The word disruptive doesn't mean a breakthrough improvement, but it's an innovation that makes a formerly complicated expensive product a lot simpler and more affordable. In order to deliver the value proposition at a price profitably, you then need to calculate what kind of direct and overhead costs do I need to be able to meet in order to deliver that value proposition. These are people, products, technologies, buildings, equipment that you have to have working inside of that profit formula. And processes are habitual ways of getting things done. Do you want to run us through an example of how somebody developed a disruptive business model? You bet.
The theory of disruptive innovation endures as a way to make a complicated and expensive product simpler and more affordable. But the originator of disruptive innovation argued that disruptive innovation isn’t just about simplifying technology — it also requires a new business model.