Disruptive Innovation
1 Introduction
This assignment provides the study on Disruptive Innovation using Clayton Christensen’s framework. Apart from this, this assignment also tells how the companies should react to the upcoming technologies and what should be the course of action for the same.
1.1 Innovation
There is no specific definition for innovation as such. But, according to me, innovation is creating something new or changing the old to achieve the competitive advantage and meet the increasing customer demands. This is achieved either by introducing new products, new ideas, and processes or just by changing the design of the product or the processes as per the customer demands. Innovating and creating new products and services has become very important topic of concern for all the organizations in today’s rapidly changing world. If you are not innovative, you may never know when your products become obsolete.
1.2 Types of Innovation
There are three main types of Innovations:
Sustaining innovation: This type of innovation needs to be developed to ensure that the customers are satisfied with the products and services and to stay in the game. For example upgrading the processor from dual core to Intel core i3 to i5 and enhancing the performance of computers.
Breakthrough Innovations: These innovations upgrade the level of existing category of products or services. For example I phone was a breakthrough innovation in the world of mobile market. It changed the perspective of the customers and eventually other companies started following the trend. Disruptive Innovation: In this type of innovation a new product or a sevice is introduced that creates a new market or massively alters an old one so that old players cannot compete. They are called disruptive because they disrupt the current behavior of the market. For example Introduction of computers was a disruptive innovation for companies who manufactured typewriters. According to Clayton Christensen Disruptive innovation
This assignment provides the study on Disruptive Innovation using Clayton Christensen’s framework. Apart from this, this assignment also tells how the companies should react to the upcoming technologies and what should be the course of action for the same.
1.1 Innovation
There is no specific definition for innovation as such. But, according to me, innovation is creating something new or changing the old to achieve the competitive advantage and meet the increasing customer demands. This is achieved either by introducing new products, new ideas, and processes or just by changing the design of the product or the processes as per the customer demands. Innovating and creating new products and services has become very important topic of concern for all the organizations in today’s rapidly changing world. If you are not innovative, you may never know when your products become obsolete.
1.2 Types of Innovation
There are three main types of Innovations:
Sustaining innovation: This type of innovation needs to be developed to ensure that the customers are satisfied with the products and services and to stay in the game. For example upgrading the processor from dual core to Intel core i3 to i5 and enhancing the performance of computers.
Breakthrough Innovations: These innovations upgrade the level of existing category of products or services. For example I phone was a breakthrough innovation in the world of mobile market. It changed the perspective of the customers and eventually other companies started following the trend. Disruptive Innovation: In this type of innovation a new product or a sevice is introduced that creates a new market or massively alters an old one so that old players cannot compete. They are called disruptive because they disrupt the current behavior of the market. For example Introduction of computers was a disruptive innovation for companies who manufactured typewriters. According to Clayton Christensen Disruptive innovation