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Technology and Disruptive Innovations

In: Strategic Thinking for Turbulent Times

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  • M. S. S. Namaki

Abstract

The role of technology in corporate strategy is changing dramatically. Traditional research and development (R&D) is giving way to what is being recognized today as disruptive innovation. Disruptive innovations are changing a fundamental premise of strategic thinking. They do not follow the classic model, entering the market as cheap substitutes for high-end products and then gradually increasing in quality and moving up the customer chain. Instead, the innovation beats incumbents on both price and quality right from the start and quickly sweeps through every customer segment. This kind of “big bang” disruption can devastate entire product lines virtually overnight (The Economist, 2014).

Suggested Citation

  • M. S. S. Namaki, 2014. "Technology and Disruptive Innovations," Palgrave Macmillan Books, in: Strategic Thinking for Turbulent Times, chapter 8, pages 72-76, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-41400-7_9
    DOI: 10.1057/9781137414007_9
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