Question 5

Case Study: Creative destruction: Out with the old, in with the new

Creative destruction describes the deliberate dismantling of established processes in order to make way for improved methods of production. Creative destruction is most often used to describe disruptive technologies. The term was coined in the early 1940s by economist Joseph Schumpeter, who observed real-life examples of creative destruction, such as Henry Fords assembly line.

Q.5.1 Briefly outline Schumpeters theory of creative destruction and provide three examples of either organisations that have disrupted the market, or industries that have been disrupted through creative destruction. (5)

Q.5.2 Briefly describe the bottom of the pyramid (BOP) process for developing business specifications. (2)

Q.5.3 Explain the key principles behind applied design thinking. (3)