Disruptive innovation is a term coined by Clayton Christensen in his book "The Innovator's Dilemma" to describe a new technology or product that disrupts an existing market and creates a new one. Disruptive innovations typically start out as inferior or less expensive alternatives to existing products, but eventually improve and surpass the established products.
One of the key characteristics of disruptive innovation is that it often targets underserved or overlooked customer segments. These customers may be willing to sacrifice some features or quality for a lower price or greater convenience. Over time, however, the disruptive innovation improves and becomes more attractive to mainstream customers.
Another important aspect of disruptive innovation is that it often requires a different business model than the existing market leaders. For example, a disruptive innovation may be sold through a different distribution channel or require a different pricing strategy. This can make it difficult for established companies to respond effectively to the disruption.
As a product manager, it's important to be aware of disruptive innovations in your industry and to consider whether your company should embrace or resist them. Embracing a disruptive innovation can be risky, but can also create new opportunities for growth. Resisting a disruptive innovation may protect your existing business in the short-term, but can leave you vulnerable to long-term decline.
To successfully manage a disruptive innovation, it's important to be agile and responsive to changing market conditions. This may require rethinking your product roadmap, adjusting your pricing strategy, or partnering with new suppliers or distributors. By staying attuned to disruptive innovations and adapting quickly, you can position your company for long-term success in a rapidly evolving market.