DISRUPTIVE INNOVATION Disruptive innovation is that type of innovation which alters the existing market or creates a new market.

Disruptive innovation involves a product or a process which is cheaper as compared to the existing products. It can be any form of new and inexpensive technology, a shorter or more precise process, or even an altogether new technology or process. The process of innovation always starts from a pain point, or we can say that necessity is the mother of invention. There are many examples of disruptive innovation present in the market such as:1. CHOTUKOOL Chotukool is one of the best examples of disruptive innovation. The pain point here was easy and cost effective refrigeration, after realizing the need godrej came up with idea of a refrigerator half the price then any regular refrigerator At Rs 3,250. 2. TATA NANO Tata is offering a bare essential car at blow out prices. The concept reality of a car in every home could be realized from this car which is available in the market for the cost of any high end motorcycle in the market 3. ONLINE GAMING: ZYNGA The concept of online gaming involved players or friends coming together not in reality but in digital world and playing their favorite games from the comforts of their homes. Zynga with its partnership with facebook introduced flash games with multiple users playing randomly online with each other. This concept is well accepted worldwide and zynga is earning greate profits world wide. 4. SKYPE The concept of conferencing or talking to someone online got revamped with the introduction of skype in the market. It involves video calling free of cost, it has now become a household name. The above given examples clearly outline what disruptive innovation is now in order to witness the full effects of disruptive innovation we must understand the following case of DISK DRIVE INDUSTERY :The first disk drive was developed in IBMs San Jose research laboratories, around 1954. It was as large as a refrigerator and it could store 5 megabytes of data. By 1976 $1 billion worth of disk drives was being produced annually, divided between integrated producers. By 1996 the disk drive market was worth $18 billions, but out of the many companies that were operating in 1976 only IBM was still in the market. About 129 firms entered the market during that period, and 109 of them ceased to exist. Most of the technological discontinuities that emerged in the industry were sustaining innovations. For example in the 1970s the oxide disks started to reach a physical limit (in terms of bytes of information contained), forcing the leading companies to develop an alternative. IBM, Control Data and other incumbents invested more than $50 million developing thin-film coatings, and virtually all of the established firms managed to keep their position in the face of such sustaining innovation.

The above example clearly emphasizes that in order to sustain a healthy business it is important to continuously innovate as in case of IBM which grew and adopted well enough to provide new and improved data storing devices. MR.ASHWIN BHATIA