Disruptive Innovation improves a product or service in ways that the market does not expect, usually by new entrants overtaking incumbents. Examples include compact fluorescents overtaking incandescent light bulbs, the PC replacing typewriters, and digital overtaking print photography. They can also be innovative new partnerships like food conglomerate Danone teaming up with Nobel Prize winner Muhammad Yunus to produce a low-cost, eco-dairy product, or companies gate-crashing another market, such as Google entering the energy sector.
Elements of disruptive innovation
- sophisticated technology simplified
- low-cost innovative business models
- economically coherent value network
- regulations and standards that facilitate change