Theory Disruptive Innovation Disruptive Innovation describes a process by which a product or service initially takes root in simple applications at the bottom of a market—typically by being less expensive and more accessible—and then relentlessly moves upmarket, eventually displacing established competitors. Disruptive Innovations are NOT breakthrough technologies that make good products better; rather they are innovations that make products and services more accessible and affordable, thereby making them available to a larger population. Disruptive Innovations are NOT breakthrough technologies that make good products better.
Disruptive Innovation Disruptive Innovation In the new economic era, the dynamic and competitiveness of enterprise operating environment have been reinforced constantly.
Customer demands, the technology evolution, the competitive interaction and cooperative connection among enterprises, the market regulation and the changes of the circumstances all make the enterprise falling into a maelstrom of uncertainty. These uncertain elements can bring greater opportunity for the enterprises as well as threaten the life and death of the enterprises.
Christensen, professor from Harvard University, from the new perspective of seeking the exact places where the profit of enterprise lies, proposed the disruptive innovation theory which caused extensive attention and heated discussion of scholars and practitioners. In this essay, the concept of disruptive innovations will be further explored by using the model developed by Christensen, The evaluation of the emergence of electric vehicles, a disruptive innovation in Chinese automobile industry will be used.
The reasons why considering this innovation as a disruptive one will be outlined. Then, the in the realm of automobile industry, the responses of the companies to this innovation will be assessed so as to ascertain the elements that influenced these responses.
He further studied the vicissitude of many industries like disc drive, mechanical excavator, iron and steel smelting; successfully mixed the technological innovation and market innovation together; thus proposed the theory of disruptive innovation.
Based on the target market, he categorized innovation into two kinds, Sustaining Innovation and Disruptive Innovation. Thomond, and some other people believe that disruptive innovation is the successfully developped process, technology, product, service or business model that can distinctly change traditional competitive rules, and the needs of existing market.
In order to better distinguish the concepts of disruptive innovation, incremental innovation and radical innovation, they built the continuum model of the innovative concept. At the same time, the question that how the incumbent enterprised response the threat of the disruptive innovation becomes a widely-discussed issue in academic circles.
From the perspective of cognitive theory and social psychology, Gilbert, et al investigated the attitude and action of the enterprises towards disruptive innovation. They indicated that how the incumbent firms view disruptive innovation is the key point; this will affect the investment determination and business model in terms of disruptive innovation.
The incumbent enterprised will lose the opportunity of the nest round of the competition when they can hardly adapt to the new model under the condition of oriented by the customers from mainstream market. From the definition mentioned above, though the emphases are different, basically the main contents are similar: All of these lead to the exposure of the characteristics like strategic defeat from the perspective of market, and reflect the essence of disruptive innovation.
However, this overlooks the inspection of innovative technology itself. The disruptive innovation is usually based on new technological trajectory adopting non-continuity technology with the demand of brand new capacity for enterprises.
In this essay, the writer cites example of Chinese electric vehicle market to elaborate disruptive innovation and its influence towards former industry, the following are the reasons: Electric vehicle is different from traditional fuel cars with the characteristics of simple structure, less moving and driving parts, less workload of design, production and maintenance.
With the improvement of performance, new value structure gradually becomes new evaluation standard in industry, which gives disruptive innovation the chance to encroach the realm of old technology.
Due to the rising oil price, and the increase of the emission pollution, environmentally friendly fuel-efficient are paid more and more attention by some customers. Since customers form this kind of market is incapable or unwilling to pay for the mainstream products the prices which are more than expected.
Although the gross profit rate of fringe market is relatively low, for the later-developing firms that adopt new technique process or business model, they still can gain the net margin of maintaining its survival and development and then lay the groundwork of destructive activity for the subsequent market.
From December on, the total sum of highway-capable plug-in electric passenger cars and utility vans around the world was more than , up from more thanunits in Inthe situation was that plug-in vehicles represented 0. As more and more people in China can afford to buy cars, there is a quick growing demand for transport.
In consideration of fulfilling its promise of encouraging electric-vehicle development, Chinese government will contribute 15 billion dollars to the industry. Freidman They intend to create a pioneering industry that can provide works and exports as well as reduce the urban pollution and the decrease its dependence on petroleum.
Previously, China announced that electric vehicles would be as part of government plans to manage pollution. And now China will give more subsidies for electric vehicles.When Disruptive Technologies Attack Attack Technologies Christensen, in his article, it says that in the mainstream market, there is the idea of covering products that could sweep the mainstream trend in the market.
The theory of disruptive innovation, introduced in these pages in , has proved to be a powerful way of thinking about innovation-driven initiativeblog.com leaders of small, entrepreneurial companies.
Mar 18, · Disruptive Technologies: In order to deal with the increasingly market demand and Airline industry must switch their incumbent operating way, which to maintain passenger records and numbers booked on a paper way, to a new management way- information system, that is the disruptive technology for the.
1 Introduction This assignment provides the study on Disruptive Innovation using Clayton Christensen’s framework. Apart from this, this assignment also tells how the companies should react to the upcoming technologies and what should be the course of action for the same.
Technology; Disruptive Innovation Essays; Disruptive Innovation Essays (Examples) Filter results by: Their acquisition of Radian6 signals a view they have of metrics and measuring performance of social media applications being critical to the long-run success of their business.
This also signals a shift in the market Dr. McAfee wrote . Disruptive Innovation describes a process by which a product or service initially takes root in simple applications at the bottom of a market—typically by being less expensive and more accessible—and then relentlessly moves upmarket, eventually displacing established competitors.