Greg Satell points out the definition of disruptive innovation unfolded 10 years ago by Clayton Christensen in The Innovator’s Dilemma: ‘Great firms get disrupted and fail when they got blindsided by a completely new market’. Greg notes that disruption can ‘start with a product worse from a traditional standpoint, but performing better in areas such as price or convenience: a new market would then develop, the new upstarts will serve a different kind of customer that seemed tangential, niche and less profitable to incumbent firms’.
When radical innovation is about technological leapfrogging, disruption brings a new market to the landscape, explains similarly Venkatesh Rao. In other words, the CD is a radical innovation (great technology, same players shoot again, with better margins) while the MP3 is a disruptive innovation (value shift, complete recomposition of the market, incumbent players get disrupted).
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