Disruptive Innovation - What Are We Actually Talking About? - aumentoo

The article delves into the management theory of disruptive innovation, which explains how companies gradually create better and more expensive products over time, leaving a gap in the lowest customer segment. This gap is then filled by disruptive startups with new, functional, and oftentimes cheaper technologies, which eventually move up the market due to performance improvements, endangering established firms. However, there is controversy in business practice as some argue that disruptive innovation cannot explain platform- or community-based business models. Despite the debate, disruptive innovation continues to be relevant for managers in categorizing market entrants and developing strategies.