The Urgency of Radical Innovation

We often confuse industry with markets. We see see growth through greater market share more than the creation of new markets. It’s natural then when we think about innovation we turn to disruption. Uber, Airbnb and other giants of digital transformation come to mind.

Radical innovation is different. It’s more about the creation of new markets, businesses and industries than the disruption of existing ones. In a rapidly changing world even disruptive innovation becomes commoditized. Is radical innovation our new DNA?

Radical Innovation belongs to the world of Blue Oceans.[i]

New markets like sustainability, wellness, mobility and identity that cross industry lines are rapidly creating new opportunities to create economic value. “There’s gold in them there hills.” Why waste time competing with each other when there is more than enough opportunity for all. The 4th Industrial Revolution is rapidly becoming a flight from industry as more companies jump into other industries having exhausted value in their own.

Is “retail” an industry or a method of distribution. Banks, airlines, media and communication, autos, healthcare even social media companies are in the “retail industry” or simply retailing. Some rechnology companies are jumping into almost every industry and everyone into technology. We all struggle to be more green than brown.

It’s not technology that’s disruptive but whether we have a fixed or growth mindset.

Imagine two circles: one blue, one white.

The blue circle represents innovation we are familiar with. This circle is characterized by competition and disruption as enterprises vie with each other for market share in an industry they are already in. KPIs are things like GDP, ROI, ROA, etc. The language is one of playbooks and processes. Most businesses operate within the blue circle. There are exceptional starbursts but most growth is at or near GDP rates.

The white circle represents radical innovation, creating new markets and businesses. The electric light, the automobile, the airplane, the internet, artificial intelligence, etc. Here innovations spawn new enterprises and industries while empowering existing ones. KPIs in this circle are more intangible than tangible. Language is about ideas, culture and mindset. Growth is 10X. Playbooks and processes cast aside.

In the third decade of the 21st century let’s shift from disruptive to radical innovation, creating jobs and businesses, not eliminating them.

Embracing our most difficult challenges. Not those easiest to solve for.

Empowering every individual and institution on the planet to achieve more.

[i] “Blue Ocean Shift- Beyond Competing” – W. Chan Kim, Renee Mauborgne