Reading 10 What is Disruptive Innovation?
"Disruption" ️describes a process whereby a smaller company with fewer resources is able to
successfully challenge established incumbent businesses.
Entrants that prove disruptive begin by... ️successfully targeting those overlooked segments
gai...
Reading 10 What is Disruptive Innovation?
"Disruption" ✔️describes a process whereby a smaller company with fewer resources is able to
successfully challenge established incumbent businesses.
Entrants that prove disruptive begin by... ✔️successfully targeting those overlooked segments
gaining a foothold by delivering more-suitable functionality—frequently at a lower price
Incumbents, chasing x profitability in x segments, tend to... ✔️higher profitability in more-demanding
segments, tend not to respond vigorously.
Disruptive innovation ✔️Originates in low-end or new-market footholds
new-market footholds, disrupters create a market where none existed
Don't catch on with mainstream customers until quality catches up to their standards
Identifying true disruptive innovation is tricky ✔️1) Disruption is a process
2) Disrupters often build business models that are very different from those of incumbents
3) Some disruptive innovations succeed; some don't
4) The mantra "Disrupt or be disrupted" can misguide us
The term "disruptive innovation" is misleading because... ✔️used to refer to a product or service at one
fixed point, rather than to the evolution of that product or service over time
Most every innovation—disruptive or not—begins life as a... ✔️small-scale experiment.
Disrupters tend to focus on... ✔️getting the business model, rather than merely the product, just right.
When disrupters succeed, their movement from x to x... ✔️the fringe (the low end of the market or a
new market) to the mainstream erodes first the incumbents' market share and then their profitability.
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