Question

Clayton Christensen was the pioneer of 'disruptive innovation’ and the prominent management thinker whose ideas on technology had a big influence on some of today's largest companies. His work describes how innovation can create new markets, value networks, and eventually disrupts an existing market and the way industry functions. Christensen et al. (2015) describes how the theory of disruptive innovation has proved to be a powerful way of thinking about innovation-driven growth. With reference to the Christensen et al. (2015) article (available on Blackboard) on “What is disruptive innovation”, evaluate how organisations manage disruptive digital technologies. In your essay you should also: • Describe the concept of ‘disruptive innovation’. • Appraise the key criteria for disruptive innovation. • Evaluate the opportunities for organisations leading disruptive innovation in mature markets. • Critique the challenges typically experienced by organisations in responding to the threat of disruptive innovation. • Provide examples and references to other cases and articles to support your answer where appropriate.  

Answer 1

We would evaluate the concept of "disruptive innovation" by Clayton Christensen and how it is managed by organizations.To apprise the concept of disruptive innovation ,it simply entails  creating a new market which was not there by the total anihilation of  an existing market which is engrained in the minds of the user .The key criteria for disruptive innovation is a total shift to the newer market unlike creating a parallel market wherein both markets survive.In mature markets,although the entry point and acceptance risks are higher unlike new markets the strength of the expand is also faster and viral when the customer accepts it leading to a complete shift to the newer market.A mature market also calls for greater modifications and preparedness for the launch hence the customer becomes the drill and no sampling/contests are required to attract attention.In short the product is the only total cost.Only once viral the marketing channels take up and expand.The challenges experienced by firms in response to the threat of disruptive innocation is Product ReDesign without copying the business model.Another challenge is that their Target Market rearranges itself and their readiness to serve an existing customer base without losing to them brings them back to the drawing board inviting a lot of internal team unrest and policy changes.Some close shop ,while some transform.The primary example of disruptive innovation would be the Internet.When the Internet was slowly changing the way business landscape worked ,the ones who were digital ready managed to survive however some who dint slowly became extinct.We can also give the example of the photo print and the digital print.A very recent example which changed the course of how millenials/middle aged market changed their form of entertainment.Until the late 1990's Blockbuster was the only source of entertainment and served as the pioneer of the Video on Demand category.With the advent of Netflix who kept fine tuning the customer feedback they became pioneers while forcing Blockbuster to shrink by the beginning of the decade and eventually closed by the end of the first decade.