Breakthrough Innovation - The School Of Innovation

Synonyms

Disruptive Innovation, Radical Innovation, Game-changing Innovation

Definition

Understanding Breakthrough Innovation

Breakthrough Innovation, also known as radical or disruptive innovation, is a transformative process that fundamentally changes existing markets or creates entirely new ones. It involves developing novel technologies or leveraging existing ones in innovative ways to create significant value for businesses and customers.

Characteristics of Breakthrough Innovation

It is a significant departure from existing practices.
It disrupts or creates new markets.
It offers substantial benefits over existing products or services.
It involves a high level of risk and uncertainty.

Role in Business Strategy

Breakthrough Innovation is crucial for companies looking to gain a competitive edge in today’s fast-paced business environment. It allows companies to leapfrog competitors, redefine market boundaries, and achieve substantial growth.

Usage Examples

1. The introduction of the iPhone by Apple Inc. was a Breakthrough Innovation. It transformed the mobile phone industry and created a new market for smartphones.

2. Tesla’s electric vehicles represent a Breakthrough Innovation in the automotive industry, disrupting traditional car manufacturing with environmentally friendly alternatives.

Historical Context

The concept of Breakthrough Innovation has been around for decades but gained prominence with Clayton M. Christensen’s work on disruptive innovation in the late 1990s. He highlighted how such innovations could disrupt existing markets or create new ones.

Misconceptions

Breakthrough Innovation is not just about technology; it can also involve novel business models or processes.
It is not always initiated by startups; established firms can also drive breakthrough innovations.

Comparisons

Compared to Incremental Innovation, Breakthrough Innovation involves more significant changes and higher risk but also offers greater rewards.
Unlike Sustaining Innovation, which improves existing products, Breakthrough Innovation creates new products or services that redefine markets.

Related Concepts

Incremental Innovation
Sustaining Innovation
Blue Ocean Strategy
First-mover Advantage

Glossary Open Innovation (OI)
Open Innovation is a strategic approach that emphasizes external collaboration and co-creation to drive innovation. It's a key component in today's fast-paced, technology-driven business environment, enabling organizations to leverage external resources, ideas, and technologies to stay competitive and foster growth.
Glossary Innovator’s Dilemma
The Innovator's Dilemma refers to the challenging decision that businesses face when they must choose between sticking with their current, successful products or services and innovating to create new ones. This dilemma is a fundamental concept in the field of business strategy and innovation.
Glossary Radical Innovation (RI)
Radical Innovation refers to a groundbreaking shift in technology or processes that fundamentally transforms a business, industry, or market. It's a game-changer that disrupts existing frameworks and paves the way for new paradigms.
Glossary Sustaining Innovation (SI)
Sustaining Innovation is an essential concept in the business world, particularly within the Agile, Innovation, and Creativity domains. It refers to the process of making incremental improvements to existing products, services, or processes, which helps businesses to maintain or increase their competitive edge.
Glossary Disruptive Innovation (DI)
Disruptive Innovation is a game-changing business strategy that revolutionizes industries and markets by introducing new products, services, or ways of doing things that significantly alter how we live, work, or play.

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Breakthrough Innovation (BTI)