disruptive innovation

Examples of disruptive innovation in the following topics:

• Introduction to Entrepreneurship

  • Schumpeter's idea encompasses more than single innovations, as he further explains how innovative thinking allows for a sustainable and long-term economic growth for societies that enable it.
  • Innovative thinking allows for so-called disruptive innovations—innovations which make leaps and bounds over existing products.
  • The idea of incremental innovation is simple: large change is a byproduct of small innovations compounded with others.
  • An example of this kind of innovation is Toyota's just-in-time inventory management.
  • Incremental innovations are often process-based, while disruptive innovations are usually new goods or processes themselves.

• Types of Innovation

  • Technological innovation has been a hot topic in recent years, particularly when coupled with the concept of disruptive innovation.
  • Disruptive innovation is usually a technological advancement that renders previous products/services (or even entire industries) irrelevant.
  • For example, the smartphone disrupted landlines, Netflix made Blockbuster obsolete, and mp3s have marginalized CD players.
  • The strategic-reflexive mode of innovation is the most effective mode for change and innovation.
  • Strategic changes can be disruptive but are more often incremental.

• The State of Technology

  • This type of technological opportunity is often referred to as a disruptive innovation.
  • Disruptive innovations rapidly improve the overall performance (fulfillment of the user's needs) in a fraction of the time normally required to improve organically through efficiency.
  • Netflix disrupted the movie and TV market through rapidly improving the experience in a short amount of time.

• Increasing Adaptation

  • Technological innovations, global market expansions, and the potential for constant (sometimes disruptive) innovation all point to the need for organizations to be adaptive.
  • Increasing an organization's ability to adapt to change and minimize disruption can reduce costs and save time.

• Growth through innovation

  • However, technological innovations like these must be able to be protected, or they will not last.
  • Certain types of innovation are especially advantageous for start-ups.
  • In his book, The Innovator's Dilemma, Christensen (1997) differentiates between "sustaining technologies" and "disruptive technologies".
  • Disruptive technologies, on the other hand, which enable new applications for new customer segments, tend to be developed and marketed by start-ups.

• Strategy

  • Flexible product development is the ability to make changes in the product being developed or in how it is developed, even relatively late in development, without being too disruptive.
  • The more innovative a new product is, the more likely it is that the development team will have to make changes during development.
  • Although these methodologies have strengths, their side effect is encouraging rigidity in a process that needs flexibility to be effective, especially for truly innovative products.
  • Flexibility techniques must be used with discretion, for instance, only in the portions of a product likely to undergo change, in order to minimize potential disruptions, delays, and cost overruns.

• The Rate of Adoption

  • Have an innovation adopted by a highly respected individual within a social network, creating an instinctive desire for a specific innovation.
  • Inject an innovation into a group of individuals who would readily use an innovation.
  • Rogers defines several intrinsic characteristics of innovations that influence an individual's decision to adopt or reject an innovation:
  • Trialability: How easily an innovation may be experimented.
  • Discuss the factors leading to adoption of an innovation, and the strategies for making innovation sustainable

• The Challenge of Technology

  • The reason behind the prioritization of technology management is that new, disruptive technology constantly threatens to result in higher efficiency of competitors.
  • Implementation: After a business organization has a mature IT department that understands the company processes, the department can work with an understanding of the available technologies to upgrade and implement these innovations.
  • As innovation continues to demand a central role in businesses, research and development will continue to be critical to a healthy organization.
  • Appropriately funding research initiatives that not only keep track of new innovation but actively seek out strategic solutions creatively offers companies the best chance of survival in the global marketplace.
  • Combining BTM with research and development will ensure managers are properly equipped to tackle the challenges of modern-day innovations, leveraging these capabilities to differentiate from the competition and derive stronger margins.

• Considering the Organizational Life Cycle

  • This lends itself well to pre-bureaucratic stuctures in which everyone involved is empowered to take the reins and employ their creativity and innovation.
  • Organizations in this stage must be careful not to fall too strongly into rigid structures that inhibit or disrupt efficiency, communication, or decision-making.
  • This often requires structural evolution and rapid iterations in the feedback loop of disruption, growth, refinement, and renewal.

• Advantages and disadvantages of business networks

  • Supporters counter these arguments by insisting that it's easy to dismiss unproductive or disruptive participants and that the more brains that are brought to the table for the purpose of making a decision the better the resolution.
  • Increased human development and innovation (from the sharing of skills and experiences),