The term 'Disruptive Innovation' was given in the year 1995 by

Clayton M. Christensen and is regarded as one of the most

influential and important innovations of the 21st century.

Disruptive Innovation refers to the innovation which helps in

creating new market and value network in place of the existing

market and value network which leads to the disruption of the

market-leading firms, alliances, and products that had already

been established earlier. Each and every innovation cannot be

regarded as a disruptive innovation even if they are bringing

about change in the existing system.

In accordance with the 'Theory of Disruptive Innovation'

disruptive innovation has been classified into two types-

"low-end disruption" and "new-market disruption." The low-end

disruption is a type of disruption which occurs when the

changes within the product take place at a higher rate than the

customers are able to adapt to the changes made within the

product. The new-market disruption occurs when a new

product emerges in the market that has not been served

earlier by any of the incumbents of the industry and which fits

itself within the new or emerging market segment.

The process of disruptive innovation is considered important for

business leaders because of the benefits that it provides to the

customers of the market. A disruptive innovator provides the

products at a favorable price to its customers as well as years

at creating a new and improvised value of his/her product by

making additional changes in the product. The process of

disruptive innovation has been proven beneficial for executives

also.

The first disruptive innovation was encountered by the human

beings in around 10,000 BC in the Middle East, and since

then it has continued to take place.