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Industry Disruptive Innovation

In classic article - 'The Rules of Innovation' by Clayton Christensen - the authors discuss factors ensuring the success of an innovation process and the utilization of all possible sources of innovation for an organization.

Pick any consumer electronics company. How did disruptive innovations in the industry affect this company? Did it adjust; and if so, how? Discuss possible sources of innovation for your chosen company. Use common knowledge, industry and library resources in answering this question.

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Digital innovation was popularized by Clayton Christensen. It describes a new innovative product which disrupts the industry and market causing businesses to change their business strategy or suffer the consequences.

Digital imagery/photography is a very good example of disruptive innovation. A few years ago, all photography were film-based which included the instant photographic image called "Polaroid". It can print out the pictures taken in just a few minutes. However, with the introduction of the digital cameras, there has been a great change in the way camera and film manufacturers handle their businesses. The first digital cameras had low resolution and poor quality images. However, there was a radical upsurge in the computer technology revolution at that time hence, the digital cameras proved to be the norm and film cameras became obsolete. There was a sudden shift from analog to digital photography putting film manufacturers and their incomes slowly disintegrating.

In 2001, Polaroid filed for bankruptcy because it was losing due to the existence of cheaper digital photography which is now very useful due to the rapid increase in computers. However, ...

Solution Summary

The effect of disruptive innovations on Polaroid and how the company adjusted to it. References are included.