This important Summit will introduce the concept of Disruptive Innovation to stakeholders in the non-profit, education government and corporate sectors, and will to begin a year-long process of coordinating initiatives that utilize Disruptive Innovation Theory to develop and promote solutions to critical challenges in the social sector. The Summit represents the first step in a year-long initiative designed to foster disruptive innovation within the non-profit sector.

What is Disruptive Innovation?

A disruptive innovation is an innovation that transforms an existing market or sector – or creates a new one – by introducing simplicity, convenience, accessibility, reliability, and affordability, where before the product or service was complicated, expensive, and inaccessible.

In his 1997 bestseller, The Innovator’s Dilemma, Clay Christensen introduced Disruptive Innovation Theory to describe a process by which a product or service takes root initially in simple applications and then is upgraded and improved until it eventually displaces established competitors. Because companies tend to innovate faster than their customers’ lives change, they eventually end up producing products or services that are too good, too expensive, and too inconvenient for many customers. By only pursuing “sustaining innovations” that perpetuate what has historically helped them succeed, companies unwittingly open the door to “disruptive innovations” – products that provide the same service in a new way, without all the bells, whistles and infrastructure. Cell phones, charter schools, walk-in clinics and discount airlines are classic examples of Disruptive Innovations.

What can the non-profit world learn from Clay Christensen?

For years, non-profits have thrived by designing their services according to the direction and financial support of government agencies and major donors. As funding streams appeared, programs were designed to capture the money and keep it flowing.

Times are changing. Government budgets have shrunk, and donations have fallen. As a result, non-profits in our community have been unable to maintain their services. Agencies have been forced to reduce their services; some are closing their doors. The needs of our most vulnerable residents are going unmet.

Non-profits must regroup to continue their vital work. Rather than try to replicate the service models of the past, the concept of Disruptive Innovation would suggest that the sector needs to envision a new perspective and a different framework.

What is the scope of the Initiative?

The Health Trust is convening this summit as the first step in a year-long process using disruptive innovation theory to shake up the non-profit sector in order to develop and promote solutions to the critical challenges facing our community.

• During the Summit’s morning session, Christensen will present the theory of Disruptive Innovation and guide representatives of the non-profit, education, government and corporate sectors in exploring ways to create a new paradigm for achieving our goals.
• In the afternoon, Christensen will facilitate a half-day session of team-exercises to generate ideas for tackling the challenges of healthcare, education, homelessness and other issues addressed by the non-profit sector.
• The Health Trust will then lead and staff a year-long effort to support and coordinate initiatives that utilize disruptive innovation theory in new approaches to systemic challenges.

 

 

Listen to a KLIV Radio special report

KLIV spends time every week examining in-depth issues affecting Silicon Valley, and presents those issues in their Special Reports series.The Disruptive Innovation Theory series originally aired January 23-27, 2012.