Disruptive Innovation Theory and its Application in Historical and Future Development Contexts

MANAGING INNOVATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Innovation Theory.......................................................................................................................1
Application of Disruptive innovation theory in historical development context........................4
Application of Disruptive innovation theory in future development context..............................7
CONCLUSION................................................................................................................................8
REREFENCES..............................................................................................................................10

INTRODUCTION
Innovation can be defined as a new idea of creative thoughts or new imagination in form
of devices, products or method. Innovation is one of those things that can helps an organization
gain competitive advantage, attract new customers, sustain within the existing market (Taylor
Buck and While, 2017). In fact, it is considered as a factor which is required to be focused upon
by companies so that they can sustain within the tough competitive environment. This
assignment will lay emphasis upon Disruptive innovation theory, applications of this theory in
historical development context and in future development context.
MAIN BODY
Innovation Theory
Innovation is one of the most important things which is required to be focused upon
today by every organization as it helps companies to grow, expand, gain competitive advantage.
Organizations can bring innovation within their business by focusing upon identifying future
needs of their customers (Flavin and Quintero, 2018). There are various kind of innovative
theories that are required to be known by organizations so that they can bring changes within
their products and services. Usage of these innovative theories helps an organization to
implement and develop new innovative products in a proper manner.
Disruptive innovation theory overview
One of the major innovative theory which is used by organizations is Disruptive
innovation theory. It is one of the most important innovation theories of innovation which is
majorly misunderstood. Disruptive innovation can be defined as a kind of theory that focuses
upon a kind of innovation that can help an organization to create a new market, network values
which eventually can help a firm to disrupt existing network values and market by displacing
well established market of leading firms, alliances and products (Pandit and et. al., 2018). This
theory provides an example and also helps in explain how well- established firms can get
overtaken by other organizations even by smaller ones. This reason helped in introducing the
concept of disruptive innovation. People often misunderstand this theory because of which they
become a victim of their own success. Many times, this theory is criticized for its shortcomings,
despite of the fact that they have already been addressed.
Disruptive innovation theory concept
1

Disruptive innovation theory is basically used by organizations for innovating a new
product which more affordable, easy to use and resolve their major problems or issues associated
with a particular product or service. This theory is based upon few concepts that helps in making
it a successful theory. First is enabling technology, in which invention or innovation that makes a
product more affordable and accessible to wide population is the first concept that helps in
making sure success of a product (Schwalbe, 2018). Second is innovative business model in
which a business model should be developed that targets non consumers i.e. people who did not
use the product previously. It helps an organization to extend their overall market and consumer
base. Last is coherent value network i.e. when a disruptive technology prospers all the
stakeholders are better off.
This theory basically focuses upon a phenomenon in which a simple innovation can
transform existing market or introduce a simple, convenient, affordable product or service as
compared to products that are complicated and are of high cost. Disruptive innovation first of all
focuses upon a niche market that might appear unattractive or inconsequential to the industry but
innovation of new idea or product can completely transform or redefine the industry (Winskel,
2018). One of the classic examples of this theory is innovation of Vacuum Cleaners within
Vacuum bags by Dyson Group of companies. James Dyson focused upon Vacuum Cleaners as it
was one of the most unattractive products that was only manufactured by companies to fulfil
needs of the customers and was used by customers to simplify their dusting and cleaning needs
despite of a complicated process of operating complex traditional Vacuum Cleaners.
Manufactures simply copied each other’s solution of manufacturing Vacuum Cleaners and when
James Dyson offered an innovative solution to existing organizations, his solution was rejected
and that was the time he targeted Vacuum Cleaners and manufactured his own Vacuum Cleaners
that did not required Vacuum bags.
2