Theory of Xxxxxxx X Sample Clauses

Theory of Xxxxxxx X. Xxxxxxxxxxx 4

Theory of Xxxxxxx X. Xxxxxxxxxxx These days, the literature about “disruptive innovation” is numerous. It was Xxxxxxx X. Xxxxxxxxxxx who first proposed the disruptive innovation theory in his influential book ‘The innovators dilemma’. In this bestseller, X. Xxxxxxxxxxx focusses on providing a basic theory of disruptive technologies. A brief explanation of the theory is as follows: A disruptive technology is a technology with which an entrant in the market is able to challenge the incumbent’s technology over time. These technologies are initially inferior to the incumbent’s technology on the performance aspects valued by the mainstream market, but offer non-standard functionalities that are attractive to overlooked customers by the incumbent. Once established a foothold in that niche market, the disruptive technology improves gradually on the performance aspects valued by the mainstream market. Over time, the disruptive technology catches up on the these performance aspects while having the advantage over the incumbent’s technology on its attributes which gave it initial success in the niche market. The incumbent’s customers see the value of the disruptive technology and start adopting it, posing a serious threat to the incumbent of dramatically losing market share. (Xxxxxxxxxxx, Xxxxxx, & Mcdonald, 2015) Figure 1 provides a visualisation of this theory. This basic theory of disruptive technologies was later expanded to include other disruptive innovations such as radical product innovations and even business model innovations. Business model innovations do not offer a new product or service to the market, but redefine an existing product or service and the way it is introduced to the customer. This different business model attracts new customers by emphasizing product or service dimensions that are attractive to them. Amazon competing in the book retail industry and EasyJet in the airline industry are good examples of business model innovations. Radical product innovations create ‘new to the world products’. These new products radically change the habits and behaviours of the customers and undermine the competences and assets of the incumbent firms. (Xxxxxxxx, 2006) Instead of using ‘disruptive innovation’ as an overarching term for these different innovations, Xxxxxxxx argues that, despite all being disruptive in nature, they cannot be considered under one single term, but have to be treated separately, due to the very different challenges they pose to incumbents. Another ref...