“Disruptive Innovation” - Revolutionizing the way we do things

Disruptive innovation is a term coined by a Harvard Business Professor Clayton Christensen to describe a process by which a new product or service (typically from a small and unknown company) completely disrupts an established market and displaces existing market leaders.

Unlike sustaining innovation which refers to incremental improvements made by established companies to their existing products or services, disruptive innovation introduces a game-changing solution that meets the needs of a different set of customers and are often at a lower price point

Quick examples of Disruptive innovations include:

• The personal computer, which disrupted the mainframe computer market.
• The Internet, which disrupted the traditional media industry.
• The smartphone, which disrupted the mobile phone market.
• Netflix, which disrupted the traditional video rental industry
• Airbnb, which disrupted the hotel industry
• Uber, changing the travel Industry
• Online education, which changed the traditional brick and mortar

Businesses are big time gaming on disruptive innovation. This means being open to new ideas and being willing to change your business model as and when needed. It also means being constantly on the lookout for new opportunities to disrupt your own industry.

Few Basic recommendations :-

• Be customer-centric always

Focus on understanding the needs of your customers and finding ways or solutions to meet those needs better than your competitors. Be innovative and experiment with new ideas and technologies.

• Target an Underserved or a Niche market

Start by addressing niche markets or segments that are not appealing to established companies. Then gradually improve over time, gaining credibility and expanding target audience. By focusing on a smaller, underserved market, disruptive innovators gain valuable insights and refine their offerings until they become a force to be reckoned with in the mainstream market.

These target customers may have needs and preferences that are actually not being met. They may either be due to high prices or inadequate performances

• Lower cost and Focus on Simplicity

One of the hallmarks of disruptive innovation is its ability to provide a lower-cost alternative and still deliver satisfactory performance. This is achieved by simplifying the product or service, eliminating unnecessary features and leveraging technological advancements to drive down costs. As a result, disruptive innovations are available and accessible to a wider audience.

• Technology Empowerment

Disruptive innovation often relies on the advancements in technology to enable new possibilities. Whether it's the internet, mobile devices or artificial intelligence, these technologies have the potential to disrupt existing markets by enabling new business models and changing the way we live, work, and interact.

As we move forward, it is crucial for companies and individual leaders to embrace disruptive innovation, adapt to changing market dynamics and constantly challenge their own assumptions.

Disruptive innovation is a powerful force that reshapes industries and challenges the status quo. The examples cited above such as Netflix, Uber and Airbnb demonstrate that with the right blend of vision, strategy, and execution, companies can disrupt established markets and unlock unprecedented value.

Books that can help

"The Innovator's Dilemma" and "The Innovator's Solution" ?

By Clayton M. Christensen

Happy reading and innovating!