Step Up & Disrupt the Future

In our Greenlabs incubation program, I emphasize this critical mindset to every entrepreneur: question everything. Don’t assume the people you’re reaching are your customers. Don’t assume the problem you’re addressing truly matters. Don’t assume your solution is the ultimate answer.

“Assumptions are made and most assumptions are wrong.”-Albert Einstein.

This mindset of continuous questioning is the foundation from which I approach the concept of disruptive innovation. Here’s how I define it…

What is a Disruptive Innovation?

My simple definition of disruptive innovation? It fundamentally changes how we experience something.

Consider Thomas Edison’s phonograph, invented in 1877. While its initial purpose was relaying messages, it soon revolutionized music. In the late 1800s, listening to music meant attending a live performance—an event you had to plan for and be physically present at. But with the advent of the phonograph, later evolving into the gramophone (the origin of the term "Grammy"), people could enjoy music anytime, right in their own homes. It transformed music from a rare event into an everyday experience, marking a major shift in how people engaged with sound.

Why is it Disruptive?

Disruptive innovation doesn’t stop at transforming experiences; the true disruption begins when people start predicting its potential to upend the existing order.

When the phonograph started gaining popularity, it sparked concern across various communities. Performers worried that the music industry would collapse; they feared people would abandon live performances altogether. Some predicted that without the thrill of concerts, children would lose interest in learning music altogether. Critics from different fields raised alarms about a decline in social interaction. In the past, music was a shared experience—a reason to gather, connect, and socialize. Now, people could listen alone in their homes, potentially fostering isolation.

Child psychologists took it a step further, predicting a loss of the “human touch” for future generations, imagining mothers might stop singing lullabies themselves, relying on machines to do it for them.

"A common characteristic of a disruptive innovation is that people tend to extrapolate pain. One perceived negative consequence always seems to add to another big one."

The Musicians’ Association took their opposition to recorded music to a dramatic, even spiritual level. They argued that recorded music was essentially “dead music,” lacking the soul and vitality of a live performance. One of their campaign slogans asked, "Why Choose Death over Life?" This pushback gave rise to the term “Live Music,” emphasizing the vibrancy and authenticity of performances happening in the moment.

How to Harness Insights

Most business books emphasize the importance of talking to customers and incorporating their feedback, and generally, this advice holds true—I even encourage it myself. But when it comes to disruptive innovation, customer feedback often misses the mark.

"The customer is always right, in matters of taste,"-Harry Selfridge. This means that if they wanna buy an ugly hat, let them - they're still buying it. It doesn't mean they're always right though. Cutting a saying in half often misses a lot of the meaning. Next time use the full quote!

Looking at the music industry in 2023, it’s clear just how mistaken the performers’ early predictions were. The industry has seen steady growth in sales, with live shows now accounting for over a third of total revenue. Beyond that, performers have access to multiple income streams, including live performances, digital downloads, royalties, and even physical CDs.

So if the customer is wrong what insights should we be looking for?

1. What new things customers will be able to do with the innovation?
2. What new behaviors are a result of the innovation?
3. What good can come from the innovation?

Modern-Day Disruptive Innovations

Looking back, the concerns from the late 1800s may seem extreme, but in reality, we're doing something similar today. Many people are predicting worst-case scenarios around AI, cryptocurrency, and other emerging technologies, projecting fears about the disruptions they might bring.

What you should do instead is treat these innovations as experiments. How?

1. Embrace them. Before deciding whether they are good or bad, take a neutral stand.
2. Educate yourself. Do not rely fully on the opinion of people; take time to dig deeper into these innovations so that you gain understanding.
3. Enterprise. By doing the first two steps, you are probably seeing opportunities that others are not. Grab them.

Do You Have a Disruptive Innovation?

The call for applications for our 2025 Innovation Challenge is open. We welcome those with disruptive innovations to take a chance at building an enterprise.

Come experiment with us. Embrace the Innovation. Educate Yourself. Enterprise.

Register now, the call closes on November 30th.