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Disruptive Innovation

Disruptive innovation helps businesses to understand what they can do to avoid displacement brought on by extreme innovations. Most businesses are held back from growth when they aren’t able to take advantage of opportunities. On the other hand, a lot of disruptive innovations are not profitable at first which is another reason that prevents businesses from pursuing them as they can take away resources from other activities.

Here are two types of disruptive innovation:

·Low-end disruption targets segments of the market that are willing to pay premiums. This is deemed as a good place to start for smaller businesses as the larger organisations will be paying less attention. If the business wishes to onboard customers who are willing to pay a higher price, further innovation is required.

·New market disruption targets customers who have needs that are currently not satisfied by the businesses already operating within the market.

How to use it

Disruptive innovation can be used to manage innovations that are potentially disruptive. This method varies slightly from research and development because of the scope it covers because it will look at the business model that the technology creates. Guidelines for fostering disruptive innovation by Bowyer and Christensen:

-Is the innovation disruptive or sustaining?

-What is the strategy behind disruptive innovation?

-Where is the market for disruptive innovation?

-Make sure the disruptive innovation remains independent and does not interfere with other activities


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