Question

Answer the follwing questions:

1. Define disruptive innovation.

2. Define sustaining innovation.

Answer 1

Disruptive innovation

Disruptive Innovation refers to a technology whose application significantly affects the way a market or industry functions. For example. The Internet has significantly altered the way the companies did business and has negatively impacted the companies (small scale, say) that were unwilling to adopt it.

A disruptive innovation eventually disrupts an existing market and value network (over a few years or decades), thus displacing an earlier technology.

Sustaining innovation

A sustaining innovation is an incremental innovation that enables or sustains an existing product. It is a slow incremental change to the benefit of the people i.e. it comes from listening to the needs of customers in the existing market and creatin