Disruptive Innovation – Investor Connect Disruptive Innovation
Disruptive Innovation
The disruptive innovation mental model describes a simple innovation starting at the bottom of a market and then moves up the curve to overcome the industry incumbents.
This mental model was first defined by Clayton Christensen in his book The Innovator’s Dilemma.
Industries with expensive products are overtaken by companies operating in overlooked sectors but through innovation overtake the industry.
The personal computer is an example of disruptive innovation.
It started out as a basic machine that provided only simple solutions.
The more expensive mini computers and mainframes were too expensive for non-business applications.
It was used for gaming when there were no business software applications available.
Over time, the personal computer grew in performance and took on business use cases.
It was lower cost and more available to the average person and small business.
Disruptive innovations make products more affordable and available to a wider range of users.
Consider using disruptive innovation to launch your product or service.
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Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.