CandleFocus

Disruptive Innovation

Candlefocus Editor
Disruptive innovation is a groundbreaking concept that has revolutionized how businesses operate. It is defined as those technologies and innovations that make expensive or sophisticated products and services accessible to a wider market, challenging the status quo. Pioneered by famed Harvard professor and scholar Clayton Christensen in the mid-1990s, his definition of disruptive innovation is focused on the way technology disrupts the established market order.

At its essence, disruptive innovation isn’t just about the technology itself; it’s about the changes it brings to an existing market or industry. It effectively shakes up the ways things have been done and starts something new, allowing people to access products and services in a different, more cost-effective way. At the same time, it also challenges the traditional players to up their game. For example, Amazon, which started as an online book store in the mid-2000s, is one of the greatest examples of a disruptive innovation, unsettling the traditional brick and mortar retail industry.

The success of such innovation depends on three elements - enabling technology, innovative business models, and a coherent value network. Take enabling technology as an example, even though it is necessary for any disruptive innovation, the most important thing is to choose the best technology to enable your business goals. For example, if you are looking to enter a B2B market, then you need to find a technology that is capable of handling financial transactions and managing inventory as well.

In addition, in order to make the disruption successful, one needs to have an effective business model. This involves understanding the needs of the target market and coming up with a compelling value proposition that meets those needs in a disruptive way. It is a way of delivering value by targeting areas currently under-served by traditional players.

Lastly, a coherent value network needs to be established. It is an integration of the technology, business model, and products/services created by firms which gives customers access to the innovation. It is important to ensure that customers can find the solution and interact with the firm to avail the new service or product.

In today’s business climate, disruptive innovations are changing the way we do business and expanding the scope of possibilities. From online retail, enterprise SaaS, ride-sharing, and eCommerce, it is clear that disruptive innovation has been, and will be playing a critical role in driving progress.

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