1) Disruptive technologies are often initially developed by established companies but are undervalued by their existing customers as they do not address current needs. 2) These established players focus on sustaining their current technology while new entrants introduce disruptive technologies to small fringe markets. 3) The disruptive technology then moves upmarket and the established firms, who ignored it initially, must now try to catch up.

1. Innovator’s Dilemma - Introduction Clayton M Christensen, HBS Press, 1997

3. Innovator’s Dilemma Why upstarts and not established players? High dependency on existing customers Initial market too small (relative to current) Uncertain potential, certain consequences Established Technology Disruptive Technology