Argumentative

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Creativity, Innovation & Design

Prepared by Dr Gerrit de Waal

INNOVATION TYPOLOGIES

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Sustaining innovation • Refers to the type of innovations that exist in the current market and

improves and grows the existing market. • For example, nearly all modern cars can be considered to be sustaining

innovations. If we look at for example Toyota Prius (first launched in 1997), the basic functionalities of the car have stayed pretty much the same. It only continues getting slightly better with every iteration, continuing to cater the needs of a typical Prius customer.

• SI is how established companies move along established improvement trajectories – improvements along dimensions historically valued by customers.

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Disruptive Innovation – Clayton M Christensen

• A 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.

• It describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.

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Sustaining versus Disruptive Innovations

Disruptive innovations usually entail a change in a business model

They introduce a new value proposition and either create new markets or shape existing ones

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There are three important qualities of disruptive innovation to note: 1. The new product or service enters at the bottom of an

established market. 2. It begins as a substandard product that is not seen as a

threat by established market leaders. 3. Adopters are non-consumers who couldn’t use the product

or service previously because of cost or accessibility issues.

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(Hutton, Wong, & Gagnon, 2018)

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Disruptive innovation example Digital telephony entered at the bottom of the market and, over time, moved up and displace established market leaders.

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Disruptive Innovation example

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Who is disrupting who?

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The cross-over of innovation

INCREMENTAL RADICAL

DISRUPTIVE

SUSTAINING Computer chips

Cars

Fax machine

Digital camera

Light-lens to Digital photocopier

Supermarkets

continuum

Electronic cash register Self-checkouts

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References Hutton, K., Wong, E., & Gagnon, R. (2018). Thinking Outside-the-Box for Cyber Defense: Introducing an Innovation Framework for the 21st Century. The Cyber Defense Review.