Disruptive Innovation: Transforming Expensive Products into Affordable Solutions, Summaries of Business Systems

Download Disruptive Innovation: Transforming Expensive Products into Affordable Solutions and more Summaries Business Systems in PDF only on Docsity! DISRUPTIVE INNOVATION - refers to the innovation that transforms expensive or highly sophisticated products or services—previously accessible to a high-end or more-skilled segment of consumers—to those that are more affordable and accessible to a broader population - This transformation disrupts the market by displacing long- standing, established competitors. - Disruptive innovation is not the process of improving or enhancing products for the same target group; rather, it involves the technologies used to make them easy to use and available to the larger, non-targeted market - An example of disruptive innovation is the introduction of digital music downloads, which have, by far, replaced compact discs (CDs). - These technologies and the way they were incorporated into the business were primarily designed to allow companies to remain competitive, or at least maintain a status quo. Disruptive technologies and the way they are integrated—the disruptive innovations—were less easy to plan for and potentially more devastating to companies that did not pay enough attention to them - requires an investor to focus on how companies will adapt to disruptive technology - Artificial intelligence (AI) and its potential to learn from employees and perform their jobs may be a disruptive innovation for the job market as a whole soon. - What makes a technology or innovation “disruptive” is a point of contention KEY TAKEAWAYS  Disruptive innovation refers to innovations and technologies that make expensive or sophisticated products and services accessible and more affordable to a broader market.  Disruptive innovation refers to the use of technology that upsets a structure, as opposed to "disruptive technology", which refers to the technology itself.  Amazon, launched as an online bookstore in the mid-1990s, is an example of disruptive innovation.  Disruptive innovation requires enabling technology, an innovative business model, and a coherent value network.  Sustaining innovation is the process of innovating to improving products and services for existing customers.