A framework for disruptive innovation

Abstract

Purpose Disruptive innovations have the potential to fundamentally change how businesses operate. This study aims to propose a five-step framework to help firms develop disruptive innovations and to offer a scale for evaluating their disruptive potential. This scale can also be applied to identify the disruptive potential of innovations introduced to the market by competitors. Design/methodology/approach The framework was designed on the basis of criteria chosen to identify the disruptive potential of innovations at early stages of development based on a theoretical understanding of disruptive innovation, its challenges and holistic consideration of innovation as a dynamic process. It consists of steps that could serve as a reference model during the process of developing innovations with disruptive potential. A case study is discussed in detail to demonstrate the applicability of the framework. Findings A simple yet comprehensive assessment framework for disruptive innovation has been developed, which can help develop innovations with disruptive potential in existing settings of incumbent firm. A case study of the Wii demonstrates that Nintendo could have planned its disruptive product using the proposed framework. Originality/value Most research works in this area have focused on difficulties experienced by firms facing disruption and failed to highlight its opportunities; this study argues that firms can intentionally create disruptive innovations. The results of this study offer firms a tool that facilitates a proactive approach, helping develop new disruptive innovations and identify those from competitors.

Indonesian Peer to Peer Lending (P2p) at Entrant’s Disruptive Trajectory

“…Figure 2 is a disruptive innovation model that shows that incumbent companies can give better products or service quality for the high-end market (with highest profitability) that exceeds the needs of low end and mainstream customers. Entrants on the disruptive trajectory then improve their offer and performance to move on to the higher market (with highest profitability) and they thus then challenge the domination of established companies (Anagnostopoulos, 2018;Christensen & Raynor, 2003;Christensen et al, 2015;King & Baatartogtokh, 2015;Rasool et al, 2018). Incumbents are typically not interested in creating and developing their own disruptive innovations that promise target smaller markets, lower margins and the introduction of inferior services and products that their existing customers cannot use (Christensen et al, 2016).…”

Evaluating Disruptive Innovation Project Management Capabilities

“…The concept of disruptive innovation arose from the need to define the innovations that with little or no prior warning are appearing on the market, modifying products and services and creating new business models [43]. As Rasool et al [3] affirmed, unlike sustained innovations, which are based on existing products and services for existing clients, disruptive innovations target new clients and offer different characteristics and values when compared with the latter. This type of innovation leads to the appearance of new products and services that lead to a rupture with established market norms, seeking progressive market consolidation [2,4].…”

“…Therefore, at first, disruptive technologies that are introduced into a market are targeted at less demanding clients and with lower purchasing power [2,9], unlike the established technologies, because the latter are dedicated to the development and improvement of their product or service and, in consequence, increase their value and price [46]. Firms from the principal markets tend initially to ignore disruptive innovations, considering them of low quality and unrelated to their industry [3]. As the disruptive technology increases, it starts to occupy niche markets that the established technologies abandon and it manages to increase its market share, "invading" the principal markets when doing so [9].…”

“…A disruptive innovation is defined as the innovation of an existing technology that alters the characteristics of the products and services on the market, endowing them with greater value [1,2]. The term refers to a unique type of innovation that uses technologies under development to change current performance metrics and eventually, to displace established competitors [3]. Therefore, the "incumbents" can finally be interrupted by the "entrants" [4].…”

Dynamics of water innovation : Insights into the rate of adoption, diffusion and success of emerging water technologies globally

“…Despite this progress made by academics, practitioners still struggle with the innovation challenge to confidently predict whether an early stage disruptive innovation technology would have a good chance to succeed and "disrupt" the market. Disruptive innovation theory is still in its infancy, and many areas of theory remain under-researched due to the lack of understanding and lack of available empirical data (Rasool et al, 2018, Christensen et al, 2018, Nagy et al, 2016Bower and Christensen, 1995;Christensen and Bower, 1996;Christensen, 1997).…”