Disruptive innovation can challenge conventional wisdom in business from "summary" of The Innovator's Dilemma by Clayton Christensen
Disruptive innovation has the power to upend traditional business practices, challenging established norms and beliefs within an industry. It introduces new technologies or business models that may initially seem inferior or irrelevant to existing market leaders. These disruptive innovations often cater to overlooked or underserved customer segments, gradually gaining traction and improving over time to eventually disrupt the established players in the market. At first glance, disruptive innovations may not meet the performance standards valued by mainstream customers or industry incumbents. However, they offer unique benefits that resonate with a different set of customers, typically those who prioritize convenience, affordability, or accessibility over traditional quality metrics. This creates a dilemma for established companies, as they are often hesitant to pursue disruptive innovations that deviate from their current business models and target markets. Conventional wisdom in business dictates that companies should focus on sustaining innovations that enhance existing products or services to meet the demands of their most profitable customers. However, this approach can leave companies vulnerable to disruptive competitors that are able to gain a foothold in the market by serving the needs of underserved customers. Over time, these disruptive innovations can improve and expand their capabilities, posing a significant threat to incumbent firms that failed to recognize their potential early on. The Innovator's Dilemma highlights the importance of recognizing and responding to disruptive innovations before they become existential threats to established companies. By understanding the principles of disruptive innovation and the factors that contribute to its success, companies can adapt their strategies to embrace change rather than resist it. This requires a willingness to experiment with new ideas, explore emerging markets, and prioritize long-term growth over short-term profits.- Disruptive innovation has the ability to challenge conventional wisdom in business by introducing new paradigms that may initially seem inferior or unappealing to mainstream customers. However, by understanding the dynamics of disruptive innovation and being open to change, companies can position themselves to thrive in an increasingly competitive and unpredictable business environment.
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