{"id":503,"date":"2018-07-26T23:26:13","date_gmt":"2018-07-27T04:26:13","guid":{"rendered":"https:\/\/www.caribbeanvalueinvestor.com\/news\/?p=503"},"modified":"2018-07-27T04:49:01","modified_gmt":"2018-07-27T09:49:01","slug":"what-difference-between-disruption-innovation","status":"publish","type":"post","link":"https:\/\/www.caribbeanvalueinvestor.com\/news\/value-investing-education\/what-difference-between-disruption-innovation\/","title":{"rendered":"What is the Difference between Disruption and Innovation"},"content":{"rendered":"<h1>What is the Difference between Innovation and Disruption?<\/h1>\n<p>Disruption is often confused with innovation, however there is a very succinct difference between the two terms. We think of it as a practise, process, product or service that transforms an existing market, normally taking a significant portion of the market. On the other hand, an innovation is defined as &#8220;the introduction of something new&#8221; (Source: <a href=\"https:\/\/www.merriam-webster.com\/dictionary\/innovation\">Miriam-Webster.com<\/a>). An innovation is a <strong>new<\/strong> idea, method, service or device. Therefore, an innovation may or may not be a disruption.<\/p>\n<p><strong><em>Suggested Reading:<\/em> <\/strong><a href=\"https:\/\/www.caribbeanvalueinvestor.com\/news\/economy\/the-caribbean-is-ripe-for-disruption\/\">The Caribbean is Ripe for Disruption<\/a><\/p>\n<p>According to <a href=\"http:\/\/www.claytonchristensen.com\/\">Clayton Christensen<\/a>, professor and disruptive innovation expert, disruptive innovation is\u00a0 \u201cthe phenomenon by which an innovation transforms an existing market or sector by introducing simplicity, convenience, accessibility, and affordability&#8230;&#8221;\u00a0 A disruption usually entails innovation but not all innovations are disruptions. Christenson further goes on to say \u201cDisruption describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses\u201d. Disruption occurs \u201cwhen mainstream customers start adopting the entrant\u2019s offerings in volume\u201d. He expounds this in an article published in The Harvard Business Review in 2015. We have included the link to the article in our references below.<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- CVI Search Menu Ads - Link 1 --><br \/>\n<ins class=\"adsbygoogle\" style=\"display: block;\" hidden=\"\" data-ad-client=\"ca-pub-8845932375528187\" data-ad-slot=\"2346481411\" data-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/p>\n<p>&nbsp;<\/p>\n<h2>Test Your Knowledge<\/h2>\n<p>Which of the following companies caused a disruption?<\/p>\n<p>A) NCB Financial Group (JSE: $NCBFG)<\/p>\n<p>B) GraceKennedy Limited (JSE : $GK)<\/p>\n<p>C) Lasco Manufacturing (JSE : $LASM)<\/p>\n<p>Leave your responses in the comments below or tweet us <strong>@cvijamaica<\/strong><\/p>\n<p><span style=\"text-decoration: underline;\"><em>Sponsored Search by Google<\/em><\/span><\/p>\n<p><script>\n  (function() {\n    var cx = 'partner-pub-8845932375528187:6320868524';\n    var gcse = document.createElement('script');\n    gcse.type = 'text\/javascript';\n    gcse.async = true;\n    gcse.src = 'https:\/\/cse.google.com\/cse.js?cx=' + cx;\n    var s = document.getElementsByTagName('script')[0];\n    s.parentNode.insertBefore(gcse, s);\n  })();\n<\/script><\/p>\n<p><script>\n  (function() {\n    var cx = 'partner-pub-8845932375528187:6320868524';\n    var gcse = document.createElement('script');\n    gcse.type = 'text\/javascript';\n    gcse.async = true;\n    gcse.src = 'https:\/\/cse.google.com\/cse.js?cx=' + cx;\n    var s = document.getElementsByTagName('script')[0];\n    s.parentNode.insertBefore(gcse, s);\n  })();\n<\/script><\/p>\n<p class=\"western\" align=\"center\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">References<\/span><\/span><\/p>\n<p class=\"western\" style=\"text-align: left;\" align=\"center\">If you wish to read further on this topic, please feel free to use any of the links below. We have attempted to use scholarly sources to support our simplification.<\/p>\n<p class=\"western\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Christenson, C. (1997). <\/span><\/span><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\"><i>The Innovator\u2019s Dilemma<\/i><\/span><\/span><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">. Retrieved from <\/span><\/span><span style=\"color: #0563c1;\"><span lang=\"zxx\"><u><a href=\"https:\/\/www.christenseninstitute.org\/key-concepts\/disruptive-innovation-2\/\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">https:\/\/www.christenseninstitute.org\/key-concepts\/disruptive-innovation-2\/<\/span><\/span><\/a><\/u><\/span><\/span><\/p>\n<p class=\"western\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Christenson, C.M. (2015). What is Disruptive Innovation?. <\/span><\/span><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\"><i>Harvard Business Review<\/i><\/span><\/span><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">. Retrieved at <\/span><\/span><span style=\"color: #0563c1;\"><span lang=\"zxx\"><u><a href=\"file:\/\/\/C:\/Users\/620079586\/Downloads\/Disruptive Innovation.pdf\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">file:\/\/\/C:\/Users\/620079586\/Downloads\/Disruptive%20Innovation.pdf<\/span><\/span><\/a><\/u><\/span><\/span><\/p>\n<p class=\"western\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Barnaby, J. (2018, February 2).<\/span><\/span><b> <\/b><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Lasco Financial Forms New Loans Subsidiary as Business Triples. <\/span><\/span><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\"><i>The Gleaner. <\/i><\/span><\/span><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Retrieved from<\/span><\/span><\/p>\n<p class=\"western\"><span style=\"color: #0563c1;\"><span lang=\"zxx\"><u><a href=\"http:\/\/jamaica-gleaner.com\/article\/business\/20180202\/lasco-financial-forms-new-loans-subsidiary-business-triples\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">http:\/\/jamaica-gleaner.com\/article\/business\/20180202\/lasco-financial-forms-new-loans-subsidiary-business-triples<\/span><\/span><\/a><\/u><\/span><\/span><\/p>\n<p class=\"western\"><span style=\"color: #00000a;\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Jamaica Stock Exchange. (2017, August 8). <\/span><\/span><\/span><span style=\"color: #00000a;\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\"><i>Jamaica Stock Exchange (JSE)- Blockchain Technology. <\/i><\/span><\/span><\/span><span style=\"color: #00000a;\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">Retrieved from<\/span><\/span><\/span><\/p>\n<p class=\"western\"><span style=\"font-family: Droid Sans, serif;\"><span style=\"font-size: medium;\">https:\/\/www.jamstockex.com\/jamaica-stock-exchange-jse-blockchain-technology\/<\/span><\/span><\/p>\n<p class=\"western\">\n\n<div class=\"twitter-share\"><a href=\"https:\/\/twitter.com\/intent\/tweet?via=cvijamaica\" class=\"twitter-share-button\" data-size=\"large\">Tweet<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is the Difference between Innovation and Disruption? Disruption is often confused with innovation, however there is a very succinct<\/p>\n","protected":false},"author":1,"featured_media":525,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[82,93],"tags":[87,36,34,85,205,203,204,92,37],"class_list":["post-503","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","category-value-investing-education","tag-bitcoin","tag-caribbean","tag-caribbean-value-investor","tag-cryptocurrencies","tag-financial-literacy","tag-investing-education","tag-investor-education","tag-technology","tag-value-investing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is the Difference between Disruption and Innovation -<\/title>\n<meta name=\"description\" content=\"The Difference between disruption and and innovation is that a disruption 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