He describes the term further in his book The Innovator's Dilemma. ![]() The article is aimed at both management executives who make the funding or purchasing decisions in companies, as well as the research community, which is largely responsible for introducing the disruptive vector to the consumer market. Christensen and introduced in his 1995 article Disruptive Technologies: Catching the Wave, which he cowrote with Joseph Bower. The term disruptive technologies was coined by Clayton M. 6 A proactive approach to disruptive innovation.1.1 What is (isn't) disruptive innovation.Through identifying and analyzing systems for possible points of intervention, one can then design changes focused on disruptive interventions. īeyond business and economics disruptive innovations can also be considered to disrupt complex systems, including economic and business-related aspects. A disruptive process can take longer to develop than by the conventional approach and the risk associated to it is higher than the other more incremental, architectural or evolutionary forms of innovations, but once it is deployed in the market, it achieves a much faster penetration and higher degree of impact on the established markets. Small teams are more likely to create disruptive innovations than large teams. The business environment of market leaders does not allow them to pursue disruptive innovations when they first arise, because they are not profitable enough at first and because their development can take scarce resources away from sustaining innovations (which are needed to compete against current competition). The mass-produced automobile was a disruptive innovation, because it changed the transportation market, whereas the first thirty years of automobiles did not.ĭisruptive innovations tend to be produced by outsiders and entrepreneurs in startups, rather than existing market-leading companies. The market for transportation essentially remained intact until the debut of the lower-priced Ford Model T in 1908. For example, the first automobiles in the late 19th century were not a disruptive innovation, because early automobiles were expensive luxury items that did not disrupt the market for horse-drawn vehicles. Not all innovations are disruptive, even if they are revolutionary. Their work was featured as the cover of the February 2019 issue of Nature and was selected as the Altmetric 100 most-discussed work in 2019. Evans generalized this term to identify disruptive science and technological advances from more than 65 million papers, patents and software products that span the period 1954–2014. The concept was developed by the American academic Clayton Christensen and his collaborators beginning in 1995, and has been called the most influential business idea of the early 21st century. ![]() In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances. It may be either: Evolutionary An innovation that improves a product in an existing market in ways that customers are expecting (e.g., fuel injection for gasoline engines, which displaced carburetors.) Revolutionary (discontinuous but sustaining) An innovation that is unexpected, but nevertheless does not affect existing markets (e.g., the first automobiles in the late 19th century, which were expensive luxury items, and as such very few were sold)ĭisruptive An innovation that creates a new market or enters at the bottom of an existing market by providing a different set of values, which ultimately (and unexpectedly) overtakes incumbents (e.g., the lower-priced, affordable Ford Model T, which displaced horse-drawn carriages) Sustaining An innovation that does not significantly affect existing markets. An 1880 penny-farthing (left), and a 1886 Rover safety bicycle with gearing Christensen's Types of Innovation
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