Based on the works of Joseph Schumpeter and Clay Christensen, new companies can use relatively simple, low-cost innovations to triumph over incumbents. Its not always obvious.
As an example, it wasn’t Daimler’s invention of the car that triumphed over the horse drawn carriage but rather Ford’s assembly line which drove down cost. The chart below shows examples of disruptive innovation.
| Incumbant Technology/Concept | Emergent Technology/Concept |
|---|---|
| Own | Share |
| Vertically Integrated Steel Mills | Mini Steel Mills |
| Landline Phone | Cell Phone |
| CRT | LCD |
| Chemical Photography | Digital Photography |