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Theories of Disruptive Innovation

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Theories of Disruptive Innovation
Disruption Theory and Value Innovation
2a1, DB 8004-01 Spring 2013

Houston, TX

Instructor: Dr. J
Outline
I. Introduction II. Innovation Theories a. Disruptive Innovation – Sustaining, Evolutionary and Revolutionary b. Value Innovation– Red and Blue Oceans c. Compare and Contrast Theories III. Case Study d. Apple Inc. i. Disruptive Innovation ii. Value Innovation IV. Conclusion

Introduction
Disruptive innovation has a proven advantage to foster creativity through innovation and the ability to cultivate a sustainable and competitive advantage over the competition when properly strategized. An important factor in determining long-term success is not just reacting to economic trends, but rather a willingness to persevere and sustain the company’s focus. Through the development of a plan that focuses on creating value for the customers needs, managing risks, and operating more efficiently (Harris, 2008), management teams are tasked with an achievable baseline to develop a competitive advantage.
The strategic thinking associated with a disruption theory may typically regresses towards what the competition is currently doing and what seems to be the most effective use of that strategy. The blunder of using the competition as a benchmark is that it usually yields short-term or unsustainable success due to a poor strategic reference. The halting of a sustainable competitive advantage depletes the success rate of a tactical counter-move and the birth of new innovation. Through shared innovation outside of a conventional context, the disruption theory has paved the way for many forms of strategic thinking, such as value innovation, which has garnered a much wider range of fluidity.
Value innovation places an equal emphasis on value and differs from a technological innovation. This innovation expands through acknowledging the desires of the relative market and capitalizing that knowledge



References: Christensen, C. M., & Overdorf, M. (2000). Meeting the Challenge of Disruptive Change. (cover story). Harvard Business Review, 78(2), 66-76. Harris, D. (2008). Creating value through innovation. Community Banker, 10-10. Retrieved from: http://search.proquest.com.library.capella.edu/docview/195163429?accountid=27965 Hwang, P Kim, W. (1999). Strategy, Value Innovation, and the Knowledge Economy. Sloan Management Review, 40(3), 41-54. Kim, W., & Mauborgne, R. (1997). Value Innovation: The Strategic Logic of High Growth. Harvard Business Review, 75(1), 103-112. Kim, W., & Mauborgne, R. (2012). Blue Ocean Strategy. Retrieved from: http://www.blueoceanstrategy.com/about/concepts/errc-grid/ Raynor, M.E Shelton, R. (2009). Integrating Product and Service Innovation. Research Technology Management, 52(3), 38-44. Yang, C. (2011). An integrated model of value creation based on the refined Kano 's model and the blue ocean strategy. Total Quality Management & Business Excellence, 22(9), 925-940. This grid and explanation was taken in its entirety from, Kim & Mauborgne (2012). Blue Ocean Strategy .Retrieved from: http://www.blueoceanstrategy.com/about/concepts/errc-grid/

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