Innovation: Difference between revisions

One framework proposed by [[Clayton Christensen]] draws a distinction between sustaining and [[disruptive innovation]]s.<ref>{{Cite news|last1=Bower|first1=Joseph L.|last2=Christensen|first2=Clayton M.|date=1 January 1995|title=Disruptive Technologies: Catching the Wave|work=Harvard Business Review|issue=January–February 1995|url=https://hbr.org/1995/01/disruptive-technologies-catching-the-wave|access-date=16 August 2020|issn=0017-8012}}</ref> Sustaining innovation is the improvement of a product or service based on the known needs of current customers (e.g. faster microprocessors, flat screen televisions). The sustaining innovation is a continuous improvement over existing products in order to reap more profit from the existing customers. For example, shift of Desktop Computers to Laptop Computers then shifting to [[Virtual machine|Virtual Machines]] ([[Cloud computing|Cloud Computing]]). Disruptive innovation in contrast refers to a process by which a new product or service creates a new market (e.g. transistor radio, free crowdsourced encyclopedia, etc.), eventually displacing established competitors.<ref>{{Cite news|last1=Christensen|first1=Clayton M.|last2=Raynor|first2=Michael E.|last3=McDonald|first3=Rory|date=1 December 2015|title=What Is Disruptive Innovation?|work=Harvard Business Review|issue=December 2015|url=https://hbr.org/2015/12/what-is-disruptive-innovation|access-date=16 August 2020|issn=0017-8012}}</ref><ref>{{Cite web|title=Disruptive Innovations|url=https://www.christenseninstitute.org/disruptive-innovations/|access-date=16 August 2020|publisher=Christensen Institute|language=en-US}}</ref> According to Christensen, disruptive innovations are critical to long-term success in business.<ref>{{cite journal|author=Christensen, Clayton & Overdorf, Michael|year=2000|title=Meeting the Challenge of Disruptive Change|url=https://hbr.org/2000/03/meeting-the-challenge-of-disruptive-change|journal=Harvard Business Review}}</ref>