Disruptive Innovation

Many companies, managers and opinion leaders use the keywords "disruption" and "innovation" in a broad and wrong way. We often feel like just hearing an other buzzword again and again. These keywords are the core of the entrepreneurship. We've to understand and follow the true disruptive innovation to find the future great values...

Let's start with defining "disruption". “Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses"?Incumbent businesses mostly focus on improving their existing products or services. Mostly, they're profitable and have a good client base so they're afraid of making marginal changes. They are concerned to launch a new service or address a new client segment for many reasons mostly raised by the top managers in their organization.

Remember, there will always be more people resisting to the changes and that's the curse of the incumbent businesses.

Startups can find different segments to enter the market where the large competitors are not interested in, they can offer services for free or a very low price or they can totally change the way of doing business.

Innovation has many definitions. I can simply define as; "Innovation is the value creation process by applying novelty solutions to the meaningful problems". Without a solid outcome the process will be named as a research.

• If the novelty is not clear, we've to call the process an optimization
• If the outcome is not solving a meaningful problem, we can call it a master piece of art, valuable research paper, etc. Innovation should solve a solid problem.
• If it's not creating value, it may be an invention. Sure, invention can lead to value creation but we need innovators to find the way how to use that invention to create value.

Entrepreneurs should focus on "disruptive innovation", they need to be very careful while using these keywords but more importantly, they need to think the ultimate objective and process sincerely. They've to question if their path is on the way for a disruptive innovation or not. Otherwise, they'll have little chance to succeed against the incumbent businesses with limited resources.

Internet was a disruptive technology. Companies like Google, Facebook and Amazon used it very well. Today, we've blockchain technology. Entrepreneurs can be disruptive innovators using that technology.

International companies were using very expensive conference systems. The suppliers were selling equipments and software globally. Zoom entered the market by providing a very cheap solution while assuring the highest quality just via laptop or any mobile device.

Apple introduced the smartphones in a way that caused major shift from PC to mobile. That created a chain reaction in most of the industries from e-commerce to gaming.

Successful results are not mandatory. Let's say if Tesla bankrupts, will it change the fact that it's a disruptive innovator. It created the path and shifted the market to electrical vehicles and autonomous drive.

We always give examples from the giant tech companies but there are many startups turned to giants by disrupting the conglomerates. Discord entered a crowded instant massaging space by focusing on gamers and providing tailor made solutions. One of our new investments "Perculus" is becoming a major competitor against Zoom in education / training vertical.

As Bo?azi?i Ventures , our investments are focused on the companies which are trying to find the ways to beat incumbent businesses. These companies mostly use the disruptive technologies such as artificial intelligence, deep learning, virtual worlds, digital wallets, blockchain, automation and biotech.

Footnote: This time, I didn't take any support from one of our colleague for the cover image. It took just 5 minutes to create "AI powered ART" using the keywords "Disruption", "Innovation", "Technology" and "Youth"...