Which is an example of industry disruption?

Industry disruption occurs when new technologies or business models create a new market and value network, eventually displacing established market leaders and alliances. Option D is the best example, as the development of a core navigation system for the emerging self-driving car market represents a fundamental shift. This technology enables a new value proposition (autonomous vehicles) that will radically alter the transportation and automotive industries, rendering existing models (human-driven cars, traditional logistics) obsolete. The new system becoming the "system of choice" indicates the formation of a new, dominant ecosystem, which is a key characteristic of disruption.

A. Launching a popular app is an example of successful product innovation, but it does not inherently describe a fundamental change to the market's structure or the displacement of established competitors.
B. Transitioning services to the cloud is a strategic response to existing market pressures and technological shifts. This is an act of adaptation to remain competitive, not an act of causing disruption.
C. Adopting a new operating model to become a market leader is an example of successful competitive strategy within the existing market framework, not an act of changing the fundamental rules of that market.

1. AXELOS, ITIL® 4: Digital and IT Strategy. TSO (The Stationery Office), 2020.

Section 2.1.1, "What is Digital Disruption?": This section defines disruption as the effect of new technologies and business models that create new value propositions and can render others obsolete. The self-driving car navigation system (Option D) is a technology enabling a new value proposition that will make existing transportation models obsolete, fitting this definition perfectly.

Section 2.2.1, "Positioning the organization for a digital future": This section discusses how organizations must respond to disruption. Options B and C describe organizations responding to their environment to remain competitive or become leaders, rather than being the source of the disruption itself.

Section 2.1.1, Paragraph 3: "Disruption changes the fundamentals of a market." The shift to autonomous vehicles is a fundamental market change, whereas a new app (A) or a new operating model (C) are less likely to represent such a fundamental shift.