Disruptive Innovation: The Theory Behind How It Works and Its Impact on Society

Disruptive innovation has the potential to change our world for the better, but it can also have negative consequences for certain individuals and industries who cannot adapt to the changes.

In order to leverage disruptive innovation, we must first understand what it is and how it works. What is the theory behind disruptive innovation and its impact on society — what are the positive and negative effects? Are there disruptive innovations that you should monitor and be ready to respond to?

Disruptive Innovation Theory

New products and services are disruptive when they offer lower prices and better quality than the products in the existing market. Business models are disruptive when they provide different ways of making money from customers, such as using advertising to make money instead of charging for their product (Google). Obsolescence of old products and services also qualifies as disruptive because it takes away the demand for what used to be in high demand (paper maps).

Disruptive innovation is a process or event that changes an industry or market by introducing a new product, service, or business model that differs significantly from and is often superior to the existing one.