Innovative disruption refers to the process where new ideas or technologies significantly change the way industries operate. This often happens when a smaller company introduces a product or service that is simpler, cheaper, or more convenient than what established businesses offer. For example, the rise of streaming services like Netflix disrupted traditional cable television, changing how people consume media. As these innovations gain popularity, they can force larger companies to adapt or risk losing their market share. This can lead to a cycle of continuous improvement, where businesses strive to innovate and meet evolving consumer demands, ultimately reshaping entire markets and industries.