Clayton Christensen describes disruptive innovation in this short video interview. The first half covers the basics. Disruptive innovations occurs when a new usually cheep products allows many more people to participate in a technology instead on a select few (think mainframe computers of old). The second part was really good. Data is historical so being a data driven organization or manager means you can't see the future. The key is to develop a theory or model of your business, and use the model to see the future. Don't let the cheap competition eat away at your lowest product would be one model of seeing the future, for example. Ford & GM lost low cost market Toyota. Toyota is losing its low cost market to Kia, for instance. Intel protected its high-end processors with the low cost Celeron and now perhaps the Atom which illustrates an example of using the model to manage the competition.