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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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