Abstract: In the pursuit of innovation capability, evolving the value network has been becoming a predominant way for latecomer firms to facilitate disruptive innovation. Based on the theory of value network, the process of disruptive innovation is divided into three phases: entering, catching up, and disruption. Further research in this area demonstrates that the development of value network focuses on market, technology and cooperation, and the evolution of the latecomer firms’ value network, from the perspective of disruptive innovation, mainly goes through a series of processes including identification, iteration and deepening. Finally, this paper contributes to current discussions of how to configure and upgrade the value network in the process of disruptive innovation by an in-depth case study of Xiaomi mobile phone. In particular, with the gradual evolution of disruptive innovation, the latecomer firms should develop strategies of value network evolvement around the interactive relationship between the market and technology, and promote the integration of the value network through strengthening the cooperation to orchestra the huge enterprise ecosystem and strengthen their core competitiveness.