Benefits of disruptive innovation

Benefits of disruptive innovation

In 1997 the term breakthrough innovation was invented by a Harvard Business School professor named Clayton Christensen. This term describes the process that a new service or product goes through to find acceptance within or outside a particular market or industry. Over time, it evolves into a viable business model that is accepted by a large number of consumers. Ultimately, this starts to crowd out traditional organizations in the same market.

Traditional innovative concepts

Large, established companies tend to innovate with more sophisticated products that are often too expensive or complex for many. consumes them normally. These innovations are often based on the success of competitors or on technical advances. Many organizations view “innovation support” as a way to implement improved versions of successful past products. They can maintain their profitability by targeting loyal and specific markets and charging higher prices. For example, the software publisher Intuit has increased its profits to 65% in several years by using an innovative framework of this type.

However, when this practice is used by businesses, it leaves a lot of room. are open to breakthrough innovations to be surpassed – those that bring radically new processes or ideas to the market. Accessibility and ease of use attract new customers who do not wish to spend more on upgrades for the same product or who are forced to learn new technologies.

Why disruptive innovation works so well

Swisslinx. In the beginning, at least the generally cheaper product translates into a smaller market segment and lower profit margins. Truly innovative products may also not match established advertising and branding, or otherwise distract from the sale of proven products of the company. The orientation towards more massive and profitable markets allows them to open part of the lower market to new competitive and new ideas.

Disruptive innovation is often resource and demand driven. This innovation is widely used in developed countries. However, developing countries are also finding an open and large market for their fresh new ideas. With limited financial and technical resources, these markets rely more on destructive ideas. Many even engage in reverse innovation, where modern solutions and reengineering are used for more practical and streamlined processes that better reflect their own culture and technology.

Consumerism is changing thanks to innovation

New business models and products can have a significant impact on established markets and practices. Past disruptive innovations include landline phones versus cell phones, full or low cost retailers or regular physical schools and online training. Another good example is the growing popularity of e-cigarettes over tobacco and other similar products like e-juices, which offer a lot of customization. There are now over 2,750,000 electronic cigarette users in the United States.


Disruptive innovations that capture market share have the potential to offer companies growth opportunities and adapt to new trends. They can benefit both consumers and the competition by providing more affordable services and cheaper and better products. This allows startups and small businesses to compete with large companies by creating new market segments and expanding them. New ideas can be protected and patented as forms of intellectual property. Large companies, in many cases, will come up with huge sums of money or great deals to integrate innovative start-ups into their business models or pay them to leave.

Companies can also reap many benefits by maintaining and building a system that seeks disruptive innovation. Feedback from customers and employees can help create new concepts. Employees can get ideas on the best technologies or processes to improve efficiency and productivity, consumers can provide insight into the types of markets that interest them. When new solutions adapt to new perceptions, it can lead to disruptive innovation, additional revenue streams and better employee engagement.

One of the main limitations of the ability to capitalize on new ideas is to establish rules for new ideas or new products. The privacy and safety of consumers continues to be of primary concern to both the public and the government. While the controversy can generate interesting media coverage, it is important to expect continued resistance to new ideas.