Disruptive innovation represent innovations with significant impacts on industries and markets. They introduce substitutes to existing products, processes or services, generally offered at a lower price. A disruptive innovation corresponds to a radical technological change or a revolutionary technological change.
Throughout its research published in the Harvard Business Review by Bower and Christensen, The concept of disruptive innovation technologies has revealed how disruptive technologies are potentially destructive to established companies though they have been found to offer huge possibilities of market for innovative companies.
- Disruptive innovations have become an important source of technological entrepreneurship.
- Disruptive innovations have several strategic impacts on jobs and economic activities of nations and industries.
- Disruptive innovations are becoming a key factor in the competitiveness industrialized countries. The innovation management play more than never a strategic role in the success of industries and ecosystems.
- Disruptive innovations introduce radical new products, processes or organizational initiatives in existing business models and transcend the scope of established firms. It also radically modifies the business configuration and the governing rules of innovation ecosystems.
- For instance, disruptive innovations could replaces within a few years the dominant players of an industry with a new strategic group of entrepreneurial technological firms.
"Disruptive innovations could displace the center of gravity of an industry and alter the position of corporations in the value chain of their industry."