Disruptive Innovation

Introduction Create new market

New value network

DISRUPTIVE INNOVATION Disrupt existing market

Displace earlier technology

Term introduced by Harvard Professor, Clayton Christensen in his 1997 best seller “The Innovator’s Dilemma”

Sustaining v/s Disruptive Innovation Sustaining innovation

Disruptive innovation

Evolves existing market with better value

Characteristics which customers may not want initially

Firms compete against each other’s improvements

Appear cheaper, simpler and may even be of inferior quality

Clayton Christensen Foremost authority on disruptive innovation  Widely sought after as a speaker, advisor and board member.  Author of two famous books on Disruptive Innovation 

The Innovator’s Dilemma  

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Why firms fail despite being leaders in their market Sustaining innovations - best utilized by the firms at the best position in an industry Disruptive innovations - that are either so much cheaper that they open a new market or create a new value network Performance of the disruptive technology grows faster than users’ needs and surpasses the leaders with time.

The Innovator’s Dilemma Example: Mechanical Excavator Industry Sustained Innovation – Gasoline Powered Engines

Disruptive Innovation – Hydraulic Actuated System

The Innovator's Solution: Creating and Sustaining Successful Growth 

How you can beat your most powerful competitors. • Starts with disruption • Learn the elements of disruption and practice its theories

The Innovator's Solution: Creating and Sustaining Successful Growth 

What products your customers will want to buy.

Accurately segment your markets  Help the disruptions grow into healthy businesses  Avoid the market forces that can fool you into making bad decisions. 

The Innovator's Solution: Creating and Sustaining Successful Growth 

Who the best customers are for your products.

• Extract growth from an audience that doesn’t use your products at the moment

The Innovator's Solution: Creating and Sustaining Successful Growth 

Get the scope of your business right

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Find out which is right for your business key functions - in-house or outsource integrate your product offerings or modularize

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The Innovator's Solution: Creating and Sustaining Successful Growth 

Develop disruptive growth from the top down.

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Powerful executive leadership Get the ball rolling toward successful disruptions Foster sustained business growth

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Start before you need to

Put a Senior Manager in Charge

Create an Expert Team of Movers and Shapers

Train the Troops