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Definition: Disruptive Innovation is an innovation model by Christensen ('97) describing the impact of new technologies on a firm's existence.
Time and again, almost all organizations that have "died" or been displaced from their industries because of a new paradigm of customer offering could see the disruption coming, but did nothing until it was too late.
By doing what good companies are supposed to do - cater to their most profitable customers and focus investments where profit margins are most attractive - established industry leaders are on a path of sustaining innovations and leave themselves open for disruptive technologies to bury them.
Compare: Trajectories of Industry Change.