Site icon Connectnigeria Articles

Understanding The Concept Of Disruptive Innovation And How It Works

Chidiogo Akaelu

In The Black

  We’re often exposed to media content, talking about the concept of disruption but rarely do we understand what it entails and how it can be achieved.  The level of technological development today has transformed the world into a place of endless possibilities and opportunities, with the launch of new products and services at an increasing pace.
Read more about Business
It is an innovative age, thus, new solutions are founded on existing technologies, faster than we can imagine. There is a wave of technological and innovative growth ahead of us, which would lead to the transformation of every industry. Now let’s break this down. The theory of Disruptive Innovation was introduced by a Harvard Business School Professor, called Clayton Christensen, in 1995, while researching the disk drive industry. The term was also featured in his book, titled The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail in 1997. The Harvard School Professor brought forward the fact that there are two types of technologies that businesses deal with – Sustainable Innovation and Disruptive Innovation. Sustainable Innovation is an innovation geared towards making an existing product and service better for already existing customers, based on market or customer need. It has to do with an upgrade in a product or service, so it can remain relevant and competitive. For example, CD is sustainable innovation, because it was introduced to hold a large volume of music files. Disruptive Innovation, on the other hand, is an innovative process that brings about the transformation of a product or service into simpler and more affordable options for unmarketable customers. A disruptive Innovation to the CD invention is the introduction of Internet Digital downloads, making the CD obsolete. Disruptive Innovations go beyond improving existing products for current customers. Disruptive Innovation brings about a displacement of market leaders. The use of smartphones for computing needs, instead of laptops or desktops, is a disruptive Innovation.
Sign up to the Connect Nigeria daily newsletter
For an innovation to be a successful Disruptor, there must be a beneficial point for partners, distributors, suppliers, and contractors. Below are the core requirements of a Disruptive Innovation:
  1. Coherent Value Network: In adopting a disruptive Innovation, the business partners must subscribe to the new business model to prevent failure. Not keying into the goal of disruption will make the results of old network processes yield undesirable results.
  2. Innovative Business Model: This business model targets bottom tier or new customers using Innovation. Innovative Business Model seeks to present economical solutions which are easy to use.
  3. Enabling Technology: These are innovations and technologies that improve the processes of how people do things. The speed at which a market is disrupted depends on the swiftness of the technology involved. Enabling technology makes possible the affordability and availability of a product to a wider market.
In preparation for a Disruptive Innovation, a company should do the following:
  1. Listen to Customers: Organizations have to conduct surveys and reviews to understand customer needs, as this would give them an idea of how to structure the innovation to suit their needs. It is through this method that smartphone innovators got to understand that people want something portable, as against laptops and desktops, which would give them access to a whole lot of internet services. The idea for a new disruptive innovation lies on your customers’ lips.
  2. Observe Industry Trends: Being innovative doesn’t just involve looking ahead and doing your own thing, but involves looking around to see what others are doing. Keeping an eye out for changes in market trends would not only help you understand what others are doing differently but also presents you with new opportunities.
  3. Concentrate on Business Model Innovation: This helps to change how your organization renders value to customers or attracts potential customers in the market. To achieve this, a Business Model Canvas can be used to explain, design and revolve your business model.
  4. Be Patient: Market disruption is no child’s play and should be approached with patience. Disruptive Innovation doesn’t happen overnight and can occur through smaller incremental improvements. Have a clear picture of what you want to achieve and patiently go through the process.
Featured Image Source: In The Black
Got a suggestion? Contact us: editor@connectnigeria.com
Exit mobile version