Disruptive Innovation

The term 'Disruptive Innovation' was given in the year 1995 by
Clayton M. Christensen and is regarded as one of the most
influential and important innovations of the 21st century.
Disruptive Innovation refers to the innovation which helps in
creating new market and value network in place of the existing
market and value network which leads to the disruption of the
market-leading firms, alliances, and products that had already
been established earlier. Each and every innovation cannot be
regarded as a disruptive innovation even if they are bringing
about change in the existing system.
In accordance with the 'Theory of Disruptive Innovation'
disruptive innovation has been classified into two types-
"low-end disruption" and "new-market disruption." The low-end
disruption is a type of disruption which occurs when the
changes within the product take place at a higher rate than the
customers are able to adapt to the changes made within the
product. The new-market disruption occurs when a new
product emerges in the market that has not been served
earlier by any of the incumbents of the industry and which fits
itself within the new or emerging market segment.
The process of disruptive innovation is considered important for
business leaders because of the benefits that it provides to the
customers of the market. A disruptive innovator provides the
products at a favorable price to its customers as well as years
at creating a new and improvised value of his/her product by
making additional changes in the product. The process of
disruptive innovation has been proven beneficial for executives
also.
The first disruptive innovation was encountered by the human
beings in around 10,000 BC in the Middle East, and since
then it has continued to take place.