ABSTRACT The article,“ The Art of Disruptive Innovation” is about disruptive innovation. It defines disruptive innovation. The article distinguishes between sustainable innovation and disruptive innovation. It talks about the various competencies and strategies used by the disrupters which make them successful in the mainstream market. The examples of major market players of various industries who have demonstrated disruptive innovation has been quoted in the article. The article concludes by pointing out the importance of disruptive innovation in today ' s marketplace.

THE ART OF DISRUPTIVE INNOVATION

Now-a-Days Disruptive Innovation is a term which is used in a colloquial manner. The dictionary meaning of the word“ disrupt” is

“ in-orderly outburst”. The meaning of innovation

is to invent something new. Disruptive Innovation is a term used for new business players, with fewer resources, who enter into new markets. These players enter into those market segments whose needs have been ignored by the existing big players. The existing

Swasti Verma PGDM 2015- 17

NMIMS Hyderabad

incumbents constantly try to meet the needs of their most demanding customers. They improve their existing products or add new products to their product line. The existing incumbents thus, get so busy satisfying the needs of their most demanding customers, which is perhaps the biggest revenue-generating agent, that they ignore the needs of the other segments.

Disruptive entrants begin to successfully target those overlooked segments and gain a foothold by delivering more suitable functionality, typically at a lower price. The existing big players, who are engaged in chasing higher profitability in more demandful segments, tend not to respond vigorously. These entrants then move upmarket, delivering the performance that incumbents’ mainstream customers require, while preserving the

advantages that drove their earlier success. When mainstream customers find value in the entrants’ offerings, they start adopting them in volume and that is the point where disruption