Disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances.

1. WHAT IS DISRUPTIVE
INNOVATION
DISRUPTION IS A PROCESS
Disruption is a process, not a product or service, that occurs
from the fringe to mainstream
ORIGINATE IN LOW END OR NEW MARKETS
Originate in low-end (less demanding customers) or new market
(where none existed) footholds
NEW FIRMS NEED TO MATCH MAINSTREAM QUALITY
New firms don't catch on with mainstream customers until
quality catches up with their standards
DISRUPTIVE BUSINESS NOT ALWAYS SUCCESSFUL
Success is not a requirement and some business can be disruptive but fail
A DIFFERENT BUSINESS MODEL
New firm's business model differs significantly from incumbent
FOUR STAGES OF
DISRUPTION
The four stages of
disruption described by Steven
Sinofsky are disruption,
evolution, convergence and re-
imagination
PHASE ONE: DISRUPTION OF INCUMBENT
incumbent’s attitudes towards technology disruption are particularly cliché, range from “new
technologies are inferior”, “new products do not do all the things existing products do”, or 'are
inefficient” to “new services fail to address existing needs as well as what is already in place
PHASE TWO: RAPID LINEAR EVOLUTION
The product creators are still disruptors, innovating along the trajectory they set for themselves,
with a strong focus on early-adopter customers. The disruptors are following their vision. The
incumbents continue the ASIS successful trajectory, unknowingly sealing their fate
PHASE THREE: APPEALING CONVERGENCE
As the market redefinition proceeds, the category of a new product starts to undergo a subtle
redefinition. The market begins to call for the replacement of the incumbent technology with the
new technology & the entire market begins to “wake up” to the capabilities of the new product
PHASE FOUR: COMPLETE REIMAGINATION
The last stage of technology disruption is when a category or technology is reimagined from the
ground up with new criteria such as cost, performance, reliability, service and features
DISRUPTIVE PRODUCTS &
SERVICES
Disruptive Innovations they make
products & services more
accessible & affordable
Uber is not an example of disruption because it did not
originate in a low-end or new market footholds
A low-cost solution to a low-value customer. Of course, as Airbnb grew in popularity, the quality of its offering increased. They begin to
address the needs of higher-value customers that would otherwise stay at a nice hotel
Netflix started off as a video on demand and DVD by mail platform & then later expanded its services to online video streaming
which became of its focus. Netflix is a disruptive innovation as it revolutionised how people get their daily dose of entertainment.
Amazon is one of the world’s most disruptive firms as users love
it so much they forget they've paid for some of its services
DISRUPTIVE
TECHNOLOGIES
A disruptive technology sweeps
away the systems as it has
attributes that are recognizably
superior. Recent disruptive
technology examples are e-
commerce, online news sites,
ride-sharing apps
ALEXA
Voice enable all things with Alexa is one of the devices that exemplifies the connect world
more than any today. The intelligent smart speaker is changing the way people interact
ARTIFICIAL INTELLIGENCE
Artificial Intelligence is an area of computer science that emphasizes the creation of intelligent machines
that work and react like humans. Some of AI applications include: Speech recognition. Learning. Planning
INTERNET OF THINGS (IoT)
IoT consists of all the web-enabled devices that
collect, send and act on data they acquire from
their surrounding environments using embedded
sensors, processors and communication hardware
3D PRINTING
3D printing is a way of creating three dimensional
(3D) solid objects. 3D printing is done by building up
the object layer by layer. Often 3D printers use
plastic, because it is easier to use and cheaper
ROBOTICS
Robotics is a part of Engineering and Science. It is
focuses on the creation and building of robots, as
well as computer programming. Some robots look
like humans, but most just look like machines.
BLOCKCHAIN
Blockchain is a type of diary of
transactions & is effective as a
separate copy a blockchain of is
spread over many computers
BENEFITS OF DISRUPTIVE
INNOVATION
HELPS EXPANDS MARKETS
It aids businesses to expand its
markets through innovation with
new and existing products/services
CREATES A SENSE OF URGENCY
It creates a sense of urgency for
businesses to the importance of
embracing new technologies
IDENTIFICATION OF FUTURE LEADERS
It helps companies discover its present
and future leaders who understand
what disruptive innovation brings
IDENTIFY FUTURE OPPORTUNITIES
Disruptive innovation helps
businesses discover future
opportunities in the marketplace
CHANGE IN COMPANY CULTURE
A business culture can change into
a learning community that
embraces change & innovation
Contact 3 Magic Consulting: Email: info@3Magicconsulting.com Tel: +44 121 318 5473
ONE-PAGE MAGIC | No. 89 by Ken Martin & Rabih Haidar Rabih Haidar
3 MAGIC
CONSULTING
Affiliate
DIGITAL WORKPLACE
LEADER AND
CONSULTANT
Beirut, Lebanon
Ken Martin
3 MAGIC
CONSULTING
Founder, Partner
TRANSFORMATION
PMO
CONSULTANT
London,
United Kingdom
DISRUPTIVE INNOVATION
Disruptive innovation is an innovation that creates a new market and value network and
eventually disrupts an existing market and value network, displacing established market-
leading firms, products, and alliances.