Disruptive innovation: In need of better theory

The three specific types of disruptive innovations, business-model innovations, and radical (new to the world) product innovations, are discussed. The two innovations create different kinds of markets, pose different challenges for established firms and have different implications for managers. The first model innovators simply redefine what an existing product or service is and how it is provided to the customer. The second model innovation introduces new products and value propositions, disturbing the prevailing consumer habits and behaviors in a major way. All the three types of innovation may follow a similar process to invade existing markets and may have equally disruptive effect son incumbent firms.