What is disruptive innovation?

Disruptive innovation refers to a process by which a smaller company with fewer resources is able to successfully challenge established businesses. This often happens by leveraging new technologies to offer better solutions that meet the needs of both existing and new customers in ways that were previously unexploited.

The concept hinges on the ability to create services or products that may initially seem less advanced or lower-quality compared to existing offerings but eventually improve and capture significant market share. By focusing on underserved or overlooked markets, disruptive innovations can ultimately challenge and reshape industry norms, leading to a transformation in how products and services are delivered.

This understanding distinguishes disruptive innovation from other forms of innovation that might simply enhance existing technologies or cater to a specific market without challenging established players comprehensively. The critical aspect of leveraging technology signifies the potential to redefine competitive landscapes in various sectors.