Disruptive Innovation Vs. Sustaining Innovation

What Is Disruptive Innovation?

Disruptive innovators was a term coined in the 1997 book, “The Innovator’s Dilemma” by Clayton Christensen to explain how new products or services make their way to the market. Initially, these novel products aim to serve or target the market segments, which are considered “underserved” or “ignored“. Technology innovations frequently change the competitive setting by disrupting existing market players who innovate new products with different features than they were offering before. Innovations that shake existing practices set through technology improvement, consumer behaviour change or market dynamics shift are referred to as disruptive innovations. The awareness of the concept of disruptive innovation should be of a top priority of the business that aims not to be left behind in a time-bound and frequently new market environment....

Understanding Disruptive Innovation Requirements

Considering what makes a disruptive innovation different from the other types of innovations means we have to focus on the elements that make it unique. Disruptive innovation, different from both sustaining and extended innovations, is about breaking bounds and challenging traditional industries. And thus these new technologies not only weaken the old ways of life but also the traditional ways of doing business. They are without a doubt a menace to market incumbents as well as they present opportunities for them. The most important thing in disruptive innovation is that it utilizes the recent technological breakthroughs that create new value proposals or transform the old ones. This further drives companies to adopt new technologies or they may face extinction. The understanding of the essentiality of adaptive innovation in interfacing with the future through strategic planning and acceptance of change is one of the most important things. It involves a vision for the future of the market, innovation search, and timely creation of a niche for the business. By the understanding and adoption of disruptive innovation tenets, the firms will be strong enough to occupy a strategic space in the world of cut-throat business....

Disruptive Innovation Vs. Sustaining Innovation

The crucial aspect of impactful strategic planning is to acquire the ability to discern the total number of development breakthroughs and innovative opportunities to ensure successful competitive operations in the field. On the other hand, the innovation in this exciting category can be a new product or service to target clients with new needs, while in sustaining one is employed to form new or to change the existing markets. The motto is to sustain innovation that will ensure a company caters to the present need of the existing client base yet they stand ahead of the competitors. Disruptive innovations have leveraged the breakdown of the previously powerful system....

Disruptive Innovation Vs. Disruptive Technology

Disruptive innovation and disruptive technology are synonymous terms which do not entirely mean the same. Disruptive innovation implies the process that involves the establishing of new products and services which overturn the markets that exist at the moment while disruptive technology is that technology that enables these to occur. The prototypical evidence of disruptive innovations is manifested through the disruption of video rental industry by Netflix and disruption of hospitality sphere by Airbnb. While the classical approach such as blockchain, Artificial Intelligence and 3D printing can create disruptive innovations in sectors, they also have the potential to disrupt multiple industries at the same time....

4 Tips for Understanding the Theory of Disruptive Innovation

The concept of disruptive innovation can be better realized by you following these tips;...

Impact of Disruptive Innovation

Industry Dynamics: Disruptive innovations can reshape entire industries by introducing new products, services, or business models. This often leads to the creation of new markets and the disruption of existing ones. Market Competition: Disruptive innovations intensify competition by challenging established players with novel approaches. This drives companies to enhance their offerings, lower prices, and improve customer experiences to maintain their market position. Business Model Adaptation: Companies must adapt their business models to effectively respond to disruptive innovation. This may involve redefining value propositions, exploring new revenue streams, or leveraging partnerships to stay relevant in evolving markets. Consumer Impact: Disruptive innovations can empower consumers by providing them with more choices, improved affordability, and enhanced convenience. However, they may also disrupt established consumer preferences and behavior patterns. Employment Dynamics: While disruptive innovation can create new job opportunities in emerging sectors, it may also lead to job displacement in traditional industries. Workers and organizations must navigate skill transitions and workforce realignment to mitigate adverse effects. Technological Progression: Disruptive innovations often catalyze technological advancements by driving research, development, and adoption of new technologies. This fosters innovation ecosystems and contributes to societal progress....

Conclusion: Disruptive Innovation in Product Management

Through knowing it’s necessity, differences, it is reasonable, a business can take proactive steps by engaging in identifying and capitalizing on the disruptive opportunities in production management. An innovation culture, agility adoption and historical examples application are the most necessary keynotes to successfully manage the challenges of disruptive innovation in this era of markets fast-changing nature....

FAQ’s: Disruptive Innovation in Product Management

1. What should be called disruptive innovations?...