This section has introduced the topic of innovation via a consideration of radical innovation and incremental improvements; product, process and service innovations, and changing business models.
It has discussed disruptive versus sustaining innovation (after Christensen) and open versus closed innovation (after Chesbrough). Both can be seen as timely responses to the increasingly networked nature of innovative enterprise and both are influential. Christensen's work on disruptive innovation (Bower and Christensen, 1995) has highlighted how important it is for organisations to make a point of watching out for disruptive technologies that could take their market share and how easily large companies can be blinkered into concentrating on what they do well. Chesbrough (2003) has shown how often innovation involves working with partners outside the organisation.