Disruptive Innovation - 1105 Words

ENTRY 2, DISRUPTIVE INNOVATIONS In this essay I will describe and explain the causes and consequences of disruptive innovation. Firstly I will write about what dualism is, why it is important and how to achieve it. I will continue with describing difficulties, which may occur on a company’s path towards it, namely overshooting and inability to recognize the start of a new industry cycle. Further on, I will go deeper in the reasons, why incumbents fail to recognize the new entrants on the market, specifically â€Å"attack from below† and other discontinuous patterns of change. In the end I will describe some of the responses taken by established companies to disruptive technologies. In today’s world when competition is such a big factor,†¦show more content†¦This phenomenon was first identified by Gilfillan in 1935, and he named it â€Å"sailing ship effect†. It describes the way, how even though existing players on the market are often aware of approaching discontinuities, they still pursue with their current trajectories with success in the short term. Furthermore, the true significance of disruptive technology even in Christensens conception of it is not its displacing of established products. Rather, it is a great means for enlarging and broadening markets and providing new functionality. And according to Utterbacks’ explanation: â€Å"The degree to which the market was expanded by the innovation seemed to be the strongest factor favouring new entrants†, a possible conclusion might be that this leads to a never-ending circle. Nonetheless, some companies have developed different strategies to keep themselves on top. Firstly, there are companies, which pursue the strategy of entering the market created by outsiders, in a role of a follower. They allow small pioneers to lead the way into new market territory. For example: IBM let Apple, Commodore and Tandy define a personal computer (Christensen, Bower, 1995). The second possible response taken by the incumbents is creating a new market by corporate venturing. It means using a start-up to create their own disruptive technology from a separate organization. The start-up would obtain a lower profit margin than theShow MoreRelatedDisruptive Innovation749 Words   |  3 PagesDisruptive innovation Explanation of the term A disruptive innovation is an innovation that helps create a new market and value network, and eventually disrupts an existing market and value network (over a few years or decades), displacing an earlier technology. The term is used in business and technology literature to describe innovations that improve a product or service in ways that the market does not expect, typically first by designing for a different set of consumers in a new market andRead MoreDisruptive Innovation And Its Innovation Essay1906 Words   |  8 PagesExecutive Summary â€Å"A disruptive innovation is a technologically simple innovation in the form of a product, service, or business model that takes root in a tier of the market that is unattractive to the leaders in an industry.† – Clayton M. Christensen A disruptive innovation is a process of development of new products or services to substitute existing technologies and attain a competitive advantage in the market (Christensen, The innovator s Dilemma, 1997) . Disruptive innovation transforms an existingRead MoreDisruptive Innovation2588 Words   |  11 PagesBy Mashell Chapeyama Disruptive innovation There are six key attributes of disruptive innovation which managers must strive to follow. These are as follows: 1. Disruptive innovation spur growth 2. Disruptive business either creates new markets or takes the low end of an established market 3. Disruptive opportunities require a separate business planning process 4. Do not try to change your customers, help them 5. Integrate across whatever is not good enough 6. Be patient for growth butRead MoreDisruptive Innovation2134 Words   |  9 PagesMeans to tackle disruptive innovation Name: Prasun Kumar Das PGPM Participant, Batch 1114 Information Management S. P. Jain Institute of Management amp; Research Mobile - +91 7506793925 DISRUPTION – The New Age Competitive Strategy Everything is fair in love and war; and competition in a business environment is like a cold war. 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Conclusion Introduction Disruptive innovation has a proven advantageRead MoreDisruptive Innovation Theory By Christensen896 Words   |  4 PagesINTRODUCTION: Disruptive Innovation Theory by Christensen (1997) is one of the important practice of strategic technology innovation. Disruptive innovation has a main focus on development of organization capabilities, developing new markets for technologies. According to Clayton Christensen the man who coined the word, disruptive innovation is a process. He sees that the process became a mechanism through which technology and services are improved with long term surviving nature of organizationsRead MoreIs Christensen s Theory Of Disruptive Innovation1785 Words   |  8 PagesEffectively of Christensen s Theory of Disruptive Innovation A Literature Review Initiated in 1995 by Bower Christensen, The disruptive innovation was improved by Christensen in 1997 from his book â€Å"Innovators dilemma† wherein questioning why vast corporations follow innovation through conventional marketing by not focusing on the needs and wants of consumers but the want of the company to sell such specific goods in the market. (Corsi and Di Minin 2014) Christensen (Bower Christensen, 1995;Read MoreA Reï ¬â€šective Review of Disruptive Innovation Theoryijmr1345 Words   |  6 PagesA strategic approach to disruptive technologies 1 A strategic approach to disruptive technologies Disruptive change requires new strategies. When conditions change rapidly, organisations find their former approaches which have led to success in the past, are no longer effective. It can be hard to let go of these approaches if they have been a source of competitive advantage. This leads many managers to assume that successful responses to disruptive change are a matter of luck. But it is possible