Disruptive innovation is a term that was first coined by Clayton Christensen in 1997. It refers to a type of innovation that creates a new market and value network, ultimately disrupting an existing market and displacing established market leaders. In this article, we will explore the concept of disruptive innovation and provide examples of how it has been used in various industries.
Disruptive innovation is a type of innovation that creates a new market and value network. It usually starts by targeting a small, niche market and then gradually expands to displace established market leaders. Disruptive innovations typically have lower performance and functionality than existing products, but they are cheaper and more accessible to a wider audience. As a result, they can disrupt and eventually overtake the existing market.
Disruptive innovation has a profound impact on the business world. It can create new markets and opportunities, while also making existing products and services obsolete. Disruptive innovations can also create new ways of doing things, which can lead to increased efficiency and cost savings. However, disruptive innovation can also lead to the failure of established companies that are unable to adapt to the changing market.
Disruptive innovations often require a new business model, which is different from that of existing market leaders. For example, Uber and Airbnb, both operate based on the sharing economy model, which allows people to share their resources and services with others. This is different from the traditional business models of the taxi and hotel industries, respectively.
Spotting disruptive innovation is not easy but keeping an eye on new technologies and changes in customer preferences, as well as being open to new business models can help companies identify new opportunities. Additionally, it's important to pay attention to new market entrants and to track their progress to see if they are making inroads into established markets.
From brainstorming to identifying opportunities, realizing and validating them and also effectively integrating them into the market: Stretch guides its partners from A to Z.
As innovative entrepreneurs, we tackle every project like it would be ours. We therefore pursue KPIs, and do not work according to the principle of 'hourly billing'.
Start from experience: based on in-depth market insights, data-driven trends, as well as continuous monitoring by stakeholders, we learn from the past of your business. We apply this know-how to current and new innovation projects.
By looking across borders, both international and cross-industry, Stretch offers diverse opportunities for your business.