1. Explain Prof. Christensen’s Theory of Disruption in your own words.

Do not cut and

paste from elsewhere. (10 points)

Disruptive innovation can be said to be the most influential business idea of the twenty-first

century. According to my understanding, disruptive innovation refers to the underlying process

of small businesses achieving a competitive advantage over large and well-established

businesses(incumbents) through their market entry at the bottom of the market and their

subsequent continuous upward progression within the market. Five-fold process analysis is

critical in understanding disruptive innovation.

a. Big businesses substantially ignore the downward market needs through continually

innovating and developing both products and services to appeal to customers segments perceived

as demanding or profitable. 

b. New market entrants focus on these ignored market segments’ needs and do so at a

reduced cost than the incumbents.

c. Incumbents remain unbothered by the threat of new market entrants among its customer

segment. 

d. Continual persistence of entrants pushes them upmarket because they provide products

and services that appeal to the incumbents’ mainstream consumer segment.

e. Disruption occurs when entrant’s traction has begun attracting and taking over the

incumbents’ mainstream market segment consumers. 

2. Find a current example in biology, business, or global economics and explain it to your

peers. What type of disruption are they using (efficiency, configuration, offering,

experience, etc.) (10 Points)

 Notably, Spacemaker AI is a formidable player using innovation disruption in the real

estate industry. The Nordic company has transformed the norm of doing business in the

sector. Spacemaker AI utilizes an AI-augmented design and manufacturing software that

helps property developers, architects, and urban planners quickly develop the smartest

techniques of creating sustainable building infrastructure proposals with eco-friendly

designs. Accordingly, the underlying type of innovation disruption currently being

employed by Spacemaker AI is configuration through process innovation disruption,

through the development of new smarter ways of using AI-augmented design and

construction software to create proposals for sustainable building sites using eco-friendly

designs quickly.

3. How should your native country (US, India, China, etc.) truly change it's business

practices using Christensen's idea of the “capital has zero value...but people do have high

value” (10 points)

According to Christensen’s idea of the “capital has zero value...but people do have high value,”

the author argues that people have high value in investment instead of the value held by capital

in promoting investment and development. Intrinsically, Christensen substantiates that the

people’s minds make them hold high value because the mind possesses the inherent creative

ability capable of developing innovations that make a worthwhile investment for development—

in that sense, merely having capital for innovation does not break-even if the people lack the

innovative mindset to sustain the investments. Accordingly, in my native country of Guatemala, I

can implement Christensen’s idea of creating high value in people by establishing a school

curriculum keen on teaching innovative mindset skills to students at all levels to enhance their

minds’ creative ability for innovations.