Comments on: Why Disruptive Innovation Can Help Market Leaders Knowledge@Wharton is the online business analysis journal of the Wharton School of the University of Pennsylvania. Tue, 19 Jun 2018 17:18:17 +0000 hourly 1 By: Anumakonda Jagadeesh Mon, 12 Jun 2017 18:12:12 +0000 Outstanding.
A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen and coworkers beginning in 1995. Since the early 2000s, “signiﬁcant societal impact” has also been viewed as an aspect of disruptive innovation.
Beyond business and economics disruptive innovations can also be considered to disrupt complex systems, only including economic and business-related aspects(Wikipedia).
Disruptive Innovation is a term coined by Harvard Business School Professor Clayton Christensen. He describes disruptive innovation as “a process by which a product or service takes root in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.”1 Disruption has always been a part of the business world, particularly as technology continues to evolve. For instance, cell phones began disrupting landlines and telephone company’s years ago. However, the rate at which we see new companies disrupting industries has grown and changed at a rapid pace.
How does disruption differ from innovation? There are some crossovers between the two, but there are also differences. Just as all thumbs are fingers, but not all fingers are thumbs, all disrupters are innovators, but not all innovators are disruptors. Disruptors and innovators are similar in that they’re both creating and making ideas, items, products or services. However, the main difference is that a disruptor doesn’t just create something new or improve upon a process; they literally change the industry and alter the way we think, behave, and act about a certain idea, item, product, or service.
Another way to think about it is that innovators are rational, while disruptors are irrational, according to Shilen Patel, founder of business accelerator Independents United. His example: “Hailo applied technology using a very rational set of rules to achieve innovation, whereas Uber’s irrational mindset asked: ‘What if I could get everyone in
London to be a taxi driver?’ They then applied technology to achieve that. is rational; Airbnb is 100 percent irrational.”2 Disruption still requires organization to it though in order to grow and be a success, Patel cautions.
Renowned expert in the world of disruption, Richard Branson, has said, “Disruption is all about risk-taking, trusting your intuition, and rejecting the way things are supposed to be. Disruption goes way beyond advertising; it forces you to think about where you want your brand to go and how to get there.”3 A CLOSER LOOK In late 2015,
Forbes announced, “disruption is the new normal.”4 And looking at their list of the 25 most disruptive brands of 2015, it’s clear that they’ve all made their mark on the industry:
1. Uber Parker 2. Chipotle 34. Red Bull 5. Snapchat 6. Alibaba 7. Waze 8. Under Amour 9. Instagram 10. Apple 11. CVS 12. Taylor Virgin America 13. 14. Warby Parker 15. Chipotle. 16. 72andSunny 17. SoulCycle. 18. Rent the Runway. 19. Houzz. 20. Waze. 21. DraftKings. 22. Coke. 23. Eataly. 24. Birchbox. 25. Virgin America
Dr.A.Jagadeesh Nellore(AP),India

By: Hashim J Abdella Tue, 02 Sep 2014 01:06:18 +0000 Pretty much interesting theory as I am promoting disruptive technology/product. We will see if the manufacturer/my supplier shifts to the dynamic commercialization route.

By: Sophie Tran Tue, 19 Aug 2014 17:51:53 +0000 This was a great read. I’d love to pursue an MBA at Wharton one day. Nothing satisfies the hunger for innovation because the world we live in is constantly facing repeating (and new) challenges. Harvard MBA seems to be into social entrepreneurship. Is Wharton pushing for the same type of innovation and entrepreneurship… one that is people-centric?