Disruptive Innovations as Toys
In a mature industry, companies compete by improving functionality
and performance, and they compete on price and service.
With that focus on functionality and performance, they are at
risk of overlooking an upstart competitor who does not even come
close to being competitive in those realms.
Mainframe companies initially dismissed PCs as toys. They
believed that the functionality and performance PCs provided could
never meet their customers' needs.
A disruptive innovation is often simpler, possessing less functionality,
than the existing market demands. If it meets the needs
of a significant market segment, however, and if its capabilities
grow, it can overtake the existing market. This is why market
leaders are often surprised by a disruptive technology--they didn't
even pay attention, having dismissed it as a toy!
