Disruptive innovation

Sustaining innovations are typically innovations in technology, whereas disruptive innovations cause changes to markets. For example, the automobile was a revolutionary technological innovation, but it was 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. The automobile, by itself, was not. The current theoretical understanding of disruptive innovation is different from what might be expected by default, an idea that Clayton M. The work of Christensen and others during the 2000s has addressed the question of what firms can do to avoid displacement brought on by technological disruption. History and usage of the term[edit] The term disruptive technologies was coined by Clayton M.

http://en.wikipedia.org/wiki/Disruptive_innovation

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