Three laws govern all disruption and profitable innovation.  They are like laws of nature; they define the environment in which innovation and competition take place.

The First Law of Disruption describes a core element of life in the Age of Hyper-Innovation:

The 1st Law of Disruption

# Disruption Comes to Us All.

The Second Law of Disruption defines the mechanism through which innovation is translated into market share:

The 2nd Law of Disruption

# All Disruption is Caused by Changes in Product-Market Fit.

The Third Law of Disruption establishes the foundation for Quantitative Product-Market Fit.  It is a bit of a mouthful:

The 3rd Law of Disruption

# The Difference in Value between two products is equal to the sum of the performance differences in each value dimension times the weight of the value dimension.

$latex \Delta V = \Sigma[(P_{x}-P_{y}) \cdot W_{n}]&s=4$

The key to profitable innovation is understanding these laws and their implications.  The implications include:

• There are only 3 modes of Product-Market Fit change
• There are only 3 types of disruptive attack
• There are only 5 ways that companies can cause changes in market share to occur

These are all part of the Innovator’s Toolkit.  But first, let’s look closely at what Product-Market Fit really is.