Pages
Blog Archive
About Me
Friday, October 22, 2010
8:26 PM | Posted by
Disruptive Innovation
When visiting a store, customers are exposed to an extensive array of products designed to accommodate and facilitate daily necessities. By far, most of these products are the result of a process referred to as “sustaining innovation”. These innovations take the form of enhancements to a previous product. For example, new features are added, manual products become automatic products (e.g., can openers), or products become more compact (e.g., laptops and desktops). Sometimes, however, the innovation goes beyond the mere enhancement of an existing product; it actually introduces something new into the marketplace. This is referred to as “disruptive innovation.”
A disruptive innovation goes beyond the established pattern of current products. A disruptive innovation is a product or service that is affordable, simple and accessible that does not exist in the market and that causes an imperative change in the customer’s behavior (Christensen, Johnson & Horn, 2008). Disruptive innovations possess many advantages for business growth worth considering in this economic crisis in comparison to sustaining innovations.
A disruptive innovation is ripe for introduction into the market when competitors focus most of their time and energy on improving current products (i.e. the sustaining innovation) and trying to satisfy the needs of their customers (Christensen, Johnson & Horn, 2008). The disruption occurs “little by little” at the non-consumer level or “at the end of the market” where products are simple, accessible and affordable (Christensen, Johnson & Horn, 2008, p. 49, 85). At the non-consumers level, a product improves until it performs well enough to bypass popular products.
Good historical examples of disruptive innovations are the telephone and the fax machine. People once communicated by letters and telegrams and waited weeks for a response, but the invention of the telephone provided them instant communication with friends, family, and associates. When the fax machine was introduced, it allowed people to send copies of documents around the world to be signed and returned within minutes.
The impact of the telephone and fax machine on society is easily seen. They allow businesses to save both money and time. Business agents no longer need to travel long distances to operate in other countries. With the telephone verbal communication is instantaneous, and with the fax machine actual documents can be exchanged without delay. Today, people still use email and inter-office mail, but the telephone and the fax machine are staples of the office environment. For example, in the Fulton County Superior Court Mediation office, the fax machine is the most effective device to receive and send information to a judge’s chambers.
Disruptive innovations can be catalysts for change if they succeed and enhance consumers’ life. A disruptive innovation such as the iPad can save the consumer money and time. By using it, consumers may enjoy the many capabilities and applications to also play with children or spend time with family. In addition, a disruptive innovation such as the Nintendo Wii creates a new perspective, expands imagination, and creates alternatives to e.g. play sports (Anthony, 2008).
In contrast to a disruptive innovation, a sustaining innovation is characterized by the improvement of products and services that a business currently provides (Christensen, Johnson & Horn, 2008). Most of the products that we see in stores are sustaining innovations because these products previously existed in the market but were enhanced to accommodate more necessities or changing trends (Christensen, Johnson & Horn, 2008). Currently, the most popular example of a sustaining innovation is the cellular phone. While exhibiting some disruptive characteristics by allowing users to carry cellular phones on the person, cellular phones are presently improved in size capability, speed and applications added to manage daily activities.
Another example of a sustaining innovation is the HDTV. An HDTV allows people to view five different channels at the same time. Also, it allows video recording for an extensive time. Today, television manufacturers only improve the width of the TV’s and the quality of the images. No disruptive innovation has been created that impacts the perspective of televisions yet.
In my personal and professional life, I use an iPad to organize school information, projects from work, data bases from my own business, and even take pictures of new gourmet products that I see in the market. The iPad is an excellent tool that stores all my documents, files and software into one, and it is internet accessible everywhere I go. The only challenge that I take in consideration in any disruptive innovation is the efficiency of the new product (Christensen, Johnson & Horn, 2008). The iPad possesses certain software limitations that make programs slow. However, as with any innovative product, it may have problems, but its implementation will make it a better product (Christensen, Johnson & Horn, 2008).
For business growth, disruptive innovations can be the best option to introduce in the market when competitors sustain their products. Hence, disruptive innovations may be catalysts for change if they are accepted by customers. Sustaining innovations abound in the market since companies pay more attention to make current products better. As a result, if a disruptive innovation is successful and enhances consumer’s life, it has great chances to be introduced in the market and succeed in leaving competitors out of it.
Bibliography
Anthony, S. (2008). What is disruptive innovation [video]. Retrieved November 2, 2010 from http://www.youtube.com/watch?v=9L66OH-x7a4&feature=player_embedded
Christensen, C., Johnson, C. & Horn, M. (2008). Disrupting class: How disruptive innovation will change the way the world learns. New York: McGraw-Hill.
A disruptive innovation goes beyond the established pattern of current products. A disruptive innovation is a product or service that is affordable, simple and accessible that does not exist in the market and that causes an imperative change in the customer’s behavior (Christensen, Johnson & Horn, 2008). Disruptive innovations possess many advantages for business growth worth considering in this economic crisis in comparison to sustaining innovations.
A disruptive innovation is ripe for introduction into the market when competitors focus most of their time and energy on improving current products (i.e. the sustaining innovation) and trying to satisfy the needs of their customers (Christensen, Johnson & Horn, 2008). The disruption occurs “little by little” at the non-consumer level or “at the end of the market” where products are simple, accessible and affordable (Christensen, Johnson & Horn, 2008, p. 49, 85). At the non-consumers level, a product improves until it performs well enough to bypass popular products.
Good historical examples of disruptive innovations are the telephone and the fax machine. People once communicated by letters and telegrams and waited weeks for a response, but the invention of the telephone provided them instant communication with friends, family, and associates. When the fax machine was introduced, it allowed people to send copies of documents around the world to be signed and returned within minutes.
The impact of the telephone and fax machine on society is easily seen. They allow businesses to save both money and time. Business agents no longer need to travel long distances to operate in other countries. With the telephone verbal communication is instantaneous, and with the fax machine actual documents can be exchanged without delay. Today, people still use email and inter-office mail, but the telephone and the fax machine are staples of the office environment. For example, in the Fulton County Superior Court Mediation office, the fax machine is the most effective device to receive and send information to a judge’s chambers.
Disruptive innovations can be catalysts for change if they succeed and enhance consumers’ life. A disruptive innovation such as the iPad can save the consumer money and time. By using it, consumers may enjoy the many capabilities and applications to also play with children or spend time with family. In addition, a disruptive innovation such as the Nintendo Wii creates a new perspective, expands imagination, and creates alternatives to e.g. play sports (Anthony, 2008).
In contrast to a disruptive innovation, a sustaining innovation is characterized by the improvement of products and services that a business currently provides (Christensen, Johnson & Horn, 2008). Most of the products that we see in stores are sustaining innovations because these products previously existed in the market but were enhanced to accommodate more necessities or changing trends (Christensen, Johnson & Horn, 2008). Currently, the most popular example of a sustaining innovation is the cellular phone. While exhibiting some disruptive characteristics by allowing users to carry cellular phones on the person, cellular phones are presently improved in size capability, speed and applications added to manage daily activities.
Another example of a sustaining innovation is the HDTV. An HDTV allows people to view five different channels at the same time. Also, it allows video recording for an extensive time. Today, television manufacturers only improve the width of the TV’s and the quality of the images. No disruptive innovation has been created that impacts the perspective of televisions yet.
In my personal and professional life, I use an iPad to organize school information, projects from work, data bases from my own business, and even take pictures of new gourmet products that I see in the market. The iPad is an excellent tool that stores all my documents, files and software into one, and it is internet accessible everywhere I go. The only challenge that I take in consideration in any disruptive innovation is the efficiency of the new product (Christensen, Johnson & Horn, 2008). The iPad possesses certain software limitations that make programs slow. However, as with any innovative product, it may have problems, but its implementation will make it a better product (Christensen, Johnson & Horn, 2008).
For business growth, disruptive innovations can be the best option to introduce in the market when competitors sustain their products. Hence, disruptive innovations may be catalysts for change if they are accepted by customers. Sustaining innovations abound in the market since companies pay more attention to make current products better. As a result, if a disruptive innovation is successful and enhances consumer’s life, it has great chances to be introduced in the market and succeed in leaving competitors out of it.
Bibliography
Anthony, S. (2008). What is disruptive innovation [video]. Retrieved November 2, 2010 from http://www.youtube.com/watch?v=9L66OH-x7a4&feature=player_embedded
Christensen, C., Johnson, C. & Horn, M. (2008). Disrupting class: How disruptive innovation will change the way the world learns. New York: McGraw-Hill.
Subscribe to:
Post Comments (Atom)



0 comments:
Post a Comment