Disruptive Innovation
Every now and again a radical innovation is introduced that transforms
business practice and rewrites the rules of engagement. In other words,
business practice across an entire industrial sector changes radically.
Christensen (1997) defines these types of innovations as disruptive innovations.
Disruptive innovation often occurs because new sciences and
technology are introduced or applied to a new market that offers the
potential to exceed the existing limits of technology. Research laboratories
usually are the source of disruptive technologies. Many companies watch
out for the outcome of this type of technology, and from this they choose
potential winners that are quickly adopted for new products and services.
Some large companies, such as Intel, have their own internal research laboratories
but also work in cooperation with universities and other such
organizations in order to develop the latest disruptive technologies, which
can take many years to develop and exploit successfully.
The driving force in creating disruptive technologies is the same as for
any innovation, that is, to add value for customers that will encourage
them to purchase products and services over and over from the same
organization. However, determining the appropriate technology trajectory