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What are the types of Innovations?
Innovation can be of four types-
- Sustaining
- Evolutionary
- Revolutionary
- Disruptive
What do you mean by Disruptive innovation?
As the name suggests, disruptive innovation means disrupting the existing market and networks by creating a new market and network. It displaces the recognized market firms, products and associations. Existing market leading companies do not produce such innovation, it is created by outsiders.
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Risk in Disruptive process-
The risk associated with disruptive process is higher compare to other forms of innovations, but once it is positioned in the market, it attains a much faster diffusion and advanced degree of influence on the established markets.
Example of disruption-
- The history of computing was ‘one computer, many persons’ and its letdowns and in sufficiencies was clear.
- Then the era of personal computing emerged and became powerful i.e., the concept of ‘one person, one computer’. It proved inadequate after a point when it was lacking in generating knowledge.
- Then came the era of networking and distributed computing i.e., ‘one person, many computers’. Thus, this proves that technology authorizes individuals rather than outside hierarchies.
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How disruptive innovators achieve success?
Because the investors utilize their business’s expandable core, they achieve success. The term expandable core refers to the ability of a business to progress and influence its advanced business model.
Options available when disruptive innovation threatens market-
- Hunt The Market-
To continue selling products, company should bring a change in their product. To survive and prosper in market, development and innovation are necessary, though companies suffer during such transition.
- Find New Markets Based On Proficiency-
When a company gets to know the future prospects it started manufacturing the product which will give them a place in market with their competitors.
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Disruptive innovation arises many questions like-
- What actions can be taken by the rivals?
- What new technology could possibly rescind business model?
- What new legislations could destroy business?
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