The concept of sustaining innovation relates to ongoing steady, gradual incremental improvement in a product or service, a good example would be an Apple iPhone 15 versus a 14. Disruptive Innovation relates to creating a new service or break through product that results in the initiation of a new market via reimagining or changing existing markets.
In studying Christensen, Raynor and McDonalds HBR article ‘What is disruptive Innovation’, the article states that:
“Disruptive innovations originate in low-end or new-market footholds”.
Furthermore, it states:
“In our experience, too many people who speak of “disruption” have not read a serious book or article on the subject”.
Respectfully, the author asks the reader to allow a potential challenge to their thesis. In the opinion of the author the concept of disruptive innovation could be far broader than the constraints imposed by the definition in the article. Is it possible that the concept of disruptive innovation may have surpassed the initial academic definition? Indeed, it is notable that in the article the following observation was made:
“If disruption theory is correct, Tesla’s future holds either acquisition by a much larger incumbent or a years-long and hard-fought battle for market significance”.
Nearly ten years on from the article, neither is correct, such is the disruption by Tesla that is has completely changed the automotive world, outselling global brands by a multiple and becoming a battery manufacturer for other brands. Perhaps a broader view could define disruptive innovation thus:
“Satisfying a completely new identified customer need in such a manner as to create an entirely new market of significant scale”.
Key SentinelReward Lesson: Arguably we are only at the very early stage of true disruption. Companies like Tencent are wholly reimagining the modern consumer landscape via Super App platforms offering services as diverse as Insurance to Gaming. Watch this space.