Beyond Disruption: Creating New Markets Without Breaking the Old

How Non-Disruptive Innovation is Redefining the Future of Business

Today, I want to share some reflections on a podcast, "Innovation Doesn’t Have to Be Disruptive" I recently listened to, featuring INSEAD strategy professor Renée Mauborgne. It offered a refreshing and somewhat revolutionary take on innovation. In the conversation, Mauborgne explains a concept she calls "non-disruptive creation"—the idea that we can create billion-dollar businesses and new markets without tearing down what already exists. It made me rethink the ways we define, pursue, and even teach innovation. Here’s why I think non-disruptive creation could redefine how we look at the future of business.

Disruption Isn't the Only Path

In recent years, the word "disruption" has almost become synonymous with innovation. Companies aspire to "disrupt," tech firms compete to "shake up" industries, and we’re taught that to innovate, we must break down what came before. The underlying assumption is that creation requires destruction. However, as Mauborgne points out, this isn’t always the case—and maybe, it shouldn’t be. She emphasizes a crucial question: why should we focus solely on disruption when we could also expand into new spaces that add value without displacing companies, jobs, and communities?

Consider Square, the mobile payments platform co-founded by Jim McKelvey. It didn’t disrupt credit card companies or existing financial institutions; rather, it opened a brand-new market for individuals and small businesses who previously couldn’t afford credit card processing. In this way, Square built a billion-dollar business, expanding the reach of credit cards and bringing value to existing players like Visa and MasterCard. This example perfectly captures the essence of non-disruptive creation: bringing new value to an underserved segment without displacing anyone.

Why We Should Care About Non-Disruptive Creation

Disruption can come with significant social costs. While some argue that disruption is necessary and ultimately beneficial, Mauborgne points out that these costs are often overlooked. Think about the profound impacts on cities and communities when major industries collapse. The decline of Kodak in Rochester, New York, is a textbook example. The shift to digital photography essentially wiped out Kodak’s business, resulting in mass layoffs and economic decline that impacted the entire community.

Non-disruptive creation offers an alternative. Instead of displacing existing players, non-disruptive creation finds opportunities where there’s no direct competition. This approach doesn’t only reduce social costs but aligns with the growing demand for businesses to think about their societal impact. As more companies embrace Environmental, Social, and Governance (ESG) criteria, non-disruptive creation presents a way to generate economic value while contributing to social good.

Identifying Non-Disruptive Opportunities

Mauborgne’s insights also made me think about how we can spot non-disruptive opportunities. According to her, these opportunities are often hidden in plain sight, lying in unresolved problems or unaddressed needs that society has come to accept as “normal.” For instance, microfinance—a billion-dollar industry built by providing loans to those earning less than $2 a day—was born out of a need nobody thought could be met. Similarly, companies like 23andMe and esports opened entirely new markets by identifying unique opportunities that didn’t disrupt existing industries but fulfilled a previously unmet need.

These examples reinforce an essential takeaway: innovation doesn’t always have to be about doing things “better, faster, cheaper.” Sometimes, it’s about looking beyond what already exists, questioning assumptions, and imagining new possibilities. As Mauborgne said, non-disruptive creators don’t start with the world as it is; they start with what could be. This mindset opens doors to truly creative, “brave new world” thinking that can drive both economic and social value.

Non-Disruptive Creation in an AI-Driven World

One of the most thought-provoking parts of Mauborgne’s argument is its relevance in today’s world, where artificial intelligence and automation are rapidly transforming industries. These technologies promise efficiency but also bring the risk of large-scale job displacement. Non-disruptive creation could serve as a buffer. By focusing on areas untouched by existing industries, businesses can develop new job opportunities without accelerating the pace of workforce disruption.

Why This Matters for the Future of Innovation

As I listened, I realized that Mauborgne’s concept challenges not only our view of innovation but also the foundational economic principles many of us have come to accept. Traditional theories, rooted in “creative destruction,” assume that new value inevitably replaces old. Non-disruptive creation flips this assumption. It suggests that we don’t have to destroy value to create it; instead, we can find ways to expand markets and create economic and social value simultaneously.

In a world often fixated on competition, the idea of creating value without displacing others feels both radical and refreshing. What if we moved beyond “win-lose” and considered how to build new opportunities that complement existing industries? Non-disruptive creation doesn’t aim to replace disruption—it offers an additional path, one that businesses, governments, and society as a whole should consider.

Moving Forward

This podcast was a reminder that innovation can take different forms, and we should broaden our perspectives to include those that foster value without upheaval. Non-disruptive creation is an approach that could redefine the way we innovate, especially in today’s rapidly evolving world. Whether you’re a business leader, policymaker, or someone passionate about social impact, it’s time to think about expanding our strategies beyond disruption.

So, let’s continue to challenge the assumption that we must break down in order to build up. Instead, let’s explore the potential of creating new value without the costs of disruption. In doing so, we might just find that the future of innovation lies not only in what we replace, but in what we choose to create.