Disruptive innovation is the transformation of an expensive, complicated product into something much more affordable and accessible, allowing many more people to use the product or service.
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Disruptive innovation is the transformation of an expensive, complicated product into something much more affordable and accessible, allowing many more people to use the product or service. For example, TurboTax disrupted the field of accounting. At first, its software was not as good as an accountant, but over time it improved and became an industry leader in tax preparation.
Not all innovations are disruptive, even if they are breakthroughs. In fact, disruptive innovations often start as products that aren’t good enough to compete with existing technologies in established markets. They also tend to target the low end of the market, where customers are viewed as less profitable by leading companies, or they focus on non-consumers whose alternative is nothing at all.
A disruptive innovation has three key components. First, it must contain an enabling technology. Second, it must have an innovative business model. Finally, a coherent value network must exist to support it.
Disruptive innovations are a positive force, not only in the traditional business sense but socially and economically as well. They can make industries like education, healthcare, and global development more accessible and affordable.
To learn more, visit ChristensenInstitute.org.
