Disruptive Innovation: Individual Activity

What is Disruptive Innovation?

Disruptive innovation is often associated with entrepreneurs working at the fringes of mainstream markets where they identify groups or
market segments whos’ needs are not being met. These needs are a problem for existing organizations because the needs of such ‘fringe
groups’ are viewed as irrelevant to their mainstream activities and thus there is a tendency for them to be ignored and dismissed as not
important to the future success / sustainability of the organization. However, working on the fringes of these mainstream markets and
identifying these emerging different needs creates novel innovation options. Sometimes these novel options that have relevance to the fringe
will begin to be of interest to the mainstream. Tidd and Bessant (2018: 200). However, Christensen, Rayner and McDonald (2015. 45) argue;

“Many researchers, writers, and consultants use “disruptive innovation” to describe any situation in which an industry is shaken up and
previously successful incumbents stumble. But that’s much too broad a usage.”

For a greater insight into this topic and before you begin the individual activity please read the following Harvard Business Review paper
(provided for you in this folder) and the Guardian Newspaper Article authored By Daub (2020):

1. Christensen, C., Rayner, M., and McDonald, R. (2015). Disruptive Innovation, The Harvard Business Review, December: 45-53
2. Daub, A. (2020). The Disruption Con: Why Big Tech’s Favorite Buzzword is Nonsense, The Guardian, September 24th, 2020. Available at
https://www.theguardian.com/news/2020/sep/24/disruption-big-tech-buzzword-silicon-valley-power

Task

Anticipated time: 3 hours to read the papers etc provided and 3 hours to complete the task.

Using the arguments presented in both Christensen, Rayner and McDonald (2015) paper and Daub’s Newspaper article (2020):

A. Develop Table 1: Disruptive or Not? (below) and outline and justify if and how the four organizations presented can claim the title
of disruptive innovators.
B. In a short paragraph no more than 60 words present your own unique definition of Disruptive Innovation
 Present both your findings by uploading your work onto discussion forum 3 By 9am Monday 11 th October : Disruptive Innovation by 5pm on.
Once you have done this check your answers with your classmates and compare and contrast your thoughts with theirs.
Table 1: Disruptive or Not?
Company Innovation
Service Now The company recognized the need to
double its efforts by integrating IT to
meet the expectation of the clients. They
even became more inclined to surpass
those needs. To date, it can be noted
that servicenow.com has made an
immense stride towards embracing
technological service management. The
step of making technology the integral
part of service delivery within the
Service-now Company has made it come
forth like a pro in the Gartner's Magic
Quadrant too.
Airbnb Like service now or Uber, this company
has taken note of the growth in
technology and embraced it. Contrary to
the methods employed by its
competitors, Airbnb does not own the
properties listed; instead, it rents them
Disruptive Justification, supported by Christensen, Rayner and McDonald
Innovation (2015) paper.
(Yes /No)
YES Since the onset of this theory, it has proved to be very effective
for entrepreneurial businesses that are vision-oriented and
willing to commence upward from the root levels. Rayner et al.
(2015) insist that the success of this model is realized by staying
focus. For our case, Service-Now.com ventured much into IT
development in its service delivery, which came when other
organizations were only inclined to increase the cost of service
to attract more funds from the high-paying clients. By this
means, they could shake up the previous industries and leave
them stumbling as they rose to market recognition. Pg. 46
YES Rapid growth and development is the apparent outcome of
employing the disruptive model in the competitive economy,
especially for new upcoming entrepreneurial businesses.
Rayner et al. mention that rapid disruptions do not necessarily
vary from any other, the causal mechanism is similar, and
conceptually do not demand any obscured response.
 then earns a commission out of the
bookings. Such is a disruptive model to
the other established accommodation
hotels.
Expresso The Espresso Mushroom Company is a
Mushroom perfect example of how a simple idea
Company can be turned into a flourishing
innovative business. We know that the
challenging part of starting a business
from zero is the initial capital. The
founders, Alex and Robbie Georgiou,
took note of the procedures performed
at the coffee bean plant and focused on
using the by-products to breed the
mushroom. Who would have known that
this was the model to land in their
current position? They invested in
simplicity and easily won the favour of
many clients.
Forest Green The team has grown to fame, reaching
Rovers Football an audience of up to 3 billion via the
Club local and international press. The club
has sustained its strength through the
pure vegan diet that gives it natural
vigour and ambassadors of nature's
Additionally, it is a grave misinterpretation to imagine that the
strategies adopted require high-profile entrance. (pg. 53)
Airbnb began with only two customers, one of the founders,
yet they now operate worldwide. By this model, they stand
unique by giving their customers the feeling that they can live
anywhere globally.
YES Many companies have made heavy investments in research and
raw materials just to set their businesses in motion. Many
others have sustained losses in the process. Such reports are
unheard of by those who embrace the disruptive model. The
Espresso Mushroom Company is a vivid example of this
discovery. Like Airbnb, they never set their priorities to
attracting clients who would bring in big money but invested
more in attracting regular customers and improving their taste
each day. pg. 52
NO From my viewpoint, we cannot term their method as a
disruptive model. While it is true that they came to capture a
large audience with time, they did not rise to the peak of their
soccer agenda. Nevertheless, they remain a unique group of
footballers in the UK. Descriptive innovation focuses on clients'
satisfaction while, on the contrary, the FGR is sustained by its
 conservation. Their name, too, depicts strict set of rules. The club has not yet disrupted the football
their mission. When Vince became their industry to an alarming degree.
chairman in 2011, all meat products
were banned from the players' access.

Dollar Shave club The razor shave market is already
saturated, yet the Dollar Shave club
stands at the top of them all. The club is
sustained by the opposite approach of
adverts to attract new customers. They
noted that brands often behave
seriously, and they decided to make it
fun. They also took note of the
customers' experience during purchase
and resolved to make it better.
YES The Dollar Shave Club makes a perfect impression of what is
disruptive innovation. Their competitors had overpriced their
products, and the shopping experience, too, was frustrating. It
only took a step to correct this by taking a new market
foothold. (pg. 47) In 2012, the club also took advantage of
social medial and made their advertisement videos go viral
through optimized titles. They went further to sponsoring
youtube content creators, who in turn promoted their products
on their behalf. The overall result was a great hike in price that
seriously disrupted its competitors.

Disruptive innovation can be termed as the legal formation of an economic coalition with clients. The business enterprise studies the
customer's needs at the lowest level and tries its best to meet them rather than looking for stabilized customers from the other big companies.
Once the service is inviting enough, all the customers will automatically be drawn to your business services.