How does the author differentiate between Sustaining Innovation (SI) and Disruptive Innovation (DI) ?
Explanation:
Paragraphs 2 to 6 talk about the differences between Sustaining Innovation(SI) and Disruptive Innovation (DI). The important points in this differentiation are: “Sustaining technologies are innovations that make a product or service better…month after month, year after year they launch new and improved products. Disruptive innovations occur so intermittently that no company has a routine process for handling them. Disruptive innovations create an entirely new market”. From this, [3] can be inferred. [1] is incorrect as the passage does not differentiate between IT companies and banking sector with respect to SI and DI. [2] is incorrect as it is DI which requires companies to change at a faster pace. Similarly, [4] is incorrect as it is DI which may be managed by smaller companies. Hence, the correct answer is option 3.
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