Innovation Project Management

9 Disruptive Innovation

• Learning Objectives for Project Managers and Innovation Personnel
• To understand what is meant by disruptive innovation
• To recognize the types of disruptive innovation
• To recognize the skills needed to work on disruptive innovation projects

INTRODUCTION

In today's business environment, we are faced with challenges and crises due to competition, unstable economies, and sustainability. “Business as usual” is no longer an option for survival, nor is the idea that “we will build it and they will come.” Innovations will occur, and many newcomers will disrupt how incumbents conduct their business.

There are many forms of disruptive innovation. Not all disruptive innovations are destructive. Each form may require a different strategic approach and the use of different tools. Failing to understand these differences reduces the chances of success.

There are several categories of innovation, as discussed in Chapter 2. Christensen (1997) classified innovation in two categories:

• Sustaining innovation. An innovation that does not significantly affect existing markets. It may be either:
  • Evolutionary: An innovation that improves a product in an existing market in ways that customers are expecting
  • Revolutionary (discontinuous, radical): An innovation that is unexpected, but nevertheless does not affect existing markets
• Disruptive innovation. An innovation that creates a new market by providing a different set of (business) values, which ultimately (and unexpectedly) ...