what is disruptive innovation

Disruptive innovation, a term coined by Harvard Business School Professor Clayton Christensen, refers to the process by which a smaller company, usually with fewer resources, enters the market by targeting the least profitable segments or creating a new market segment. This innovation eventually displaces established competitors. There are two types of disruptive innovation: low-end and new-market disruption. Low-end disruption occurs when a company enters the market with a low-cost business model, while new-market disruption involves creating a new segment in an existing market. Disruptive innovation is a gradual process and requires a disruptive technology, a business model that supports the innovation, and a network of partners. It is different from sustaining innovation, which involves improving existing products for current customers