Disruptive Innovation
When market leaders take their position in the market and transform the industry, disruptive innovation occurs when a product or service is more affordable, more accessible, and frequently performs better than the offerings that are currently available.
Because they focus on areas that leading companies consider to be less profitable or for which there is no other option, disruptive innovations also frequently target the lower end of the market.
It is essential to have a thorough understanding of your company's culture, to be adaptable when implementing new ideas, and to be open to changes in order to survive the change processes brought on by disruptive innovations.
Making sure that employees are open to a culture of innovation is another important issue. One of the most important factors that will ensure the company's survival in the rapidly changing global economy and conditions is the management team's awareness of the effects of disruptive innovations that will fundamentally alter the industry in the future. In this context, it is essential to provide employees at all levels with the opportunity to follow new developments and carry out novel work within the organization.
The following are successful examples of developing the right strategies to combat disruptive innovation or a disruptive innovation strategy:
- Amazon has revolutionized the entire e-commerce sector from its humble beginnings as a book retailer online only.
- Netflix, which offered film rental administrations with a post administration when it was first settled, later moved motion pictures and series to an internet based stage and changed the media business.
- WhatsApp has advanced to the point where even money can be transferred from customer management, making an existing method of communication faster and more affordable.
Companies have their own innovation culture, which is the reason for this success. The fact that the business stays abreast of developments in the industry in which it operates is yet another crucial aspect. While many significant shifts are also taking place in the production and service industries, such disruptive innovations typically occur in the fields of technology and informatics.
Foster a culture of innovation, stay adaptable and follow new developments to thrive in a rapidly changing economy.