Clayton Christensen is the father of thinking about disruptive technology, but he has stated that most people do not understand what he really means. See "Clay Christensen says everyone misunderstands his theory of disruption — here's what it really means".
- Disruption is a process, not a moment in time.
- Disrupters typically utilize different business models, not just different products or services, from incumbents.
- Disruptive innovation does not guarantee success.
- A company does not necessarily have to disrupt its core offering when it is being disrupted.
This is a more nuance view of disruption which thinks of disruption as a process not an event. Most examples of disruption focus on products when the disruption can come in the form of a strategy or model. Most stories also focus on the successful disruptors, but a disruptor can be wrong. The timing can be off. The execution can be wrong, and others may be better able to take advantage of the disruption. Incumbent firms do not have to change their strategy in the face of disruptors. They can compete with the new ideas.
The finance industry is filled with disruptions, yet firms often do not focus on how to deal with or take advantage of change. Hedge funds must constantly think about disruptive strategies and models and accept that disruption is a constant.
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