Disruptive Innovation

Disruptive innovation is a specific theory of competitive change, not a synonym for an eye-catching product launch. In the framework associated with Clayton Christensen and colleagues, entrants often begin with simpler, more accessible offerings that incumbents overlook because those customers are less profitable or not served at all. Over time, the entrant can improve enough to attract mainstream customers.

Consider an online platform that initially helps small contractors manage basic bookings at a price and level of complexity that enterprise field-service vendors ignore. If the product gradually gains capabilities and begins competing for established customers, it might illustrate a disruptive trajectory. But introducing a new app, using artificial intelligence, or lowering prices is not by itself evidence of disruption.

An incumbent may be pursuing sustaining innovation instead: improving an existing service for current profitable customers. A startup can fail to disrupt even when its concept is genuinely innovative. Analyzing the target market, initial performance trade-offs, business model, and path toward broader adoption is more informative than labeling every competitor “disruptive.” For local businesses, the practical question is whether underserved customers reveal a workable different model—not whether a marketing headline sounds revolutionary.