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DESCRIPTION
Disruptive Innovation, a concept pioneered by Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
In his book, "The Innovator's Dilemma," Christensen showed that time and again almost all the organizations that have "died" or been displaced from their industries could see the disruption coming, but did nothing until it was too late.
Most good companies are on a path of sustaining innovations by catering to their most profitable customers. This leaves them open for disruptive technologies. This is because the established companies are designed to maximize profits through sustaining innovations.
When Disruptive Innovations emerge, established companies are unable to react quickly enough. They almost always go up-market rather than to defend these new or low-end markets, and ultimately the disruptive innovation improves, steals more market share, and replaces them.
Companies tend to innovate faster than their customers' needs evolve. Thus, they produce offerings too sophisticated, too expensive, and too complicated for many customers.
This presentation delves into the core elements of Disruptive Innovation, breaking down the model into digestible components. It highlights how incumbents often fail to respond effectively to disruptive threats, despite having the necessary capabilities. The PPT provides a nuanced understanding of why established companies are unable to defend against low-end market entrants, ultimately leading to their displacement.
The primer also outlines the limitations of the Disruptive Innovation model, emphasizing the need for a separate strategy process and a deep understanding of customer needs. It includes real-world examples of disrupted markets, offering valuable insights for executives aiming to navigate and leverage disruptive forces in their industries.
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Source: Best Practices in Innovation, Disruptive Innovation, Clayton Christensen PowerPoint Slides: Disruptive Innovation Primer PowerPoint (PPT) Presentation, LearnPPT Consulting
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Disruption Frameworks
This bundle contains 4 total documents. See all the documents to the right.
Innovation Management Consulting Frameworks Disruption Business Framework PowerPoint Diagrams Innovation Culture Strategy Frameworks Strategy Development Artificial Intelligence Ideation Consulting Training Digital Transformation Budgeting & Forecasting Problem Solving Scenario Planning Business Model Design Business Model Innovation Corporate Culture Maturity Model Value Proposition Jobs-to-Be-Done Chief Strategy Officer Company Analysis Internet of Things Costing Agile Team Management Natural Language Processing Fourth Industrial Revolution Robotic Process Automation Creativity Service Design Customer Experience Gap Analysis Product Strategy
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