I am fascinated by disruptive innovation and the factors that determine whether a particular innovation will succeed or fail.
Clayton Christensen's book 'The Innovators Dilemma' explores these thoughts in depth. I would definitely recommend reading it if you haven't already. Projects Voice Books Contact The difference between sustaining and disruptive innovation is commonly misunderstood by many in business. Image source. It is the business model and not the technology that enables and creates the disruptive effect.
A key to disruptive innovation is that, opposed to sustaining innovation, it does not take place with established competitors , as Christensen explains in Harvard Business Review.
Specifically, as incumbents focus on improving their products and services for their most demanding and usually most profitable customers, they exceed the needs of some segments and ignore the needs of others.
Entrants that prove disruptive begin by successfully targeting those overlooked segments, gaining a foothold by delivering more-suitable functionality—frequently at a lower price. Incumbents, chasing higher profitability in more-demanding segments, tend not to respond vigorously. An example of disruptive innovation is how when Apple introduced the iPod, the company brought together a strong technology with a groundbreaking business model.
Customers flocked to Apple, and the company had record-breaking profits with its hardware, software and service. But the real innovation was making downloading digital music easy. Sustaining technologies, on the other hand, are innovations that work with established markets and already existed products and ideas with respect to product sustainability, product quality, and time and cost efficiency.
Sustaining innovations are about companies competing with other players in the market with similar offerings, in a race to sustainability. Disruptive technologies are innovations that significantly change the way consumers or businesses operate by underperforming already established products in mainstream markets. These are not breakthrough technologies; rather, they are innovative technologies that make products and services more accessible and affordable for their consumers.
Sustaining technologies, on the other hand, are innovations that work with established markets and already existed products and ideas with respect to product sustainability. Making a choice between the two approaches is not that simple because both have their fair share of pros and cons. In a nutshell, sustaining technology drives long term innovation and is more incremental in nature, whereas disruptive technology focuses on creating new market value.
Difference Between Similar Terms and Objects. MLA 8 Khillar, Sagar. Name required. Email required. Please note: comment moderation is enabled and may delay your comment. There is no need to resubmit your comment. Notify me of followup comments via e-mail.
Christensen advises managers to follow four rules to avoid falling into the trap of trying to force disruptive innovation to happen the same way as sustaining innovation:. If you are a large organization that is looking to create disruptive innovation, consider finding a way to try it separately and autonomously from the main part of the business. If you are a small organization that wants to sustain innovation, utilize your existing customer base for feedback and data on the most impactful improvements you can make to provide greater value.
Viima , the innovation platform, explains why both disruptive and sustaining innovation are important but must also be approached with the right intent:. If you only start investing when a disruptive technology has already gained significant momentum, you not only have to invest increasingly more to catch up with the competition but also do so from a base of declining revenue for your existing business, which usually proves to be impossible.
Keep in mind, however, that moderation is key. If all attention is simply steered towards disruptive innovation, revenue and profit will usually start to decline, which in turn increases the risk profile dramatically. There are massive benefits to both disruptive innovation and sustaining innovation approaches as well as many negatives to neglecting innovation altogether. There is no silver bullet to innovation, but utilizing resources like innovation training will help provide insight into effective strategies that teams can pursue to dramatically increase their chances of success.
Here at Voltage Control, we help enterprises disrupt, sustain and accelerate innovation through custom workshops that transform the way your organization works. Create and sustain a culture of innovation by applying these 5 innovation strategies. Innovation Series: Douglas Ferguson talks with Dr. Innovation Series: Douglas Ferguson talks to multidisciplinary designer Lisa Baird about her career journey, falling in love with the problem, the helpfulness of curmudgeonly people, and the deeper systems underneath user experiences.
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