Post by account_disabled on Mar 4, 2024 21:19:14 GMT -7
What drives a company to challenge the established rules and completely redefine its industry? What are the reasons that led giants like Nokia, Yahoo or Blockbuster to lose hegemony in their respective markets? Complacency, resistance to change or lack of adaptation to innovation are some of the obstacles that limited their business growth. The largest companies also run the risk, like the rest, of failing or being left behind when they do not adapt to new technologies or new business models. Have you ever wondered how some firms, even small ones, have completely transformed a sector and influenced the global economy? The answer lies in disruptive innovation , a concept that has revolutionized the way companies compete in the market. What is disruptive innovation and how can we apply this mentality in a company? How is it transforming the economy and the way we live? What role does technology play when applying disruptive innovation? If you want to answer these questions, below we will tell you everything about disruptive innovation.
CTA Post What is disruptive innovation and what is its importance in the economy The concept of “disruptive innovation” was devised by American academic and business consultant Clayton Christensen to refer to “ a process of change in which new products or services replace existing ones, creating new markets and rendering traditional business models obsolete. ” . While it is true that the concept began to be conceived in 1995 in the Harvard Business Review Europe Mobile Number List magazine , it was not until two years later, with the publication of the book The Innovators' Dilemma: When New Technologies Can Make Large Companies Fail, when the author developed the complete theory of disruptive innovation. From their point of view, a disruptive innovation is much more than a simple improvement or evolution of existing products or services , since it is one that ends or radically transforms an established market.
Clayton Christensen's theory has had a great impact on the current economy and is one of those that has most influenced some of the most important entrepreneurs of recent decades such as, for example, Reed Hastings (Netflix), Steve Jobs (Apple) , Jeff Bezos (Amazon) or Andrew Grove (Intel). And the impact of his ideas has been such that these companies have revolutionized the sectors in which they operate. Characteristics of disruptive innovation One of the characteristics that define disruptive innovation is its long-term vision compared to sustained innovation , another concept also conceived by Christensen and which refers to innovation that is focused on the short term and wants, above all, to satisfy the needs current customers. Where should companies invest? In the short or long term? These doubts are, precisely, the bases of his book published in 1997, where he defends the need to seek a balance between investment in sustained and disruptive technologies . “Following a strategy of sustained innovation makes much more sense in the short term, but in the long run it can condemn the company to failure.