BU479 Chapter Notes - Chapter 12: Nibble, Headon, Disruptive Innovation
Document Summary
The issue: the ideas summed up in the phrase disruptive innovation is in danger of losing its usefulness because they"ve been misunderstood and misapplied. The response: the leading authorities on disruptive innovation revisit the central tenets of disruption theory. The bottom line: we can"t manage innovation effectively if we don"t grasp its true nature. Uber is clearly transforming the taxi business in the united states. According to the theory, the answer is no: uber"s financial and strategic achievements do not qualify the company as genuinely disruptive although the company is almost always described that way. Here are two reasons why the label doesn"t fit. Disruptive innovations originate in low-end or new-market footholds. Disruptive innovations are made possible because they get started in two types of markets that incumbents overlook. Lowend footholds exist because incumbents typically try to provide their most profitable and demanding customers with ever-improving products and services, and they pay less attention to less-demanding customers.
