What do Disruptive Innovation terms coin?

Disruptive innovation is a term coined by Clayton Christensen in 1997 to describe a new technology or business model that fundamentally changes the way an industry operates. Disruptive innovations typically begin by serving a small, niche market that is ignored by established companies. As the innovation improves and gains traction, it eventually disrupts and displaces the existing market leaders.

One of the most well-known examples of disruptive innovation is the rise of digital photography. In the early days of digital photography, the quality of the images produced by digital cameras was inferior to that of traditional film cameras. However, digital cameras had several advantages over film cameras, including an instant preview of photos, the ability to easily share photos online, and the ability to delete unwanted photos. These advantages proved to be more appealing to a growing number of consumers, and eventually, digital cameras displaced film cameras as the dominant technology in the photography industry.

Another example of disruptive innovation is the rise of ride-sharing companies such as Uber and Lyft. These companies have disrupted the traditional taxi industry by using technology to connect drivers and riders in a way that is more efficient and convenient for both parties. They have also disrupted the car rental industry by making it possible for people to get a ride whenever they need one, rather than having to rent a car.

Disruptive innovations can also occur in non-technology industries. For example, the rise of discount retail stores such as Walmart and Target disrupted the traditional retail industry by offering a wide variety of goods at lower prices than traditional department stores. This made it possible for many people who could not afford to shop at traditional department stores to buy the goods they needed at affordable prices.

While disruptive innovation can be a powerful force for change, it can also be difficult for established companies to adapt to. Companies that are successful in one market can become complacent and slow to respond to new technologies or business models that threaten to disrupt their industry. This can lead to the decline or even failure of these companies.

In conclusion, Disruptive innovation is a powerful force that can change the way an industry operates and lead to the decline or failure of established companies. However, it can also open up new opportunities and create new markets for entrepreneurs and small businesses. Therefore it is important for companies to stay alert to new technologies and business models that could disrupt their industry, and to be prepared to adapt and evolve in response to these changes.