DISRUPTIVE OR DISCONTINUOS INNOVATION:

The word disruptive innovation first appeared in 1997 in one of the best seller THE
INNOVATOR’S DILLEMA. In this book one of the professor from Harvard Business School
Clayton Christensen investigated regarding innovations that were radical in nature and why
these were reinforced in incumbent’s position in some of the certain industry in contrary to
all the previous models like Henderson-Clark model can predict.
Innovation has become an important key to success in this ever advancing world. Innovations
provide a company with a competitive advantage. But on the other hand it also increases
uncertainty in the market place. Many organizations does not agree to give new innovations a
chance, therefore the more radical innovation it is, less likely to get acceptance by the
organizations and market. (Prahlad, 1994)
Innovation can be from sustainable or Incremental innovation to Disruptive or radical
innovation.
SUSTAINING VS DISRUPTIVE INNOVATION
Sustaining innovation helps established companies in improving their performance in existing
products and dimensions of mainstream of customer’s value. Whereas Disruptive innovation
have the characteristics of the products that traditional customer segments may not need.
These innovations might be simpler or cheaper and may have inferior quality if compared to
existing products.
Examples of disruptive innovations would be like Telephone which disrupted the Telegraph,
Semiconductors which in disrupted vaccum tubes, Steamships instead of sailing ships.
When we talk about innovation and growth, corporate faces a paradox. If we look at the
identification of visionary opportunity it is important for the long term growth prospects of an
enterprise, while on the other hand operational challenges, mandatory focus on quarterly
revenues for organisational growth are the short term objectives.
Hewlett-Packard got long history of introducing new technologies and products. Either they
have revolutionized the existing industries or have created totally new markets. Its inkjet
printer platform is an example of discontinuous innovations because this radical technology
replaced dot-matrix printing which in turn helped in creating desktop printer industry and it
propelled HP into the leadership position of a market of million dollars. (kaplan, 2008)

DISRUPTIVE INNOVATION
Disruptive innovation is also known as a “changes the game”. It kills an existing business and
also offers huge opportunities in terms of profit growth. A disruptive or radical innovation
can be defined as a process, product or service which offers reduction in cost or improvement
in performance that it change existing markets and make new ones.(fig 1) (Assink, m.. 2006)

Disruptive innovation can be defined as :

“A successfully exploited product, service or business model that significantly transforms the
demand and needs of an existing market and disrupts its former key players” ((Assink, m..
2006)

(Assink, m.. 2006)

This figure explains about the risk organisation faces while going for disruptive innovation.
When the company is at incremental innovation and in existing market they are at low risk
but as soon as they move new market via breakthrough innovation it started facing high risk.
DISRUPTIVE INNOVATION PROCESS
The following diagram explains about disruptive innovation process first of all concept of
innovation is to be defined. It has to be planned keeping in mind all the possible prospects
and outcomes. A proper framework has to be made so that it can be accepted by top
management. After being accepted it is then tested and prototyping and we then are able to
find out problems and criticism to work on that. Identifying the problem finding the
loopholes and then work on it and develop the project again.
(Assink, m.. 2006)

INHIBITORS OF DISRUPTIVE INNOVATION

Organisation encounters various external and internal barriers which in their way create right
capabilities and in turn support innovation. Barriers to disruptive innovation has been
classified in various cluster like the Adoption barrier, The Mindset Barrier, The Risk Barrier,
The Nascent Barrier, The infrastructural barrier. (kaplan, 2008)
Some of the inhibitors are:
Dominant design: Most of the market winners have become losers because they lost their
innovative edge. Most of the enterprise restricts themselves for incremental innovation, like
improvement in technologies, designs, these are called dominant design. They are in fear of
being overtaken by the companies which will introduce a disruptive innovation and in turn
can hit the market.
Organisation dualism : There may be conflict between incorporating disruptive innovation
and maintaining successful business which will enable company to be competitive. One of
the hardest job organisation face is to maintain balance between centralisation and
decentralisation. For a routine based job. Continuos improvements, hierarchical structure is
less effective for radical innovation development. The organisation mostly lack two fold
structure theres has to be consistency for incremental innovation and flexibility and
capabilities for the radical innovation. (Assink, m.. 2006)
Excessive Bureaucracy : It is often referred to large organisation who demand allegiance to
rules and they are not in favour of creativity because of which they are always slow to react
and are not willing to take risk as they have spend so much in maintaining their status quo
that they are not willing to stimulate disruptive innovation. Generic conservatism and
learning deficiency are one of the most sought after reasons of why large companies are not
ready to embrace radical innovation.
Preclude status quo: deviations are not always appreciated especially for large corporations
yet variety is sometime treated as negative in many big organisation. Many companies prefer
stable environment so that they can be market leaders. Yet dominant design , maintaining
standards can be barriers to so called innovation. (BECOMING A PART OF THE NEW
INNOVATION PARADIGM, 2006)
Lack of distinctive competencies: Core competencies sometime prove to be very useful but
can sometime become core regidities. In many organisation there is lack of management
ability to adapt specific skills needed for managing the challenges because of disruptive
technology. For radical innovation organisation has to face radical uncertainity. Which means
that company doesn’t even know which knowledge it is lacking in . Lack in the knowledge of
technology and managerial know how limits the capability of unlearning. (Prahlad, 1994)
Conclusion
Disruptive innovation is not a one time effort, its a continuos process as we saw in the
diagram It improves overall capability of organisation. As we saw several barriers on the way
of large corporation when they try to develop or commercialise on disruptive innovation.
These inhibitors are partly interdependent and interrelated.

REFERENCE
Assink, M.. 2006. Inhibitors of disruptive innovation capability: a conceptual model,
European Journal of Innovation Management, 9 (2). Pp. 215-233.
BECOMING A PART OF THE NEW INNOVATION PARADIGM. (2006). STRATEGIC
DIRECTION , 30-32.

kaplan, S. (2008). Discontinuos innovation and the growth paradox. strategy & leadership.
Prahlad, h. g. (1994). competing for future. boston: harvard business school press.