The Journal of Consumer Marketing; Winter 1992; 9, 1; ProQuest Business Collection pg. 61
Disruptive innovations are innovations aimed at improving products or services in ways that market does not expect. This may be achieved through bringing in innovations whose end product is lower priced or by designing a product for a different set of consumers. An innovation that is disruptive allows a whole new population of customers to access a product or a service that was historically accessible to rich customers only (Christensen, 1997).
Long term success of companies calls for disruptive innovations, which either create new markets or reshape the existing ones by delivering relatively simple, convenient, cheap innovations to a set of customers who have been ignored by industry leaders. (Mark, 2005). Historically, companies dominating given markets have had no interest in pursuing such innovations because of they believed that these innovations do not address needs of their best customers and also due the belief that such innovations may end up bringing low profit margins (Mark, 2005). This can be attributed to the fact that such companies innovate faster than customers lives change. Consequently, they end up making products that are too good, too expensive or too inconvenient for many customers (Christensen, 1997). However, it is only through pursuing sustaining innovations that companies can welcome new entrants that can provide simpler, less expensive and more convenient products to group of customers who are not interested in keeping up with the accelerated pace of innovation change (Christensen, 1997).
Innovations fall onto a continuum from evolutionary to revolutionary. Evolutionary innovation is important for sustainable mainstream markets as it focuses on improving existing products and services to meet the ever growing demands of customers (Hill and Jones, 1998). Markets are relatively low for evolutionary innovation because the focus is essentially on the same segment of customers. On the other hand, revolutionary breakthroughs lie at the core of wealth creation and serve as a basis for future products, technologies, services and industries (Christensen, 1997). Disruptive Innovation describes an innovation that is highly revolutionary in which customers are provided with products and services that were not available to them before. It represents a new paradigm of customer offering that can generate new net wealth whilst transforming or displacing some already established markets, forcing established companies to lose market share and collapse (Christensen, 1997). For this reason, the market and environmental uncertainty is high.
Low end disruption is said to take place when the rate of product improvement exceed the rate of customer’s adoption to the new performance. The product performance in such a case overshoots the needs of certain customers. This calls for a disruptive technology into the market to provide a product with lower performance which exceeds requirements of certain customers and gain a foothold in market (Mark, 2005).
In low end disruption, the disruptor focuses on satisfying the least profitable customer, who is reluctant to pay premium for product improvement. When the disruptor gains success in this customer segment, it then seeks to improve its profit margins. In order to gain profit margins, the disruptor must enter customer segment where customers are willing to pay more for better quality. For this quality product to be achieved, the disruptor must bring innovation (Christensen, 1995).
Use of Disruptive Theory in Schools during Teaching Practices
Lack of innovation in education sector has undermined its effectiveness and it is no longer hope for future generations. Skills being offered in many schools do not nurture international leadership and market (Katrina, 2010). It is only revolutionary change that can disrupt the flawed