Disruptive Innovation and the Impacts of AI to Managers (Essay Sample)

Disruptive innovation is a term coined by Clayton Christensen, a Harvard Business School professor, to describe a type of innovation that disrupts an existing market by creating a new product or service that is simpler, more affordable, and more accessible than the existing offerings. Disruptive innovation often creates a new market or niche that was previously untapped or underserved.
Disruptive innovation can be contrasted with sustaining innovation, which refers to the type of innovation that improves upon existing products or services. Sustaining innovation typically focuses on improving the performance, features, or quality of existing products, while disruptive innovation creates entirely new markets or customer segments.
One example of disruptive innovation is the personal computer, which disrupted the mainframe computer industry by making computing power more affordable and accessible to the masses. Another example is the smartphone, which disrupted the traditional mobile phone market by providing a wide range of features and functionalities in a single device.
Disruptive innovation can be challenging for established companies, as it often requires a significant shift in business models and strategies. Incumbents may struggle to adapt to new markets or customer segments, or they may be reluctant to cannibalize their existing products or services. However, companies that are able to embrace disruptive innovation can often gain a significant competitive advantage and position themselves for long-term growth and success.