Dominant firms are often stumped by disruptors coming from the bottom-end of the market. However, they can counter this is by ‘spinning-off’ a separate firm to take on the start-ups. Start-ups need visibility and reach to compete. Even though it’s risky, it achieves quicker results and recognition.
Disruptive innovation is accomplished through the ability to look at an existing idea in a different light. Most significant creations are derived from an established system, which gradually evolves to a new one. For example, a log inspired the wheel; the wheel inspired the creation of transportation such as buses, trains, and cars. It’s in the perception of an idea and its capability that results in a brand-new application or idea.
Where It All Began
The term ‘disruptive innovation’ was a term invented by Harvard professor Clayton Christensen in 1997. Even so the actual process has been around much longer. It is defined as a process in which a smaller organisation with fewer resources is able to successfully challenge established incumbent businesses. They surpass the market, succeed, and become the new world order.
Some terrific examples of disruptive innovation include the following:
- The transistor radio, which surpassed the analogue radio
- The pocket calculator, which surpassed the desktop calculator
- The telephone, which surpassed the telegraph
- Cell phones, which have mostly surpassed home phones
- Self-driving cars, which are being set up in order to overtake human-driven cars
As you can see, disruptive innovation is all over the place. With technology becoming more and more sophisticated, we’ll see some incredible innovations taking place before our eyes. Just think about Netflix as well as what that did to the movie and satellite industries. Think about telemedicine in addition to what that’s going to do to the health industry. Disruptive innovation takes place before our eyes every day.