William Abernathy, Kim Clark, Clayton Christensen,
Rebecca Henderson, and Michael Tushman, characterizes
innovation along two dimensions: the degree
to which it involves a change in technology and
the degree to which it involves a change in business
model. Although each dimension exists on a continuum,
together they suggest four quadrants, or
categories, of innovation.
Routine innovation builds on a company’s existing
technological competences and fits with its existing
business model—and hence its customer base.
An example is Intel’s launching ever-more-powerful
microprocessors, which has allowed the company
to maintain high margins and has fueled growth for
decades. Other examples include new versions of
Microsoft Windows and the Apple iPhone.
Disruptive innovation, a category named by my
Harvard Business School colleague Clay Christensen,
requires a new business model but not necessarily a
technological breakthrough. For that reason, it also
challenges, or disrupts, the business models of other
companies. For example, Google’s Android operating
system for mobile devices potentially disrupts
companies like Apple and Microsoft, not because
of any large technical difference but because of its
business model: Android is given away free; the
operating systems of Apple and Microsoft are not.
William Abernathy, Kim Clark, Clayton Christensen,Rebecca Henderson, and Michael Tushman, characterizesinnovation along two dimensions: the degreeto which it involves a change in technology andthe degree to which it involves a change in businessmodel. Although each dimension exists on a continuum,together they suggest four quadrants, orcategories, of innovation.Routine innovation builds on a company’s existingtechnological competences and fits with its existingbusiness model—and hence its customer base.An example is Intel’s launching ever-more-powerfulmicroprocessors, which has allowed the companyto maintain high margins and has fueled growth fordecades. Other examples include new versions ofMicrosoft Windows and the Apple iPhone.Disruptive innovation, a category named by myHarvard Business School colleague Clay Christensen,requires a new business model but not necessarily atechnological breakthrough. For that reason, it alsochallenges, or disrupts, the business models of othercompanies. For example, Google’s Android operatingsystem for mobile devices potentially disruptscompanies like Apple and Microsoft, not becauseof any large technical difference but because of itsbusiness model: Android is given away free; theoperating systems of Apple and Microsoft are not.
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