According to Wind and Mahajan (1997), “Innovations that are unique or state-of-the-art technological advances in a product category that significantly alter the consumption patterns of a market.” Breakthrough innovation is often called disruptive, discontinuous, and radical innovation. But some authors have defined this innovation in another way. They have recognized that both disruptive and radical are different forms of breakthrough innovation.
Breakthrough innovation refers to innovation from inside a business organization pushing something to the next level. This innovation opens the organization to new changes or markets how customers interact with the industry or the market. Basically, this type of innovation changes or alters the dynamics of a given market or industry.
Zipcar represents a good example of this innovation. Basically, Zipcar functions like another car rental company. People book a car for a specific amount of time and return it after they are done. The breakthrough is removing the concept of centralized rental location and placing locations in high-traffic areas, neighborhoods, renting cars via websites and apps, across counters, and in-person.
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