Wanting change is one thing but can your organization cope with disruptive innovators? We often hear that businesses and organizations of all sizes crave to be more innovative. They certainly do not want to be ‘out of date’, and want to keep providing customers with the products and services they need. But do we really understand innovation and the costs? Do we really want innovative companies? Are we prepared to disruptive our whole industry, and put some of our cash cows to bed?
Disruptive innovators
There is the long story of the “ever lasting light bulb” that was never put into production because of fears that it would destroy the industry. Of course we will never know if this is a conspiracy theory or reality. What we do know is the modern LED lighting with 10s or 100s of thousands of hours of life is almost ever lasting! What would your firm do if it had such an innovation? Would it hide it for fear of losing its cash cow? Certainly the publishing sector were the slowest to adopt e-readers, and that gave amazon the head start they needed with kindle and their own publishing arm.
What is Innovation?
Dr Jacqueline Byrd is the CEO and creator of the modern Creatrix Inventory. This is based on over 40 years research into innovation. Both innovative companies and innovative people and the culture required to poster both.
She uses the definition, the innovation equation:
Which seems to be appropriate in all situations. Some sectors may feel uncomfortable with the term “risk taking”, but from a behavioral point of view it is accurate. This approach has worked well with small, unknown firms such as 3M, Yumm Foods and John Deere. So this is no flash in the pan.
Can your organization cope with disruptive innovators?
How does a small new business compete with larger, established businesses? This short video outlining Harvard Professor Clay Christensen’s landmark theory:
Professor Clay Christensen‘s theory on Disruptive innovation can be described as:
Professor Clay Christensen disruptive innovations Source
There are lots of examples of disruptive approaches. These include Uber, Toyota and Amazon. The problem is that many firms look to add value, rather than just deliver the service customers want. Just look what the innovation of the shipping container did to the world of logistics. In one way it removed the need for bulk carriers. In others it created an easier way to move goods. Toyota and Amazon are doing ok, but other firms are snapping at their heels! Look at the growth and adoption of contactless payments. Small businesses that do not adapt are losing business.
One thing we know for sure, disruptive products create markets.
Have you and the management team of your organization looked at what you offer? are you at risk of a disruptive technology or approach? In the past 25 years, the chemical firms, VHS tape makers and CD/ DVD manufacturers thought they were doing well. Who saw the digital solution that was going to take away the need for a physical product. Lets not even think about photography and one of the worlds largest chemical firms – Kodak! Look what tablet computers have done to the home PC market, and then what phones are doing to the tablet market!
Fit bands have changed the way many people think about and engage in exercise.
Use tools like PRIMO-F and PESTLE Analysis to explore potential risks.
Wanting change is one thing but can your organization cope with disruptive innovators? Most managers ignore these truly innovative approaches for sacred cows and cash cows must be protected.
What risks and new products do you see in the market today that could change entire industries in the future?
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