Disruptive Innovation

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In this step, you'll learn about disruptive technologies and how they can cause market leaders to fail even when they seem to be doing everything right. Professor Clayton Christensen from the Harvard Business School put forward a theory of disruptive technology to explain this phenomenon. Disruptive technologies enter the market offering very low performance but their performance steadily improves until they are good enough to meet the performance expectations of even the most demanding customers. This can often be too late for the incumbent to do anything about it, as they fail to develop the required capabilities and linkages to leverage the new technology. "