Market Conditions
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DisruptiveInnovation.html.zipDisruptive Innovation.html
Disruptive Innovation
Disruptive innovation refers to a change in the status quo that inevitably changes the direction of the organization or creates a new avenue for the organization. For some, the effect of disruptive innovation creates a brand-new market altogether. This new market with its new pool of customers is now positioned to compete with other similar markets.
Clayton Christensen, chief founder of the idea, first introduced the concept of disruptive innovation in a 1995 Harvard Business Review article and again in his 1997 book, The Innovator's Dilemma. Most commonly associated with technological advancements in an industry, “disruptive innovation” is also a term used to describe the effects of what happens when a new idea is introduced into a particular market. This is essential in healthcare, where technology is continuously advancing and patient demographics are constantly evolving. Healthcare leaders are faced with the challenge of meeting the needs of existing patients, while remaining financially viable. New strategies and methods of providing quality care are constantly being introduced in an effort to balance an organization’s mission with its margin.
The concept of disruptive innovation, although relatively new, does not introduce a new system approach to strategic planning. The idea itself is relatively simple. Disruptive innovation permits the introduction of something new into the market. The development of something new in the market has the potential to create value for the customer. Value is identified as an organization having the ability to reach a previously excluded customer or developing a product or service that can be offered as an alternative to the original in an effort to reach a new market. When this value is recognized, it can then be ascertained whether the initiative was a disruptive innovation or merely the re-introduction of an existing product or service in the market.
Additional Materials
From your course textbook, Health Care Market Strategy, read the following chapter:
- Understanding the Strategic, Business, and Marketing Planning Process
From the South University Online Library, read the following articles:
