Why even the pioneers can't stand still. Disruptive Innovation vs. Sustained Innovation
Innovation is often celebrated as the lifeblood of progress.
But not all innovation is created equal.
At the core of strategic thinking lies a fundamental distinction between disruptive innovation the
radical breakthroughs that change the rules and sustained (or incremental) innovation, the ongoing
refinements that help organisations stay relevant, efficient, and competitive.
Understanding this distinction matters more than ever, especially as even the most iconic disruptors
find themselves needing to reinvent to survive.
Disruptive innovation redefining the game
Disruptive innovation refers to a fundamental shift something that does not simply improve a product
or service but completely reimagines the value proposition, business model, or experience.
Key Characteristics
- Breaks with tradition or dominant logic
- Is often met with resistance or scepticism at first
- Starts small or niche, then scales rapidly
- Creates new markets or displaces existing ones
"Disruptive technologies typically enable new markets to emerge, and eventually disrupt
existing markets and value networks."
Clayton M. Christensen
Classic Examples
- The iPhone (2007). Not just a better phone a new category of internet-connected lifestyle device that killed off traditional phones and reshaped entire industries.
- Netflix (Streaming, post-2007). Moved from DVDs to on-demand streaming, disrupting television, cinema, and content distribution.
- Wikipedia (2001). Rewrote the rules of knowledge creation by replacing expert-written encyclopaedias with community-generated, living information.
Each of these began as a long shot and each, in their prime, fundamentally changed how the world works.
Disruptors also age. The inevitable plateau
What's often forgotten is that disruption is not a one-time act even the most revolutionary ideas age, and markets catch up.
- The iPhone, despite regular upgrades, faces stagnating sales, incremental innovation fatigue, and a maturing smartphone market.
- Netflix, once the poster child of digital disruption, is now battling subscriber fatigue, market saturation, and growing competition from Disney+, Amazon, and Apple TV.
- Wikipedia, though still widely used, faces relevance questions in the age of generative AI and curated content platforms.
"Disruption is not a permanent state it’s a moment in time that must be followed by evolution."
Rita McGrath
These examples show that disruption has a shelf life. What was once revolutionary becomes the new norm and must be reimagined again to stay relevant.
Staying in the game. Sustained Innovation
Sustained or incremental innovation is about improving what already exists. It might not grab headlines, but it keeps organisations alive and responsive.
Key Characteristics
- Builds on existing capabilities or markets
- Involves regular upgrades, refinements, or efficiency gains
- Minimises risk while maximising relevance
Examples include
- Regular software updates improving security and User Experience
- Automaker refinements in fuel efficiency and design
- Ongoing process improvements in logistics, like Amazon’s warehouse automation
"Innovation is not just about big ideas it’s about continuous improvement at every level."
James P. Womack
These innovations don’t change the rules but they help organisations play the game better.
Reinvention is key. Disruption that endures
Some disruptors have managed to sustain their edge not by standing still, but by constantly evolving their model.
- Amazon Web Services (AWS). Originally disruptive in replacing on-premises infrastructure with on-demand cloud computing, AWS remains strong by continuously expanding into AI, edge computing, and cybersecurity.
- Spotify. What began as music streaming has grown into a global hub for audio content, podcasts, AI-powered personalisation, and direct artist monetisation.
- BYD (Build Your Dreams). China’s EV giant began as a battery manufacturer and now rivals Tesla. Their ongoing innovation in vertical integration and hybrid technology ensures they're not just disruptive they’re durable.
"The best way to predict the future is to invent it and keep reinventing it."
Alan Kay
Innovation is not a moment, It’s a mindset.
Disruptive innovation creates waves.
Sustained innovation keeps you afloat.
In a world of accelerating change, the most powerful insight is this, even the disruptors must disrupt themselves.
Staying relevant requires both.
- The courage to break the model when needed (disruptive innovation)
- The discipline to continuously improve (sustained innovation)
"Success in the innovation game is not about one big win it’s about staying in the game long enough to keep winning."
Scott D. Anthony
True innovation isn’t about launching once and winning forever it’s about embracing reinvention,
iteration, and the uncomfortable truth that no success story guarantees a future without change.
References
Christensen, C. M. (1997). The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail. Harvard Business Review Press.
McGrath, R. G. (2013). The End of Competitive Advantage: How to Keep Your Strategy Moving as Fast as Your Business. Harvard Business Review Press.
Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press.
Anthony, S. D., Johnson, M. W., Sinfield, J. V., & Altman, E. J. (2008). The Innovator’s Guide to Growth: Putting Disruptive Innovation to Work. Harvard Business Press.
Kay, A. (1987). Computer Software and the Future of Education. Apple Education Seminar.