WikiNow lets you discover the news you care about, follow the topics that matter to you and share your favourite stories with your friends.

© WikiNow

A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995. In the early 2000s, "significant societal impact" has also been used as an aspect of disruptive innovation.

The free, online encyclopedia Wikipedia was a disruptive innovation that had a major impact on both the traditional, for-profit printed paper encyclopedia market (e.g., Encyclopedia Britannica) and the for-profit digital encyclopedia market (e.g., Encarta). The English Wikipedia provides over 5 million articles for free; in contrast, a $1,000 set of Britannica volumes had 120,000 articles.
Types of Innovation
Sustaining
An innovation that does not significantly affect existing markets. It may be either:
Evolutionary
An innovation that improves a product in an existing market in ways that customers are expecting (e.g., fuel injection for gasoline engines, which displaced carburetors.)
Revolutionary (discontinuous, radical)
An innovation that is unexpected, but nevertheless does not affect existing markets (e.g., the first automobiles in the late 19th century, which were expensive luxury items, and as such very few were sold)
Disruptive
An innovation that creates a new market by providing a different set of values, which ultimately (and unexpectedly) overtakes an existing market (e.g., the lower-priced, affordable Ford Model T, which displaced horse-drawn carriages)

A disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market leading firms, products and alliances. The term was defined and phenomenon analyzed by Clayton M. Christensen beginning in 1995. In the early 2000s, "significant societal impact" has also been used as an aspect of disruptive innovation.

Not all innovations are disruptive, even if they are revolutionary. For example, the first automobiles in the late 19th century were not a disruptive innovation, because early automobiles were expensive luxury items that did not disrupt the market for horse-drawn vehicles. The market for transportation essentially remained intact until the debut of the lower-priced Ford Model T in 1908. The mass-produced automobile was a disruptive innovation, because it changed the transportation market, whereas the first thirty years of automobiles did not.

Disruptive innovations tend to be produced by outsiders and entrepreneurs, rather than existing market-leading companies. The business environment of market leaders does not allow them to pursue disruptive innovations when they first arise, because they are not profitable enough at first and because their development can take scarce resources away from sustaining innovations (which are needed to compete against current competition). A disruptive process can take longer to develop than by the conventional approach and the risk associated to it is higher than the other more incremental or evolutionary forms of innovations, but once it is deployed in the market, it achieves a much faster penetration and higher degree of impact on the established markets.

Tribeca Disruptive Innovation Awards 2014 - Full Show

Full coverage of the 2014 awards presentation. Based on the studies of Harvard Business School professor Clayton M. Christensen and helmed by Tribeca's ...

Bill Simmons - Tribeca Disruptive Innovation Awards 2015

Honoree Bill Simmons at the 6th annual Tribeca Disruptive Innovation Awards TDIA was held Friday, April 24th, 2015 at Borough of Manhattan Community ...

WITNESS Is Presented The Tribeca Disruptive Innovation Award By Perri Peltz

From http://www.tribecafilm.com/tribecaonline/live/tribeca_disruptive_innovation_awards-film42925.html Tribeca Film Festival, in association with Harvard's ...

Red Bull Music Academy - Tribeca Disruptive Innovation Awards 2014

Clip of Red Bull Music Academy (Torsten Schmidt & Many Ameri), 2014 Honorees who disrupted music culture with the RBMA pop-up global music festival ...

Tribeca Disruptive Innovation Awards 2016 - @ArtShrian with @myNewYorkeye #TDIA2016

http://www.mynewyorkeye.com/awards-and-festivals-news/tribeca-disruptive-innovation-awards-2016-tdia2016 Disruptive Innovation Awards 2016 winners ...

Craig Hatkoff, Irwin Kula & Eric Raymond - Tribeca Disruptive Innovation Awards 2014

Clip of TDIA chief curator & founder Craig Hatkoff joined by Rabbi Irwin Kula and Eric Raymond to demonstrate the "breaking of the glass" as a spiritual ...