A framework for disruptive innovation

Abstract Purpose Disruptive innovations have the potential to fundamentally change how businesses operate. This study aims to propose a five-step framework to help firms develop disruptive innovations and to offer a scale for evaluating their disruptive potential. This scale can also be applied to identify the disruptive potential of innovations introduced to the market by competitors. Design/methodology/approach The framework was designed on the basis of criteria chosen to identify the disruptive potential of innovations at early stages of development based on a theoretical understanding of disruptive innovation, its challenges and holistic consideration of innovation as a dynamic process. It consists of steps that could serve as a reference model during the process of developing innovations with disruptive potential. A case study is discussed in detail to demonstrate the applicability of the framework. Findings A simple yet comprehensive assessment framework for disruptive innovation has been developed, which can help develop innovations with disruptive potential in existing settings of incumbent firm. A case study of the Wii demonstrates that Nintendo could have planned its disruptive product using the proposed framework. Originality/value Most research works in this area have focused on difficulties experienced by firms facing disruption and failed to highlight its opportunities; this study argues that firms can intentionally create disruptive innovations. The results of this study offer firms a tool that facilitates a proactive approach, helping develop new disruptive innovations and identify those from competitors.