The concept was developed by the American academic Clayton Christensen and his collaborators beginning in 1995, and has been called the most influential business idea of the early 21st century. In business theory, disruptive innovation is innovation that creates a new market and value network or enters at the bottom of an existing market and eventually displaces established market-leading firms, products, and alliances. 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 but sustaining) 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)ĭisruptive An innovation that creates a new market or enters at the bottom of an existing market by providing a different set of values, which ultimately (and unexpectedly) overtakes incumbents (e.g., the lower-priced, affordable Ford Model T, which displaced horse-drawn carriages) Sustaining An innovation that does not significantly affect existing markets.
An 1880 penny-farthing (left), and a 1886 Rover safety bicycle with gearing Christensen's Types of Innovation
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