What is a disruptive innovation? Is it the spectacular fireworks type of change? Some are, but they are the minority. Most small evolutionary changes that will include one or more of the following: cheaper, faster, more efficient, better quality or longering. In other words something that is perceived as being of a better value than what was there before. If the new innovative product or service is in demand, then a corollary of Gresham's Law will have effect. The better product or service will be purchased and the old product or service will decline in sales. This will often take place very quickly.
Apple is an example of a very innovative company. They have one disruptive innovation after another. The iPod was a revolutionary product. However, it was not that different from other products available at the time. People bought and used portable tape players and then portable CD players. The iPod used newer memory technology to make its iPod smaller and litter that any of the previous products. An added bonus was that it could hold many times the amount of music. This same kind of innovation is evident in their newer products, the iPhone and the iPad.
Six Steps To a Disruptive Innovation:
- Find a product or service that is in high demand.
- Make a list of ways that you can make it cheaper, faster, more efficient, better quality, and / or longer lying.
- Under each of the items on your list, state what the impediment is to making the required change to your product or service.
- Pick a problem or impediment that you can solve. Expend as much time and resources as necessary to solve it.
- Secure the rewards of your innovation by getting a patent or establishing a trade secret.
- Implement it by negotiating with the competitors of the pre-innovated product. Alternately you can start your own company, but that is much harder.
The steps shown are a simple methodology to achieve a disruptive innovation. The rewards can be very great, though the steps may be difficult to fully implement. Consider Google. They came up with a better way to search the internet. There were probably a dozen search engines already. Their approach gave better results more efficiently. They overcame their impediments by using many Phds from different fields. They are now a multi-billion dollar company.