Definition of Disruptive Innovation

Low-End Disruption

New-Market Disruption





Clayton Christensen coined the term “Disruptive Innovation” as follows:

“Disruptive Innovation describes a process by which a product or service initially takes root in simple applications at the bottom of a market – typically by being less expensive and more accessible – and then relentlessly moves upmarket, eventually displacing established competitors.”



JD Meier

Disruptive innovation is a process where a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up the market, and eventually displaces established competitors.

JD Meier



Low-End Disruption

Low-end disruption is when businesses come in at the bottom of the market with a “good enough” product at a cheaper cost. This is disruptive innovation where a smaller company with fewer resources moves upmarket and, ultimately, captures the incumbents’ customers, who have adopted it into the mainstream.




New-Market Disruption

This is market-making disruption. New-market disruption is when businesses create a new segment in an existing market to reach underserved customers. These businesses basically turn products and services that were once expensive and unattainable into something affordable and accessible to a larger population of people.


Radical vs. Incremental Innovation

RPM 7 Challenges


Disruptive Financial Services




JD Meier

The big difference between the low-end disruption and new-market disruption is that low-end disruption focuses on over-served customers, while new-market disruption focuses on underserved customers.

JD Meier



According to Christensen:

“If you come to the bottom of the market, you create a situation where the giant company is motivated to flee, rather than fight you. They won’t fight you, because there’s no profit in it, and it’s very hard for companies to pursue opportunities where there’s no profitability... What happens when the incumbents are so focused on pleasing their most profitable customers that they neglect or misjudge the needs of their other segments.”


Radical Innovation


Radical vs. Incremental Innovation


7 Challenges





"Low-end disruption doesn’t create new markets, you just gain market share against the old. New-market disruption competes against the original players by going after new customers that these companies aren’t interested in, selling them a simple product.”



JD Meier

After all, anything that enters a market and interrupts or changes the normal progress or activity of something could be seen as “disruptive”.

JD Meier


Steve Jobs on innovation

Here's to the crazy ones!... Innovation distinguishes between a leader and a follower.

Steve Jobs



Larry Page innovation entrepreneurship quotes Google

It is often easier to make progress on mega-ambitious dreams since you have little competition.

Larry Page



Elon Mask innovation quotes

I'm interested in things that change the world or that affect the future and wondrous.

Elon Musk


Vadim Kotelnikov innovation quotes

In radical innovation, every step forward is a step into terra incognita where opportunities are guides and failures are teachers.

Vadim Kotelnikov, founder of 1000ventures - personal logo  Vadim


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Proactive and Reactive Innovation

Business Innusual  ▪  Systemic Innovation

Harmonious Innovation  ▪  Holistic Innovation


Harmonious Mega-Innovation

Innovation Management

Synergy Innovation  ▪  Idea Implementation

Don't Listen to Experts