According to the standard definition by Clayton Christensen, a disruptive innovation is a product that is lower quality from the viewpoint of existing value networks, AND offer lower margins to those vendors. The application, from existing value networks’ perspective, should not satisfy their customers’ needs and not be attractive from a financial point of view due to the lower margins and smaller markets.
But is “low margin” really a necessary part of the equation? Or can the definition of a Disruptive Innovation be even more pure without it? Also, there are some anomalies that may explain why Christensen got it wrong in some instances due to the “low margin” requirement being part of it.