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Disruptive Innovation

This deck explores how new technologies or business models can disrupt existing industries. Learners discover how disruptive innovations often start in overlooked markets before transforming entire sectors. The cards explain how companies adapt — or fail to adapt — to technological change.

Language
English
Theme
Markets & Competition
Category
Business & Decision

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Sample flashcards from this deck

Card 1

What is the key characteristic that makes an innovation disruptive in a market?

It changes the basis of competition by redefining what customers value.

Explanation

A disruptive innovation shifts which attributes matter most, forcing competitors to play by new rules.

Common mistake

Confusing any big technological advance with disruption, even when competition logic stays the same.

Card 2

In contrast to sustaining innovation, where does disruptive innovation usually begin competing?

In overlooked segments that incumbents consider low value.

Explanation

Sustaining innovation targets core, profitable customers, while disruption starts where incumbents pay little attention.

Common mistake

Assuming disruptive innovation always targets the most attractive customers first.

Card 3

What single customer segment do low-end disruptions initially target?

Over-served customers willing to accept lower performance for lower cost.

Explanation

Low-end disruptors attract customers who do not need the full performance of incumbent products.

Common mistake

Thinking low-end disruption focuses on customers demanding the very best features.

Card 4

What is the defining customer situation where new-market disruption starts?

Non-consumers gain a simple, affordable way to start using a product.

Explanation

New-market disruptors turn non-consumption into consumption by offering simpler, cheaper access.

Common mistake

Confusing new-market disruption with selling a nicer version to current heavy users.

Card 5

How does radical innovation differ from incremental innovation in scope of change?

Radical innovation fundamentally alters technology or business models.

Explanation

Incremental innovation refines what exists, while radical innovation creates a major break from the past.

Common mistake

Labeling any large feature update as radical without a real underlying shift.

Card 6

What makes a business model innovation disruptive even without new technology?

It captures value in a new way that incumbents struggle to copy profitably.

Explanation

New business models can upend who earns money and how, even with existing technology.

Common mistake

Believing disruption always requires a breakthrough technology instead of a new profit logic.

Card 7

In a disruptive change, what role does technology often play relative to the business model?

Technology enables the offer, while the business model enables industry reshaping.

Explanation

Technology makes new solutions feasible, but the business model determines how value is created and captured.

Common mistake

Focusing only on the tech and ignoring how money is made and shared.

Card 8

What happens when the innovation trajectory outpaces what mainstream customers demand?

Products exceed customer needs, creating room for simpler alternatives.

Explanation

When performance surpasses needs, customers can accept lower specs for lower cost or convenience.

Common mistake

Assuming customers endlessly value more performance regardless of added complexity or cost.

Card 9

What does performance overshoot of incumbent offerings create for disruptors?

A vulnerability where cheaper, simpler products become acceptable alternatives.

Explanation

Once incumbents overshoot, many customers no longer need all that performance and consider leaner options.

Common mistake

Thinking overshoot only strengthens incumbents by making their products unbeatable.

Card 10

Why do many disruptive entrants start in low-end or niche segments?

These segments face weak incumbent response because profits appear unattractive.

Explanation

Incumbents ignore or under-serve small or low-margin segments, giving disruptors room to grow.

Common mistake

Assuming disruptors must attack the most profitable segment first to succeed.

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