DISRUPTIVE
INNOVATIONS
PAGE 6
Empowering every Indian to fly
Captain Gopinath with its low cost airline Air
Deccan created disruptive innovation by making the
middle class fly between places by cutting down
unnecessary expenses during travel The strategy of
a low cost airline of bringing a luxury service to the
masses was a disruptor in the industry and forced
the competitors to revise their fares
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INM VOLUME 9
intermediaries by transferring the cost benefit
gained to customers by low pricing Communication
industry has been churned by Voice over Internet
protocol such as Skype where the cost to the
consumer is nil Brokerage industry has been
revolutionized by Merrill Lynch by low cost and
cheap investment options which has pulled people
out of middle income brackets to be a holder of
shares that impact the Wall Street Hard disks that
were initially the size of a refrigerator have been
reduced to the size of a palm and this has been
possible due to continuous innovation by IBM
Apple with its Ipod replacing Sony s walkman is yet
another replacement of the erstwhile market leader
This global scenario showcases innovations that
relate or can be compared to the previous cases
discussed in India
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Indian Wal-Mart
Big bazaar became the first of its kind with large
scale hypermarkets in the country in 2001 as the
brains behind the idea felt that India didn t have
large scale hypermarkets in spite of being one of the
world s largest consumer bases
Online educational websites
Online learning websites have become a competitor
to the traditional coaching and learning where the
accessibility and availability of resources comes at
minimal or zero cost compared to traditional
learning resources The business model that started
as a clone of western counterparts and has now
adapted itself to the needs of Indian consumers
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Future arenas of innovation
Wearable computing has been the key driver behind
healthcare innovation and many tracking devices in
mobiles and smart watches The Indian ventures
include RHL Vision Technologies Pvt Ltd Has
developed a wearable ring called Fin which treats
the palm as a numeric keypad and a gesture
interface India like the rest of the world is also
putting forward its baby steps with startups like
CarIQ Ducere Technologies 2mpower Health
Management Services Ineda Systems by venturing
into the internet space
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Inference
Disruptive innovations are simple and bring to the
market cheaper renderings of a product or service
which aims to serve customers at the bottom of the
pyramid The companies with a mainstream market
share do initially not worry as they own higher
margins to overcome the loss by low end
consumers but if the focus is not targeted towards
these innovators market leadership is at a stake
such as Apple and Google disrupting Sony and
Microsoft with its products and services
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References
Disruptive innovation Percy Agrereas Dastur
❖ The Innovator s dilemma Clayton M Christensen
❖ http www innosight com impact
stories chotokool case study cfm
❖ http www rediff com money special pix amul
an utterly butterly self sufficient
brand 20140904 htm
❖http www rediff com money 2007 mar 22bspec
htm
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Global cases
Many industries have faced disruptive innovation
which includes retail Wal Mart surpassed all its
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