Disruptive innovations are products, services, tech, and innovations that have been ‘transformed.’ Once transformed, they are typically more affordable and accessible to more people. The ‘disruptive’ part of the concept refers to a long-standing and established product or service that the innovation turns on its head.
Business owners need to be aware of what disruptive innovation is to benefit from it or avoid its effects. Here are just some of the many crucial factors to become familiar with:
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Timing is Everything
Many business owners understand that timing is everything regarding disruptive innovations. They can see potential innovations emerging and can act fast to respond to them to avoid being left behind.
Whether you have the best office near the Melbourne CBD or operate solely online, never stop looking at what’s happening in your sector or industry. You can then prepare for significant changes that threaten to cause major upheaval.
There Are Specific Requirements
Not every innovation and new product that hits a market is a disruptive innovation. They must meet specific requirements, including being more accessible and affordable for customers. They must also be beneficial for suppliers, partners, distributors, and contractors.
Other requirements include:
- Enabling technology – technology that changes or improves processes
- Innovative business model – a business model that targets new customers with innovations
- Coherent value network – business partners benefiting from disruption innovation
You Must Know What You’re Looking for
There is no singular type of disruptive innovation. They can be anything that disrupts a business. However, some disruptive innovations are more common than others.
Amazon is one of the most well-known disruptive innovations in the bookselling industry. Amazon was able to reach more buyers and offer competitive pricing without owning physical stores.
Netflix was also a significant disruption in the media industry. This company’s innovations almost spelled the end of all Blockbuster businesses. Rather than visiting a video store, movie fans could enjoy mail-delivered DVD rentals followed by online streaming. There is just one Blockbuster store remaining in Bend, Oregon.
You Can Adapt or Disrupt
When you face a disruptive innovation, you have a choice. You can choose to adapt, or you can choose to create further disruption. Your actions may influence whether your business flourishes or takes a nosedive.
Choosing to adapt means changing your products and services to utilize the new technology available. For example, a brick-and-mortar business would adapt by offering its products for sale online when eCommerce was invented.
Alternatively, you can choose to disrupt. This means further disrupting your market by introducing more innovative solutions than those already on the market.
Customers Can Help
As business owners and employees, we see ourselves as customer helpers. They come to us with problems. We go the extra mile to provide solutions. However, customers can help us when it comes to disruptive innovations.
When we provide avenues for feedback, we learn about emerging trends and potential disruptions. We also learn what customers want and need to stay satisfied. If you make it easy to receive feedback and criticism, you can continually improve your everyday practices. This can often involve innovating and making upgrades you might otherwise not think necessary. Disruptive innovations can then be less of a shock to the system when they take over your entire industry.
Disruptive innovation may not be something you encounter in everyday business, but it’s important to be knowledgeable about it. Being informed can mean you’re better positioned to spot it and use it to your advantage.
