The Foundation of Disruption

The word “disruption” has lost its fancy, has come out of trend so to say. One of the reasons could be that many founders have found out that actually disrupting a market is an exception rather than a startup rule. In my coachings and workshops I experience a lot of founders not understanding the real foundation of disruption. For me the most important foundation is the connection between Problem, Idea and Solution. Why? Take the next 5 minutes to find out below.

Missing Links & Failure

The root of any startup is a combination of identifying a problem, generating ideas to solve them, and then executing the idea into a solution released to the market. So in general we could say that these three areas relate strongly to each other. We could display this relationship as an overlap of cricles, where the overlapping areas comprise the relationships. So far, so simple. 

However If we look at the reasons for startup failure, most startups fail due to missing relations between Problem, Idea and Solution. In other words, most startups can be found in areas where only two out of three areas overlap. Let me explain this a little more.

Problem & Idea: Bad Execution

Sometimes startups identify problems in a great way, leveraging a great understanding of a problem into a superb idea. However, knowing how to transfer your idea into a solution is just as important. Planning the development of your idea and executing on that plan is crucial to disrupt a market. Additionally, not seldomly startups fail to finance the plan, finfnace through development (or fail to raise finance since investors already see they will not execute properly).

Idea & Solution: Failing Product Market Fit

The most common reason for startup failure however is missing out on the real problem. Having generated ideas and developing a solution alone is not enough. I still encounter many startups that start developing their solution before understanding the problem to the necessary extent. Research shows Product-Market fit to be “fail-reason” number one, closely followed by founder clash.

Proper problem analysis using proven methodologies and practices is a necessary asset for any startup. I can only say: “Founders, do your homework!”

Solution & Problem: Missing USP

The third missing relationship is a straight way into mediocrity. No offense, there is nothing wrong with a healthy SME serving a customer base, however if you say you want to disrupt a market, you should avoid taking this route. If your solution solves a genuine problem in the right way, but does not have an underlying unique idea, your unique selling proposition will be weak. The features, values and advantages of your product or service will be perceived average compared to others. Disruptive growth however, needs features, values and customer advantages to be perceived as obviously superior.

The Foundation: Having all Three Combined

One of the underlying mistakes inexperienced founders make is to think that their initial idea is the basis of their startup. However it is the relationship between Problem, Idea and Solution that should form the foundation. Many great disruptive startups show a mixture following assets:

• a deep understanding of the problem and continuous analysis of its developments and trends in a global context
• professional knowledge & skills in the area of idea generation methodologies and tools
• a strong drive towards lean execution and commercialisation

So the most important foundation for disruptive startups is covering all three areas and the relationship between them.

The Pivot: Keep the Cycle Going

Having a solid foundation for your startup based on a strong relationship between Problem, Idea and Solution is crucial. It will allow you to keep the cycle going if your startups needs to adapt to local markts or even if you’re facing a pivot. 

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