Disruptive innovation means addressing a market segment that is untouched or un-served, and ultimately ignores established competitors. It also refers to an innovation that redefines the face of the industry in which it operates, and creates its own market and value network. Often there are conditions that lead to disruptive innovation. These conditions are as follows:
• Unused target segment or unsolicited demand from customers,
• Few resources,
Operational and vascular inefficiencies of established players,
Traditionally, traditional players of the market focus on enhancing their existing products and services for income concentration points, exceeding the needs of some segments and ignoring others. Innovative contributors that are disruptive in the long run target the still invisible, untouched, and intact parts of the business. They begin their journey by gaining insight by offering services or products that are not expected from the traditional. Those in office lose their advantages as they cannot respond to the dynamic market.
Making Interruption Easier
Netflix is the world’s most premium instant video streaming business. It has brought a revolution in the video content streaming market, creating the classic breakdown in the industry. Some DVD industries have allowed the development of a new format by shutting down the video rental business on the face of video streaming. As a foreigner, Netflix has seen the DVD business come with its own challenges to recession and piracy regulations. As a result, Netflix has created a business that offers affordable pricing, accessibility and availability to highly disloyal customers.
Low End Distortion and New Market Distortion
Low-end disruption includes initiatives that occupy the base of the market pyramid and provide satisfactory services. This segment becomes a mediocre profit zone for traditional businesses. Therefore, businesses that have a career rise more when any of the new businesses introduce themselves. In other words, they direct their operational energies to regions of relatively high risk and therefore higher profit.
The new market disruption is related to businesses competing with new products for consumption in industries with lower wallet share in line with the demands of the market. In line with the low level of disruption, the products presented here are satisfactory and the surfacing business profits at these reasonable rates. The main fact that sets such cuts apart is that the former focuses on well-fed customers and the latter clings to potential customers.
Old Blackberry Phones
From 1984 to 2007 are the times when Blackberry reigned in the market with popular innovative product and service launches. It is possible to see the predictable implications of Blackberry’s adaptive cycle. Secure data link networks, where Research In Motion is exhausted and protected, make the company the leader of the market in corporate communications. In 2002, the telephone market expanded with the development of technology, and the product portfolio was significantly renewed through innovation and restructuring. Products such as Pager and consumer-centric products such as the BBM messenger service have been launched. This kind of sensitive attitude to the nuances of the product and the market made them an extremely valuable organization in 2007.
In 2007, Apple introduced the iPhone, which Apple claims to have redefined the phone. The reinvention of an existing service and product is a well thought out strategy that is extremely well crafted from the success of its urgent competition, which is also the biggest player through its innovations. After witnessing this promotion of the iPhone, the domino’s misfit disorder has occurred in Research In Motion. There is a situation where a business stumbles in one or more stages from its peers in terms of adapting to dynamic market conditions in the field of leading innovative propositions. One common argument is that in the case of pioneers and innovation, the domino’s mismatch is one step behind the immediate competition of a company. Therefore, due to the advantage of the first move, it loses market dynamics, causing it to miss opportunities.
Perhaps that is why no one has noticed that the Blackberry has been erased from the market like classic Nokia phones. All of this is Apple redefining innovation for a smartphone and forcing all participants in the market to either align or kick out. Because none of them have passed the innovation that determined the fate of the market for quite a long time.
Sustaining Innovation and Disruptive Innovation
Current players on the mission may only be enhancing variations of the popular items available just to stay in the game. No business can sell in an offer to avoid innovation. Therefore, sometimes nitpicking on your own or a competitor product becomes the only innovation some businesses offer, and this sustains innovation. Breakout offers are like fads that significantly increase gameplay in the current players and product area. The stylishly developed Motorola Razr has been a great success for Motorola’s business and image with its highly contemporary challenging design. Consumers have not been able to assist in redefining existing data and understanding market preferences. It even became the best selling market for flip phones overnight. But it only declined earlier due to the commotion for the design.
Often times, a disruptive innovation is stuck in a system developed around the idea of creating sustainable offers. The success of any innovative project depends less on the quality of the idea and somehow on the quality of packaging the idea. Blasting projects illustrate the importance of establishing different parameters and procedures before each attempt. Thus, the organization knows its intended criteria and can customize its packaging accordingly. For disruptive innovative efforts, gains often require different R&D processes, relatively laborious funding procedure, and varying performance expectations that will challenge the data under consideration.
A business must customize the business development procedure for any potential innovation the organization can detect. With this personalization, it can provide itself the opportunity to generate new product revenues while simultaneously leveraging future opportunities. To justify this purpose, the business must categorize its concepts related to the new portfolio from continuation, breakout or destructive classes. Embracing risk and reward becomes easy here. It is desirable to achieve a healthy balance of all three to meet the needs of today and tomorrow. Alternatives can focus their innovation energies on prioritizing the development of breakout breaths and deliberately minimizing disruptive opportunities. Categorizing innovations can be an effective way to achieve the right balance of risk and reward. Because this is the sole purpose of pursuing the innovative opportunity, the demise of the market must be kept and a new market created.
Author: Ozlem Guvenc Agaoglu