Disruption occurs when established companies ignore new technologies from "summary" of The Innovator's Dilemma by Clayton Christensen
Disruption is a phenomenon that often catches established companies off guard. It occurs when these companies focus on serving their existing customers with better products or services, while ignoring the potential of new technologies that may not seem profitable or relevant at the time. This shortsightedness can lead to their downfall in the long run. One of the main reasons why established companies tend to overlook disruptive technologies is because they are heavily invested in their current business model. They have built their success on serving their core customers with high-quality products or services, and any deviation from this formula is seen as a risky venture. As a result, they are hesitant to explore new technologies that may not align with their current strategy. Meanwhile, disruptive technologies often start off serving niche markets or lower-end customers that are not attractive to established companies. These technologies may not offer the same level of performance or features as existing products, but they have the potential to improve over time and eventually disrupt the market. By the time established companies realize the threat posed by these technologies, it may be too late for them to catch up. The key to surviving disruption lies in being open to exploring new technologies and business models, even if they do not fit into the current strategy. Companies need to be willing to experiment with different approaches and be prepared to cannibalize their existing products or services if necessary. This requires a willingness to take risks and a long-term perspective on innovation.- Disruption occurs when established companies fail to adapt to new technologies that may initially seem inferior or unprofitable. By the time they realize the potential of these technologies, it may be too late for them to respond effectively. To avoid this trap, companies need to be open to exploring new opportunities and be willing to disrupt their own business model if necessary.
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