Flashcards in Disruptive Innovation and User Centricity Deck (4)
What types of innovation are there?
Component change: Change, Strengthening
Yes, Radical Change Architectural change
No Modular Change Enhancing Change
Sometimes the innovation is not radical, it's about re-shuffling some dimension.
What is a disruptive innovation?
Innovation that helps create a new market and value network and eventually goes on to disrupt an exiting market and value network (over a few years or decades).
Initially they improve products or services in ways the market does not expect, typically first by designing for a different set of customers in the new market and later by lowering prices in the existing market.
What types of disruptive innovations are there?
a) Low-end Disruptive Innovation
Innovation is cheaper and lower in quality than existing products in core performance attributes.
Appeals to low-end price sensitive segment.
Over time it becomes mainstream.
b) High-end Disruptive Innovation
Better performance on dimensions that current customers do not greatly value.
Innovation appeals to a super-premium niche.
Over time, further developments improve the innovator's performance on the attributes mainstream customers value.