What Is Disruptive Innovation and Why Is It So Important?
The term “disruptive innovation,” coined by business consultant and author Clayton M. Christensen in 1995, means “a process by which a product of service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.”
Okay, but what does that actually mean? Can we have some examples?
This probably comes as no surprise, but historically, companies create innovations faster than can i patent an idea their consumers adopt them. This usually ends up causing an excess in goods or services that are too complex and expensive for their audiences. Selling these luxury items or services creates a huge profit margin for a company, but it also leaves a space for new innovations to break in at the bottom of the market.
Okay, but what does that actually mean? Can we have some examples?
This probably comes as no surprise, but historically, companies create innovations faster than can i patent an idea their consumers adopt them. This usually ends up causing an excess in goods or services that are too complex and expensive for their audiences. Selling these luxury items or services creates a huge profit margin for a company, but it also leaves a space for new innovations to break in at the bottom of the market.
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