Astoria Technologies (I) Pvt Ltd

Disruptive Innovation, a term of art coined by Harvard Professor Clayton Christensen, describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. Not just an expression for technology, it also implies a change in business processes and business model that upsets the status quo.

As companies tend to innovate faster than their customers’ needs evolve, most organizations eventually end up producing products or services that are actually too sophisticated, too expensive, and too complicated for many customers in their market. Companies pursue these “sustaining innovations” at the higher tiers of their markets because this is what has historically helped them succeed: By charging the highest prices to their most demanding and sophisticated customers at the top of the market, companies will achieve the greatest profitability.