Disruptime!—Guidance Towards Radical and Disruptive Innovation

Abstract

Innovation remains a hot topic in business agendas. For years, the importance of the issue has been acknowledged by the vast majority of managers and academics, which has led to many aspects being well covered in the research and to many theories being developed. One such theory that finds broad support states that firms must commit to incremental and radical innovations simultaneously in order to grow profitable, not just in the short term but also in the long run. Radical innovations are inherently different to manage compared to incremental or sustaining ones, which is why they require specific managerial attention. A very special type of radical innovation is disruptive to the markets which it enters or creates. These disruptive innovations are difficult for any type of organization to introduce, mostly because they require measures that contradict common management literature and are in conflict with organizations streamlined for maximal efficiency. This chapter illustrates the critical aspects of managing radical innovations in general, before going on to discuss the critical issues in relation to disruptive innovations. The aim is to provide a better understanding of the theories of radical and disruptive innovations, as well as to offer recommendations on how to deal with the phenomenon of disruption. Disruptive theories as first presented by Christensen (1997) pose a great threat to established organizations, and therefore, the basic principles of disruption are essential knowledge for every manager.