Disruptive Innovation

Definition of Disruptive Innovation

A type of innovation that creates a new market and value network, displacing established market-leading firms, products, and alliances.

Explanation of Disruptive Innovation

Disruptive innovation refers to a breakthrough development that significantly alters or displaces existing products, services, or business models. This type of innovation typically starts in niche markets, offering simpler, more affordable, or more accessible solutions than established offerings. Over time, disruptive innovations improve and gain broader acceptance, eventually transforming industries and creating new market leaders. Examples of disruptive innovation include the rise of digital photography, which replaced traditional film cameras, and the emergence of streaming services, which disrupted the television and movie industries. Embracing disruptive innovation requires businesses to anticipate market changes, invest in new technologies, and be willing to adapt their strategies to stay competitive.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.