Disruptive innovation
Clayton Christensen (1995; *The Innovator’s Dilemma*, 1997) described how entrants with simpler, cheaper products start in overlooked low-end or new markets and improve until they displace incumbents. Sustaining innovation improves performance for existing customers. Types: low-end (steel minimills) and new-market (personal computers). Incumbents miss disruption by rationally serving their best customers. Christensen et al. (2015) argued Uber is not a classic disruption; scholars also question the theory’s predictive power.
Frequently asked questions
- Disruptive vs sustaining?
- Sustaining improves for current customers; disruptive starts low-end or in new markets.
- Is Uber disruptive?
- Christensen said not in the classic sense.
References
- Bower, J. L., & Christensen, C. M. (1995). Disruptive technologies: Catching the wave. Harvard Business Review, 73(1), 43–53.
- Christensen, C. M. (1997). The innovator’s dilemma. Harvard Business School Press.
- Christensen, C. M., Raynor, M. E., & McDonald, R. (2015). What is disruptive innovation? Harvard Business Review, 93(12), 44–53.
