What Disruption Really Means For Business.

“Disruption”! If only I had a nickel for every time I heard that phrase, well, let’s just say, “I would be writing this while flying to my own island in my own private jet! So, does this mean the phrase “disruption” has become overrated and it’s time we retire the buzzword? Our take is that instead of retiring the buzzword completely, we just need to kill the negative connotation that most start-ups seem to associate with the word ‘disruption’. Disruption doesn’t have to be a word for threat to established business models. Instead, it can be a method of looking inwards and focusing on creating values for the customers rather than trying to be one up on the competitors.

Constant and constructive disruption is positive and keeps the organization on their toes as they look forward to staying at par with start-ups coming in with new zeal and fresh ideas for doing businesses.

 

What is Disruption?

So, what exactly is disruption and how is it affecting the way marketplaces and businesses are evolving? Disruption in simple terms can be described as a wave of change in the way things are being done since ages. In the late 1990s, the Harvard Business School professor Clayton Christensen defined the concept of “disruptive innovation”, a principle whereby entrenched, dominant product or service providers could be unseated in the market (have their leadership position disrupted) by smaller rivals who offered solutions more simply or at less cost.

To put it in business terms, disruption is the change in way companies design, deliver, and serve products and services to the consumers. In today’s world where companies operate in a complex business environment, which is diverse, dynamic, and integrated, like never before, vulnerability to change is obvious, especially for the ones who have failed to incorporate change. Hence, we can say that the success mantra towards building a sustainable organization lies in its ability to adapt and not only accept the new order but blast open new opportunities from it.

 

Then and Now

Since the book “Innovator’s dilemma” hit the stores, people took the word disruption coined by Mr. Clayton seriously. He spoke about how companies will miss out on seizing new innovation opportunities as they fail to keep their ears on the ground and put money where it matters. To look at it more closely with an illustration, the trends that have followed the digitization revolution and budding opportunities in AI are prime examples. Many businesses failed to keep up with the rapid changes happening especially in the mobile landscape. Organizations that jumped on the bandwagon of digitization and automation in time arguably have better customer satisfaction.

Disruptions in the past decade have not only assisted companies but have helped the end user substantially too. The distance from company to consumer is down to fraction of a second enabling higher level of integration and engagement.

 

Looking Ahead

In this time of disruption and booming innovation it’s essential that organizations invest in the right research and development option and look at suitable channel partners who can help them accelerate growth while staying ahead of times. The nascent technologies of today like blockchain, crypto currency, etc., can become next big thing in terms of business. As we look ahead it is essential that a company formulates an innovative approach and portrays a sustainable strategy for its stakeholders. Challenging the status quo and taking calculated risk has become the need of the hour but the disruption should be projected inwards before outwards.

 

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