DISPRUPTIVE INNOVATION

Introduction

Create new market

New value network

Disrupt existing market

Displace earlier technology

DISRUPTIVE INNOVATION

Term introduced by Harvard Professor, Clayton Christensen in his 1997 best seller “The

Innovator’s Dilemma”

Sustaining v/s Disruptive Innovation

Sustaining innovation

Evolves existing market with better

value

Firms compete against each other’s

improvements

Disruptive innovation

Characteristics which customers

may not want initially

Appear cheaper, simpler and may

even be of inferior quality

Clayton Christensen Foremost authority on

disruptive innovation Widely sought after as a

speaker, advisor and board member.

Author of two famous books on Disruptive Innovation

The Innovator’s Dilemma Why firms fail despite being

leaders in their market Sustaining innovations - best

utilized by the firms at the best position in an industry

Disruptive innovations - that are either so much cheaper that they open a new market or create a new value network

Performance of the disruptive technology grows faster than users’ needs and surpasses the leaders with time.

The Innovator’s Dilemma

Example: Mechanical Excavator Industry

Sustained Innovation – Gasoline Powered Engines

Disruptive Innovation – Hydraulic Actuated System

The Innovator's Solution: Creating and Sustaining Successful Growth

How you can beat your most powerful competitors.

• Starts with disruption• Learn the elements

of disruption and practice its theories

The Innovator's Solution: Creating and Sustaining Successful Growth

What products your customers will want to buy.

Accurately segment your markets Help the disruptions grow into healthy businesses Avoid the market forces that can fool you into

making bad decisions.

The Innovator's Solution: Creating and Sustaining Successful Growth

Who the best customers are for your products.

• Extract growth from an audience that doesn’t use your products at the moment

The Innovator's Solution: Creating and Sustaining Successful Growth

Get the scope of your business right Find out which is right for your business key functions - in-house or outsource integrate your product offerings or modularize

The Innovator's Solution: Creating and Sustaining Successful Growth

Develop disruptive growth from the top down.

Powerful executive leadership Get the ball rolling toward successful disruptions Foster sustained business growth

Start before you need to

Put a Senior Manager in

Charge

Create an Expert Team

of Movers and

Shapers

Train the Troops