This link has been bookmarked by 2 people . It was first bookmarked on 31 Jul 2006, by Kevin Wen.
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31 Jul 06
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08 Sep 04
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A disruptive innovation brings to market a product not as good as the products in the current market, and so it cannot be sold to the mainstream customers. But it is simple and it is more affordable. It takes root in an undemanding portion of the market, then improves from that simple beginning to intercept with the needs of customers in the mainstream later. I call that a disruptive innovation not because it's a breakthrough from a technological sense, but instead of sustaining the trajectory of improvement that has been established in a market, it disrupts it and redefines it by bringing to the market something that is simpler. ... Well, in the computer hardware industry, the mini-computer disrupted the mainframe. Then when the personal computer came along, it disrupted the mini-computer. And so Digital Equipment and all those guys got blown out of the water. Today, wireless handheld devices like Blackberries and iPAQs and Palm Pilots are disruptive relative to notebook computers. So those are good examples. Internet telephony — the packet-switching technology developed by Cisco and others — wasn't good enough to be used in the voice telecommunications market, so it took root in a less demanding application, data transmission. Little by little, it got better and better and now you can send a voice signal over the Internet. That's a good example of a disruptive innovation.
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A disruptive innovation brings to market a product not as good as the products in the current market, and so it cannot be sold to the mainstream customers. But it is simple and it is more affordable. It takes root in an undemanding portion of the market, then improves from that simple beginning to intercept with the needs of customers in the mainstream later. I call that a disruptive innovation not because it's a breakthrough from a technological sense, but instead of sustaining the trajectory of improvement that has been established in a market, it disrupts it and redefines it by bringing to the market something that is simpler. ... Well, in the computer hardware industry, the mini-computer disrupted the mainframe. Then when the personal computer came along, it disrupted the mini-computer. And so Digital Equipment and all those guys got blown out of the water. Today, wireless handheld devices like Blackberries and iPAQs and Palm Pilots are disruptive relative to notebook computers. So those are good examples. Internet telephony — the packet-switching technology developed by Cisco and others — wasn't good enough to be used in the voice telecommunications market, so it took root in a less demanding application, data transmission. Little by little, it got better and better and now you can send a voice signal over the Internet. That's a good example of a disruptive innovation.
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