Disruptive Innovation: The Inevitable Change Every Market Must Face | MassChallenge - 0 views
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According to Forbes, innovation could wipe out $8 trillion worth of U.S. public company equity
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every company must have an effective strategy to either engage in or counteract disruptive innovation in its industry.
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Clayton Christensen first coined the disruptive innovation theory in a Harvard Business School paper to refer to companies who meet market demands with a simpler, cheaper solution.
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This practice often results in game-changing products that are fundamentally different from any current choice on the market.
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Low-end market disruption occurs at the “low end” of existing value networks. Unlike new-market disruption, it does not launch a groundbreaking alternative.
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New-market disruptors create products or solutions that are so much more affordable or convenient than existing options that entirely new segments of the population can begin using them.
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Because of these potential costs, innovating in a disruptive fashion may be ill-suited for organizations that do not wish to commit these resources.
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It is important to note that you don't have to choose only one type of innovation at the other's expense.
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. Sooner or later, your market is going to face a newcomer with a never-seen-before idea or business model. You must seek out ways of doing it first or else brace for the impact.