an earlier technology An example of a modern disruptive innovation technology is the Internet, which significantly altered the way companies did business and which negatively impacted companies that were unwilling to adopt it.
Disruptive technologies exhibit an initially worse performance profile on the dimension valued by mainstream consumers, so the gains to trade with incumbents required for cooperative commercialization may not exist. If deployed, however, they may exhibit a favorable trajectory of improvement. Under such a circumstance, the commercialization partner may have little financial incentive early on to develop the innovation in-3 house or access it via contractual means, as combining it with their existing activities is costly. However, should a potentially disruptive technology prove to be valuable, these incentives may change? Thus, in contrast to the main predictions of existing analyses that find incumbent firm market leadership routinely replaced in the face of disruptive innovation by entrepreneurs, cooperative commercialization which preserves incumbent market leadership may still be a long-term outcome.
Intellectual History and Future Paths:
While the concept of disruptive innovation is widely used in practice, empirical management research has not kept pace. They aim to reinvigorate such research on disruption with a newly unified theoretical base and the seeds of a research program.
Disruptive Innovation Changes Education:
HBS professor Clayton M. Christensen, who developed the theory of disruptive innovation, joins colleagues Michael B. Horn and Curtis W. Johnson to advocate for ways in which ideas around innovation can spur much-needed improvements in public education. How Disruptive Innovation Will Change the Way the World Learns. Key concepts include: As an industry, education has certain elements that have made the market difficult to penetrate and lasting reform hard to come by. As a general rule, the most promising areas for innovation are pockets or areas that appear unattractive or inconsequential to industry incumbents and where there are people who would like to do something but cannot access the available offering. To improve education as an industry, businesspeople might consider investing in technological platforms that will allow for robust educational user networks to emerge.
The disruptive innovation model
This diagram contrasts product performance trajectories (the red lines showing how products or services improve over time) with customer demand trajectories (the blue lines showing customer’s willingness to pay for performance). As incumbent companies introduce higher quality products or services (upper red line) to satisfy the high end of the market (where profitability is highest), they overshoot the needs of low-end customers and many mainstream customers. This leaves an opening for entrants to find footholds in the less profitable segments that incumbents are neglecting. Entrants on a disruptive trajectory (lower red line) improve the performance of their offerings and move upmarket (where profitability is highest for them too) and challenge the dominance of the incumbents.
A complementary approach is to examine the inhibitors of disruptive innovation and investigate their interrelationship and interdependence. The study is based on an extensive review of literature available and examines both internal and external inhibiting factors to develop a conceptual model of disruptive innovation capabilities.
Limitations and implications:
It is proposed a conceptual interrelationship model of innovation inhibitors as a basis for determining and improving a company’s disruptive innovation capability. It is suggested that in addition to the theory presented and further empirical research studies are carried out to validate the key inhibitors of our conceptual model, their interrelationship and interdependence, and the impact on disruptive innovation development. Disruption theory does not, and never will, explain everything about innovation specifically or business success generally. Far too many other forces are in play, each of which will reward further study. Integrating them all into a comprehensive theory of business success is an ambitious goal, one we are unlikely to attain anytime soon.
Wharton on Managing Emerging Technologies
Disruptive Innovation by Wharton Faculty