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Is disruptive innovation good?
Pros and cons of disruptive innovation and how to train it
The way to success
If you want to enter the marketplace and success there is only one condition: OPEN YOUR EYES. That’s what disruptive innovation is about, being able to see opportunities in a saturated market. The user is supposed to have all his needs satisfied but if you take a minute to observe his behavior, you will see that things can be done better, simpler and cheaper.
Focus your attention on the user and see what is missing in a specific industry. Change the rules of the sector and challenge big corporations.
Disruptive innovation:
are the processes by which a smaller company with fewer resources is able to successfully challenge larger and more consolidated companies in the market, targeting a new market segment, usually in a simpler and cheaper way.
Break the rules and step away from established radical innovation which introduces new product or service categories or from incremental innovation that simply improves existing products and services.
How to achieve it
Open your eyes (not just literally) check the market and its users, empathizing with their behavior and understanding their needs at a specific moment.
The key to disruptive innovation: to compete with non-consumption.
Focus your attention on a group which cannot satisfy their needs within the existing market, find the reason and provide them value. If it works, you will be able to create a new dimension of functional, emotional and social value through a new business model: “blue ocean”. That will give rise to new income sources and distribution channels.
Such will be the offered benefit, that in many cases the dominant market will move to the new one because of its greater convenience, comfort, practicality or affordability..
Benefits
Disruptive innovation generates many benefits for both the user and the company itself.
Whish to seek new needs stimulates the creativity of companies.
Creativity will be the key to identify process and structure improvements, and encourage the entrance of new ideas and products to the markets that boost the economy.
In addition, startups will have a clear competitive advantage due to its position in a previously non-existent market and a generally cheaper production due to not having technologies nor supply chains to amortize.
We may ask, are they really necessary products? Do these new emerging markets satisfy unattended users or create new needs? Perhaps the answer is the same. If you are not offered a product that meets a need, you will not know that you want it.. So we will not only face new customers but we will also face new challenges and competitors.
Damages
Unfortunately, this is not a smooth process so disruption also has its cons. As it is a new market, you will break with what is established and start from scratch, which will require meticulous research, documentation, market analysis and difficulties in materializing ideas.. Also, be careful with what you offer:
If you’re too innovative, the customer may not be ready for it.
On the other hand, watch out for the greats. Many of the consumers in the dominant market will move to the new sector, which will be good because it will increase our number of users, but the market leader will not be happy and become our competitor.
Bring out the best
As we have already said in other blogs, a disruptive idea is to create “dangerous” ideas and this ability is not only of the brain. To reach the top you will have to train your behavior little by little to generate radical solutions:
You have already seen that disruptive innovation is not so complicated … You just have to develop new ideas that break with your industry. Follow a different way that nobody expects and get the market to generate its own demand.
The risk of failure is very high, but if you find a way, go ahead. Create your value proposition in an agile way, testing clients and moving between their reactions and once you have it, show it to the market with the infallible formula of creativity.
To find the key, you need to train your brain because nobody is going to give you the idea you are looking for. Thus Thinkers Co. has the necessary tools to build your own path, discover how we’ve done it in other companies and do not hesitate to contact us.
If you want to enter the marketplace and success there is only one condition: OPEN YOUR EYES. That’s what disruptive innovation is about, being able to see opportunities in a saturated market. The user is supposed to have all his needs satisfied but if you take a minute to observe his behavior, you will see that things can be done better, simpler and cheaper.
Focus your attention on the user and see what is missing in a specific industry. Change the rules of the sector and challenge big corporations.
Disruptive innovation:
are the processes by which a smaller company with fewer resources is able to successfully challenge larger and more consolidated companies in the market, targeting a new market segment, usually in a simpler and cheaper way.
Break the rules and step away from established radical innovation which introduces new product or service categories or from incremental innovation that simply improves existing products and services.
How to achieve it
Open your eyes (not just literally) check the market and its users, empathizing with their behavior and understanding their needs at a specific moment.
The key to disruptive innovation: to compete with non-consumption.
Focus your attention on a group which cannot satisfy their needs within the existing market, find the reason and provide them value. If it works, you will be able to create a new dimension of functional, emotional and social value through a new business model: “blue ocean”. That will give rise to new income sources and distribution channels.
Such will be the offered benefit, that in many cases the dominant market will move to the new one because of its greater convenience, comfort, practicality or affordability..
Benefits
Disruptive innovation generates many benefits for both the user and the company itself.
Whish to seek new needs stimulates the creativity of companies.
Creativity will be the key to identify process and structure improvements, and encourage the entrance of new ideas and products to the markets that boost the economy.
In addition, startups will have a clear competitive advantage due to its position in a previously non-existent market and a generally cheaper production due to not having technologies nor supply chains to amortize.
We may ask, are they really necessary products? Do these new emerging markets satisfy unattended users or create new needs? Perhaps the answer is the same. If you are not offered a product that meets a need, you will not know that you want it.. So we will not only face new customers but we will also face new challenges and competitors.
Damages
Unfortunately, this is not a smooth process so disruption also has its cons. As it is a new market, you will break with what is established and start from scratch, which will require meticulous research, documentation, market analysis and difficulties in materializing ideas.. Also, be careful with what you offer:
If you’re too innovative, the customer may not be ready for it.
On the other hand, watch out for the greats. Many of the consumers in the dominant market will move to the new sector, which will be good because it will increase our number of users, but the market leader will not be happy and become our competitor.
Bring out the best
As we have already said in other blogs, a disruptive idea is to create “dangerous” ideas and this ability is not only of the brain. To reach the top you will have to train your behavior little by little to generate radical solutions:
- Question the status quo: Ask yourself “why”, the reasons for the activity of things.
- Observe human behaviour: Look at all the details during the development of activities to understand their real goal.
- Associate different concepts: Merge things, ideas, objects, services, technologies or disciplines to create a new concept.
- Look for inspiration from other professionals: Meet different people to inspire and draw on to create your own point of view.
- Experience and prototype: Learn and move forwards via trial and error and question yourself. Become your biggest critic.
- Work in a multidisciplinary team: Combine marketing, technology and product profiles that can provide different knowledge and visions.
- “Startup mindset”: Go from thinking to action to learn from your own mistakes and move forward, do not give up.
You have already seen that disruptive innovation is not so complicated … You just have to develop new ideas that break with your industry. Follow a different way that nobody expects and get the market to generate its own demand.
The risk of failure is very high, but if you find a way, go ahead. Create your value proposition in an agile way, testing clients and moving between their reactions and once you have it, show it to the market with the infallible formula of creativity.
To find the key, you need to train your brain because nobody is going to give you the idea you are looking for. Thus Thinkers Co. has the necessary tools to build your own path, discover how we’ve done it in other companies and do not hesitate to contact us.
Published at 14/04/2020
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