⋆ Benefits offered by disruptive innovation ⋆ American Business

⋆ Benefits offered by disruptive innovation ⋆ American Business

In 1997 the term breakthrough innovation was coined by a Harvard Business School professor named Clayton Christensen. This term describes the process that a new service or product undergoes to find acceptance within or outside a particular market or industry. Over time, it evolves into a viable business model that is accepted by a large number of consumers. Ultimately, it begins to crowd out traditional organizations in the same market.

Traditional innovative concepts

Established large companies tend to innovate with more sophisticated products that are often too expensive or complex for many. consumes them normally. These innovations are often based on the success of competitors or technical advances. Many organizations see “support for innovation” as a way to implement improved versions of successful past products. They can maintain profitability by targeting loyal, specific markets and charging higher prices. For example, software company Intuit has brought its profits up to 65% over several years of using an innovative framework of this type.

However, when this practice is used by companies, it leaves a lot of scope. are open to disruptive innovations to be surpassed — those that bring radically new processes or ideas to market. Accessibility and ease of use attract new customers who are not interested in spending more on upgrades for the same product or who are forced to learn new technologies.

Why disruptive innovation works so well

Swisslinx. In the beginning, at least the usually cheaper product results in a smaller market segment and lower profit margins. Products that are truly innovative may also fail to match established advertising and branding, or otherwise distract from the sale of proven company products. Orientation to more massive, profitable markets allows them to open up part of the lower market to new competitive and new ideas.

Disruptive innovation is often resource driven and demand driven. This innovation is widely used in developed countries. However, developing countries are also finding a ready and broad market for their new fresh ideas. With limited financial and technical resources, these markets rely more on destructive ideas. Many even engage in reverse innovation, where modern solutions and reengineering are used for more practical, simpler processes that better reflect their own culture and technology.

Consumerism is changing through innovation

New business models and products can significantly impact established markets and practices. Past disruptive innovations include landlines versus cell phones, full-service versus discounted retailers or physical mainstream schools and online training. Another great example is the increased popularity of e-cigarettes over tobacco and other similar products such as e-juices, which offer a lot of customization. There are now over 2,750,000 e-cigarette users in the US.


Disruptive innovations that capture market share have the potential to provide companies with growth opportunities and adapt to new trends. They can benefit from both consumers and competition by offering more affordable services and cheaper, better quality products. This allows startups and small companies to compete with large corporations by creating new market segments and expanding them. New ideas can be protected and patented as forms of intellectual property. Big business, in many cases, will offer huge amounts of money or great deals to incorporate innovative start-ups into their business models or pay them to leave.

Companies can also reap numerous benefits by maintaining and building a system that seeks disruptive innovation. Feedback from customers and employees can help create new concepts. Employees can have ideas on the best technologies or processes to improve efficiency and productivity, consumers can provide insight into what types of markets are interested. When new solutions adapt to new perceptions, it can lead to disruptive innovation, additional revenue streams, and improved employee engagement.

One of the main limitations of being able to capitalize on new ideas is setting rules for new ideas or products. Consumer privacy and safety is always a major concern for both the public and government. While controversy can generate interesting press coverage, it is important to expect continued resistance to new ideas.

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