Note: Analysis of the Article «The Other Disruption» in HBR: https://hbr.org/2016/03/the-other-disruption - Joshua Gans
Joshua Gans is a professor at the University of Toronto's Rotman School of Management, where he holds the Jeffrey S. Skoll Chair of Technical Innovation and Entrepreneurship. He is also the chief economist of the University of Toronto's Creative Destruction Lab and the author of The Disruption Dilemma (MIT Press, 2016).
The other disruption
When innovations threaten the organizational model.
Innovation is the main axis for a small entrepreneur to become an industry giant, it is the window of opportunity to enter the market.
Any innovation in its first appearance will have a negative or positive impact as the case may be, but it must be taken into account that the innovation is regularly rejected by the market before being accepted since it takes time for customers to accept it and that happened with Any innovation is why it is first tested or Spots are announced that they have arrived on the market before their production in order to see the areas in which they can improve.
In this case we will talk about an article from Harvard which refers to disruptive innovation, something that in particular I found very interesting since this innovation offers opportunities that can be taken advantage of if you are just positioning yourself in the market with a prodigy new service. A disruptive innovation analyzes giants in the industry where we want to innovate to study their tactics and what they are doing to do something unusual different from what is already being done since large companies focus on a single specific segment or their traditional customers of years.Forgotten to other customers what offers a window of opportunity to focus on those customers, in this way different options are offered either by having a lower price or having different alternatives of products that they are interested in buying.
Disruption begins with a very low and technical scale but that, compared to a traditional innovation, disruptive innovation evolves faster and is scalable unlike the traditional one that is becoming slower and slower, a clear example of kodak that remains linear what at that time his innovation led him to be one of the best, his very innovation was what led him to bankruptcy. Likewise, its competitors that at that time covered a small scale in the market with disruptive innovation evolve literally destroying the competition and evolving in the photographic market.Another great example is that of Netflix, which also began with a disruptive innovation with the simple fact of sending rented movies home to offering a streaming service and later producing their own movies and series.
This is what a disruptive innovation refers to, which is why they threaten the organizational system since this breaks the traditional or the elemental by focusing on a sector that some industries are not covering little by little diversifying in the market evolving improving the product until reaching to compete with companies that cover most of your customers. Disruptive innovation is the perfect opportunity to start working and evolve.
Innovation is not always creating something new that has never been created, but with the simple fact of improving and carrying out a process that no one is implementing that is innovating. Entrepreneurs should study more articles about disruptive innovation or study Clayton Christensen who has written several books about innovation, the different types of innovation, deep investigations and how a small innovation can cause drastic changes in a company.
To conclude, I would like to emphasize that it is vital to know what innovation you will use in your product or service, if you are a small producer to find out about disruptive innovation and how to implement it in your business.
And finally, never stop improving and remember that your innovation that led you to success may be the same that leads you to bankruptcy if you do not innovate
