Disruptive Innovation

Topics: Fuel cell, Hydrogen vehicle, Hydrogen station Pages: 13 (4626 words) Published: December 1, 2012
1 Introduction
This assignment provides the study on Disruptive Innovation using Clayton Christensen’s framework. Apart from this, this assignment also tells how the companies should react to the upcoming technologies and what should be the course of action for the same.

1.1 Innovation
There is no specific definition for innovation as such. But, according to me, innovation is creating something new or changing the old to achieve the competitive advantage and meet the increasing customer demands. This is achieved either by introducing new products, new ideas, and processes or just by changing the design of the product or the processes as per the customer demands. Innovating and creating new products and services has become very important topic of concern for all the organizations in today’s rapidly changing world. If you are not innovative, you may never know when your products become obsolete. 1.2 Types of Innovation

There are three main types of Innovations:
Sustaining innovation: This type of innovation needs to be developed to ensure that the customers are satisfied with the products and services and to stay in the game. For example upgrading the processor from dual core to Intel core i3 to i5 and enhancing the performance of computers. Breakthrough Innovations: These innovations upgrade the level of existing category of products or services. For example I phone was a breakthrough innovation in the world of mobile market. It changed the perspective of the customers and eventually other companies started following the trend.

Disruptive Innovation: In this type of innovation a new product or a sevice is introduced that creates a new market or massively alters an old one so that old players cannot compete. They are called disruptive because they disrupt the current behavior of the market. For example Introduction of computers was a disruptive innovation for companies who manufactured typewriters.

According to Clayton Christensen Disruptive innovation offers lower performance initially as per the current market demand. But, at the same time it provides some new attributes which prosper in some different market. After conquering different markets, it eventually displaces the former market.

Here we will talk about the hydrogen fuel Cell vehicle a disruptive innovation. How the introduction of hydrogen fuel cell vehicle will disrupt the market for oil industry, current internal combustion engine manufacturers and many others. At the same time we shall talk about how the companies are responding to this upcoming technology and how are they coping up with the new technology. Before going into the statistic part let us know in brief how the hydrogen fuel cell works, how it is different from internal combustion engine and what the benefits of hydrogen fuel cell are.

2 Hydrogen Fuel Cell a disruptive Innovation
A fuel cell is an electrochemical device which converts chemical energy into electrical energy. It uses hydrogen and oxygen from air to produce electricity. Since no combustion is involved, it does not emit harmful gases and the efficiency of such device is much higher than an internal combustion engine. Apart from this it does not involve any moving part hence making it more silent and reliable source of energy.

2. 1 Working
Hydrogen fuel cell consists of two catalysts anode and cathode, and an electrolyte. Hydrogen is fed to anode and oxygen from air is fed to cathode. At anode, catalyst causes hydrogen to split into positively charged ions protons and negatively charged ions electrons. The electrolyte, that is polymer electrolyte membrane allows only positive ion to flow through it. So the protons pass through membrane towards cathode and electrons pass through the external circuit towards the cathode. The flow of electron from the external circuit causes the current and eventually it goes to cathode and combines with positive ion and oxygen to emit water or water vapor.

Hydrogen is is a...
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