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Английский язык - Технологии и инновации (1)

1. Read the text and summarise the text. Present the key concepts in the 
diagram given below:
Disruptive Innovation 
Disruptive innovation, a term of art coined by Clayton Christensen, de-
scribes a process by which a product or service takes root initially in simple 
applications at the bottom of a market and then relentlessly moves up mar-
ket, eventually displacing established competitors. 
As companies tend to innovate faster than their customers’ needs 
evolve, most organizations eventually end up producing products or services 
that are actually too sophisticated, too expensive, and too complicated for 
many customers in their market. 
Companies pursue these “sustaining innovations” at the higher tiers of 
their markets because this is what has historically helped them succeed: by 
charging the highest prices to their most demanding and sophisticated cus-
tomers at the top of the market, companies will achieve the greatest profita-
However, by doing so, companies unwittingly open the door 
to “disruptive innovations” at the bottom of the market. An innovation that 
is disruptive allows a whole new population of consumers at the bottom of a 
market access to a product or service that was historically only accessible to 
consumers with a lot of money or a lot of skill. 
Characteristics of disruptive businesses, at least in their initial stages, 
can include: lower gross margins, smaller target markets, and simpler prod-
ucts and services that may not appear as attractive as existing solutions 
when compared against traditional performance metrics. Because these 
lower tiers of the market offer lower gross margins, they are unattractive to 
other firms moving upward in the market, creating space at the bottom of 
the market for new disruptive competitors to emerge. 
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