DISRUPTION CAN INVOLVE COST SAVINGS AND INNOVATION – 3 OBSERVATIONS Disruption is arguable the most often and overused word in business and indeed politics today – closely followed by innovation. Both however are misunderstood – particularly ‘disruption’. The term ‘disruption’ was coined by Harvard University professor Clayton Christensen. He defined it as follows: A process […]

DISRUPTION CAN INVOLVE COST SAVINGS AND INNOVATION – 3 OBSERVATIONS Disruption is arguable the most often and overused word in business and indeed politics today – closely followed by innovation. Both however are misunderstood – particularly ‘disruption’. The term ‘disruption’ was coined by Harvard University professor Clayton Christensen. He defined it as follows: A process by which a product takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors. He argues that many businesses evolve to a point where they produce products that are actually too sophisticated, too expensive and too complicated for many customers in their target market. New entrants adopting a disruptive strategy often: Offering lower prices for a simpler product. Offer greater accessibility to a less traditional product. Disruption can involve technology and it can be technology – but it need not be either. Disruption…