Professor Clay Christensen summarizes Disruptive Innovation

http://www.12manage.com/video.asp?TB=christensen_disruptive_innovation&S=12&RS=vn&AC=up&EM=umachandran_k%40hotmail.com

Professor Clay Christensen summarizes Disruptive Innovation

http://www.12manage.com/video.asp?TB=christensen_disruptive_innovation&S=12&RS=vn&AC=up&EM=umachandran_k%40hotmail.com

A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leaders and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995. More recent sources also include "significant societal impact" as an aspect of disruptive innovation.

Disruptive innovations tend to be produced by outsiders. The business environment of market leaders does not allow them to pursue disruption 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). 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 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.

https://en.wikipedia.org/wiki/Disruptive_innovation

https://www.interaction-design.org/literature/book/the-encyclopedia-of-human-computer-interaction-2nd-ed/disruptive-innovation

http://www.fastcodesign.com/1665186/there-are-three-types-of-innovation-heres-how-to-manage-them

I can think of 3 disruptive innovations that nearly displaced an existing product & two services. The relatively old liquid ink fountain pen (made e.g. by Parker & Schaeffer) that I used to fill from a small jar. There are, now, a host of very nice elegant pens at low costs rendering the old pens undesirable.

Two services are suffering from a decline in the number of customers: the public post office & libraries (public or private). The IT technology has offered better alternatives to both of them.

I like to draw the attention of my dear RG colleagues that disruptive innovations will face troubles if they try to compete with very influential companies (such as those working in the energy sector). In the early 1980s & when I was living in England, a man from Wales extracted natural gas from his farm, filled it in a cylinder, and ran his car using it after few modifications. The man was described as "eccentric" & many sides worked upon "killing" his innovation in its infancy stage.

Dont forgget the electric typewritter machines, the fax, the portable messenger, and other innovations that were cannibaluzed by the new technologies.

The dimensions of competitions in the marketplaces have changed. Technologies, start-ups are entering into the market in very less lead time and prompt services are being delivered at the door step. This is a proactive league wherein industries have to compete with the speed of the light to sustain in the market. The creative minds have to be a forerunner in their inventions, plan ahead of time to survive the future. Leading disruptive innovation involves determining which small steps will have the greatest impact. A disruptive innovation can be looked upon as a distinguished pro-active approach, which not only enhances an existing business model, but also focuses on the emergence of a completely new technology for a new product or a service, which is not served till date. Such innovations can cause a change in the market, by creating demand and new consumers which has been recognized earlier. Considering these facts, it can be concluded that disruptive innovation can be applied in product, service and people (consumers).

Dear @Krishnan, there is fine example of Disruptive innovation in education. Finer article is attached.

Disruptive Innovation in Higher Education:The Professional Doctorate

"The new Doctor of Business Administration [DBA] Program at a recognized US University is a disruptive innovation in the field of doctoral education. It is meeting the demand for professional doctoral education as a next step in individual professional development. It is disruptive in several ways..."

Article Disruptive Innovation in Higher Education: The Professional Doctorate

Yes and no or no and yes, because the people will be or not to be the innovative developer for production and service for his themselves. Allow me to be the time required: All of you I wish a happy Christmas and a Happy New Year 2016!

By contrast, disruptive innovations don’t, by traditional measures, meet existing customers’ needs as well as currently available products or services. They may lack certain features or capabilities of the established goods, for example. However, they are typically simpler, more convenient, and less expensive, so they appeal to new or less-demanding customers. Southwest Airlines’ low-cost, no-frills flights were a disruptive service innovation that initially attracted leisure travelers whose alternatives were to pay through the nose or not to fly at all. The company rapidly stole market share from established carriers while also bringing new customers to air travel. Personal computers were a disruptive product innovation because, while they were less powerful than mainframes, they quickly found a huge unserved market for their affordable, if limited, capabilities.

Disruptive innovations have had a major impact on industry structures, from travel to computer retailing to communications, and have often given rise to social change in the process. But the social changes caused by disruptive innovations are largely unintended; they are simply the by-products of pursuing a business opportunity. With catalytic innovations, however, social change is the primary objective.

Dear Krishnan Umachandran

Greetings,

Please find the attached file many  information  of innovation you can useful for you and related for your topic ,

Best Regards,

It is good paper dear @Faris. Disruptive Innovations and the Greying Market!

The following link leads to database of more than 700 articles regarding disruptive innovation and its applications.

https://www.researchgate.net/publicliterature.PublicLiterature.search.html?type=keyword&search-keyword=+Disruptive+Innovations

Krishnan, Hello. From my experience I consider disruptive innovation can be applied to products and services, but not to people. There are theoretical framework with well argued hypotheses about disruptive innovation applied to products and services, it is the example of P & G with its method of connect and develop.The  Persons are not innovate, people are essentially agents of change, agents that change or promote to change.

Moreover, the markets of the century, for the products of planned obsolescence, also adds to this the fact that every human being has a function of "Growing Dissatisfaction" that leads to change their "stuff" for new things, even these ARE funcinando well. I think that some call Moda. The problem I see has to do with the cultural codes of consumers and how these are affected by the innovative features that gives innovation technologies.

New age iT products companies make a lot of money from selling overpriced & overrated products to the gullible who fall for the unrealistic hype surrounding their brand. People are forced (caught into the web unaware) to download some free ringtones, songs, tunes, videos, apps etc., The contact database gets easily accessible to them. The organization is now in direct contact with the user or the potential customer.

Everyone now knows (example.Apple)  the opening of  new stores, wait to date the inauguration and fall into the gullible queue for hours then the staff work them up into a frenzy prior to letting them into the store. Any of these products have a short life and a newer versions are already on the pipeline.

Countries like India are getting exploited, Money gets to be not justifiably used by people over priorities but prepares them to stimulate an economic activity and consolidating junk.

Danil Dintsis                                                              18 hours ago

Unfortunately it happens often!

The Organizational Change management being implemented in a company/project is the right way to minimize this kind of threats.

Disruptive innovations have disrupted products and services but it is beyond my imagination how it can disrupt people!

Can Disruptive innovation be applied in Product, Service and People ?

From my understanding, disruptive innovation so far only applied on products & services like from mainframe to PC computer (product), from traditional ATM / service counter to online banking services (service).  From people perspective think disruptive innovation do impact some categories of people e.g. supplier / provider, employee & customer.  For an example, disruptive innovation requires new group of employees (or employees with different unique exposure) to think outside the box to develop or deliver the disruptive products or services & might require different types of supplier / provider of raw materials.  Also disruptive innovation can target to may be low end customer market first before replacing the mainstream customer market later etc.

Does Disruptive innovation bring in quicker obsolete products and services ?

Think "quicker" is subjective & depending on factors like the availability / discovery of technologies behind those innovated products, compelling reason to innovate, is there ROI to rollout those innovative products at the right time at the right price, purchasing power etc.  E.g. from typewriter to word processing software which is longer / slower (1800s to 1980s) vs floppy disk to thumb drive which is shorter / faster (1970s to 2000s).

Do people really know before buying these products or is it inducement to try new, knowing well that a newer version will come in quick ?

Think people / customer generally might not know what will be the future new disruptive / innovative products before they purchase / start using a particular product.  However, for those customers that have used the products for a while or for those working in R&D, they might have some ideas / innovative characteristics wishlist that they might want to see in future design.

The literature indicates that customer involvement tends to prefer incremental innovations (van der Panne et al., 2003), while radical or disruptive innovation may face resistance from customers (Christensen, 1997).

van der Panne, G., C. van Beers and A. Kleinknecht (2003) “Success and Failure in Innovation: A Literature Review,” International Journal of Innovation Management, vol. 7(3, September), p. 309-338.

Christensen, C.M. (1997) The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA, Harvard Business School Press.

In my view, which is based on both entrepreneurship theory (Schumpeter's) and resource-based theory it is interesting to study not just the result (that id disruptive innovation of product/services) but rather the entrepreneurial disruptive capability in creating disruptive innovations on the market. this capability is the capacity of creating changes rather catching, in provoking changes that can disrupt the market and mislead  competitors. So the issue is: what are the competences behind product/service disruptive innovation.

The disruptive products or services are inferior in performance to begin with bit are cheaper, therefore get entry into lower segment. However, as the performance increases, some incumbents adopt this while many others miss the bus and hence get disrupted. It affects people of all the three main streams; the buyers, the suppliers and the employees of the related industry but it cannot be applied on people.

26 Disruptive Tech Trends for the Rest of the Decade!

Obviously, this is not an exhaustive list of every technology and societal trend bringing about disruption on planet Earth. What follows thought definitely affects the evolution of digital Darwinism, the evolution of society and technology and its impact on behavior, expectations and customs...

https://www.linkedin.com/pulse/25-disruptive-technology-trends-2016-2019-brian-solis?trk=pulse-det-nav_art

The literature indicates that customer involvement tends to prefer incremental innovations (van der Panne et al., 2003), while radical or disruptive innovation may face resistance from customers (Christensen, 1997).

van der Panne, G., C. van Beers and A. Kleinknecht (2003) “Success and Failure in Innovation: A Literature Review,” International Journal of Innovation Management, vol. 7(3, September), p. 309-338.

Christensen, C.M. (1997) The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Boston, MA, Harvard Business School Press.

Dear Krishnan! You raised a painful subject, which is traditionally for human society. For various reasons (advertising, a passion for shopping, imitation, the desire to stand out ...), people often acquire the goods that are then not a little used in everyday life. Apparently, these habits are the property of the people. Wasting energy and money.

Viladimir you are very right, consumerism is fooling people. Today people could not resist the impulse to buy. It's easier than ever to spend money , thanks to mobile payment systems, credit cards and EMI or flex loans. Beware whether you tend to make impulse purchase and fall prey to retailers' tricks such as store smells, the music played etc., Try being patient and make yourself wait. Window shop and wait till emotions have cooled and thinking is more rational, else falling to sensual appeal and not to necessity is only going to add one more junk in your home.

Disruptive innovation does not make existing customer buy the product. It is generally inferior to begin with but has a potential to become superior. Products coming out of disruptive innovation go to the lower/new  segment of the market.

Disruptive innovation is more facilitated by rapid prototyping and 3D printing technologies.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://tampub.uta.fi/bitstream/handle/10024/84644/gradu06774.pdf%3Fsequence%3D1&ved=0ahUKEwj2u8qP_rPKAhVEI44KHXg9Bds4MhAWCC4wBg&usg=AFQjCNGN653-_WB2V0oi-xhCST0Bg6lTtg&sig2=KR1kcjlbvd_Owh7sTXJZaQ

Disruptive Innovation must be differentiated from Disruptive Technology. The later stops at R&D level whereas the former is more a market phenomenon in which people, also as customers, are involved. People are effected with disruptive innovation but they by themselves do not get disrupted.

Dear Krishnan: in relation to "disruptive" characteristics, I would like to refer to disruptive intelligence at an individual level, I mean, as a component of "human capital".

In some cases, determined business environments or cultures, individuals who possess this feature may -frequently- find troubles in getting a job, or in keeping a job thru time, because these persons may have some psychical characteristics that make them individuals not easily "adaptable" to a working environment (enterprise, office, etc.) as the "normality" of individuals would do; but not because lack of S&Q or intelligence.

Also, it may happen that these individuals are not easily comprehended or understood by their bosses or their peers, for instance, seeming "weird" or "nerd" employees, in terms of "social" requirements or capabilities.

Thus, I think that companies would be benefited by individuals with "irruptive intelligence" in key positions (in terms of increased productivity, better performance, creative solutions to new problems, etc.). To achieve that, the working environment should be capable to recognize individuals with these characteristics.

So, although Christensen refers to irruptive business or technologies, I think we must not forget that behind success businesses or ideas underlie persons with specific "human capital" endowments (or characteristics) that lead the companies to succeed, and this special kind of intelligence should be considered.

I hope my opinion helps,

Regards.

Federico

Yes dear Luis, as to continuously monitor competitive players will drop out of the market, while new and potentially disruptive technologies, developed by small firms make a in-way, that may not be readily apparent as competitors. A company has to be very expansive in thinking about possible competitors. Its the people who make the difference for the organization.

Innovation on printed paper recycling, a good one for office / educational institution resources

https://www.facebook.com/ScienceNaturePage/videos/765132843618976/

Few academic management theories have had as much influence in the business world as Clayton M. Christensen’s theory of disruptive innovation. But how well does the theory describe what actually happens in business?

How Useful Is the Theory of Disruptive Innovation?

http://sloanreview.mit.edu/article/how-useful-is-the-theory-of-disruptive-innovation/

Dear All.

When the Isrealites wanted solution so badly in order to get out of Egypt, a Disruptive SOLUTION packaged as MOSES was sent by God. This was a great disruption to the Egyptians, but a great solution to the Isrealites. When slavery in America had reached its horrific height, a Disruptive SOLUTION packaged as ABRAHAM LINCOLN was sent by Life. A great disruption to some whites and their black benefactors (See The Film: ROOTS), but a great solution to those blacks who are simple and gentle at heart. History is lined with many such events and the trend is still present today, only wearing a different mask.

Life brings us against dead ends and we need to be INNOVATIVE to surmount the walls. When the challenge is a run for dear life, an impromptu innovative method to

absolute escape is NEVER seen as disruptive. But when the innovative method is about a way of doing something, thus saving 60% of cost, time and energy, then it

becomes disruptive to existing methods. Disruption in this sense connotes INERTIA, STAGNANCY, RESISTANCE TO GROWTH and at worst PRIMITIVENESS.

I came to know about the phrase, Disruptive Innovation, around 2003 when I was trying to figure why the embassies in Nigeria, whom we notified about ECourier in 2001, behaved the way they behaved. Except for the Isrealis Embassy who sent documents of encouragement. In effect, the words Disruptive/Disruption are highly negative when paired with INNOVATION. Innovation is about life, it is about growth, it is about SOLUTION. These are not things we discuss from the comfort of our positions. WE NEED TO GO THERE, TO SEE TO PERSONS TRULY IN OF SOLUTION. Just like is said on Cable Network News (CNN): GO THERE.

One-Square-Meter, a CNN program, featured a documentary on NTU-Singapore, an academic envoronment comming up with a new setting for university and a new method for learning. I hope this Seeting/Method will not be termed DISRUTIVE.

Thanks All.

The emerging Li-fi technology is a low-cost alternative to radio-based wireless internet. The connection depends on the light traveling from the LEDs to a receiver, but doesn't require a line of sight —the light can bounce off walls and still be effective. The connection also can't penetrate through walls, could actually be a benefit for security, since wide-ranging Wi-Fi connections can be vulnerable to hackers.

http://www.theverge.com/2013/10/28/5038130/internet-of-light-scientists-achieve-10-gigabit-data-speeds-using-leds

To be disruptive, the innovation in product, service and people needs to change the "rules of the game" For instance, mobile devices, a disruptive innovation in its own right, has contributed to disruptive innovations in other products (e.g. added connectivity functions to traditional toys), services (e.g. virtualization of services to reduce the variation in quality that is normally associated with fickle human beings) and people (e.g. the quantified self movement and the related developments in smart watches and health monitoring devices). In a sense to self-manage our health and to data-mine our own personal databases.

Article The Quantified Self: Operationalizing the Quotidien

DISRUPTIVE INNOVATION

What Is Disruptive Innovation?

Clayton M. ChristensenMichael E. RaynorRory McDonald

FROM THE DECEMBER 2015 ISSUE

The theory of disruptive innovation, introduced in these pages in 1995, has proved to be a powerful way of thinking about innovation-driven growth. Many leaders of small, entrepreneurial companies praise it as their guiding star; so do many executives at large, well-established organizations, including Intel, Southern New Hampshire University, and Salesforce.com.

Unfortunately, disruption theory is in danger of becoming a victim of its own success. Despite broad dissemination, the theory’s core concepts have been widely misunderstood and its basic tenets frequently misapplied. Furthermore, essential refinements in the theory over the past 20 years appear to have been overshadowed by the popularity of the initial formulation. As a result, the theory is sometimes criticized for shortcomings that have already been addressed.

There’s another troubling concern: In our experience, too many people who speak of “disruption” have not read a serious book or article on the subject. Too frequently, they use the term loosely to invoke the concept of innovation in support of whatever it is they wish to do. Many researchers, writers, and consultants use “disruptive innovation” to describe any situation in which an industry is shaken up and previously successful incumbents stumble. But that’s much too broad a usage.

https://hbr.org/2015/12/what-is-disruptive-innovation

Regards!

Disruption is a new way of thinking and looking at the possibility of much wider area of application of technology, products and services. Disruptive innovation and technologies are redefining the S&T based commercial activities through transforming a product traditionally expensive, complicated and inaccessible to one that is affordable, uncomplicated and available to a much larger population thus offering commercial ventures of different scale with all kinds of opportunities.

As inspired by reference mentioned by dear @Adriana, let me bring this very related article mentioned in this contribution.

Disruptive Technologies: Catching the Wave

One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technologies or markets change. Why is it that established companies invest aggressively–and successfully–in the technologies necessary to retain their current customers but then fail to make the technological investments that customers of the future will demand? The fundamental reason is that leading companies succumb to one of the most popular, and valuable, management dogmas; they stay close to their customers. Customers wield extraordinary power in directing a company’s investments. But what happens when a new technology emerges that customers reject because it doesn’t address their needs as effectively as a company’s current approach? In an ongoing study of technological change, the authors found that most established companies are consistently ahead of their industries in developing and commercializing new technologies as long as those technologies address the next-generation-performance needs of their customers. However, an industry’s leaders are rarely in the forefront of commercializing new technologies that don’t initially meet the functional demands of mainstream customers and appeal only to small or emerging markets. To remain at the top of their industries, managers must first be able to spot the technologies that fall into this category. To pursue these technologies, managers must protect them from the processes and incentives that are geared to serving mainstream customers. And the only way to do that is to create organizations that are completely independent of the mainstream business...

https://hbr.org/1995/01/disruptive-technologies-catching-the-wave