SUSTAINING INNOVATATION

SUSTAINING INNOVATION

This video on HBR Blog explained  about the "DISRUPTIVE INNOVATION" which tells how does the small young company beat the industry giant on its own terms.

The players focuses on sustaining innovation by upgrading existing product and services,giving cool features to attract higher paying customers but still they ignore all the regular customers who just want simple low cost alternative that's where these small young companies jumps in inventing their  products which is easier to use and at same price. 

Big giants focuses on more paying customers and begin to over serve by adding some extra features  which no one wants to pay for whereas the young companies increases its product in order to attract more customers by the time giants notices the young companies have all ready taken over the market an classic example of its is MILLS which produces more in a low price than the giants.

Like Toyota they started producing luxury features in their car as they were producing simple cars.

All the giants to come up with this problem they should treat the project as a separate unit with a different business model by asking what job customers need done segment customers by job not by product,market and by developing low-cost solutions to get the job done by cheap and effective methods.

Disruptive innovation creates new market different from the existing once to achieve goal in fast changing world