Innovation is not something new. Humans have been innovating since the beginning of time, using the technologies available to us. However, disruptive innovation in businesses is indeed something novel.
Disruptive innovation involves the application of new ideas that lead to the modification of products, services, and processes, generating drastic changes in the market, companies, and consumer behavior.
Its purpose is to make products and services more affordable, accessible, easy to understand, up-to-date, and focused on improving the customer experience.
Disruptive innovation involves offering solutions that didn’t exist before due to technological change. In the case of businesses, the disruptive factor isn’t this change but the transformation of the business model.
Many times, innovating involves creating a new product or improving an existing one. In the business environment, this means that market leaders can be displaced by other organizations that embrace disruptive innovation to optimize their products, processes, and services.
Currently, disruptive innovation has become more of an obligation than an option. Companies are compelled to introduce innovations, as failure to do so could lead to their extinction.
Having a professional to assist us at this stage can make the difference between a successful business and an unsuccessful one. One of the most reliable options is CPA Houston: Evans Sternau, a global network of committed CPAs and accountants that focuses on providing customer service strategies and resolving industry challenges.
There are two main types of disruptive innovation:
Low-End Product and Service Innovation: This involves innovating lower-end products to meet the needs of those who can’t access higher-end goods or services, a market niche that is often overlooked by most companies.
New Market Innovation: In this case, disruptive innovators create entirely new markets that didn’t exist before.
The concept of disruptive innovation implies a process that can be applied to any industry; we just need the right information or guidance to execute it successfully.
In this regard, working closely with a consultancy that advises companies on how to structure this strategy will be crucial for its success. Some of them, like Evans Accounting, offer comprehensive services that allow you to transform your business model while minimizing unnecessary risks.
If you’re considering implementing disruptive innovation in your company, here are some key points you should take into account for its proper development.
Uncover Unmet Needs
One of the characteristics of disruptive innovation is solving problems. For example, startups focus on a specific but overlooked market niche with an unmet or unsatisfactorily met need.
Applying this principle to a company is a two-way path. You can think disruptively outwardly, asking yourself, “What’s the need for a specific niche? What product/service can I create to satisfy that need?”
But you can also think disruptively within the company: What’s the need of my company that isn’t covered? Are my customers and collaborators satisfied? What internal changes can I make to innovate within my organization?
Offer Simpler and More Affordable Products and Services
If, by definition, disruptive innovation addresses an unmet need, this means that we need to create the option by offering alternatives to the markets. These disruptive products and services must have an accessible price, sufficient initial quality, and potential for continuous improvement.
This implies that users should perceive the alternative as sufficiently good, but they should also know that it’s not the final product, as it will have permanent updates.
Currently, this concept is deeply ingrained, thanks to the constant updates of the operating systems we use on computers and phones.
Allow Yourself to Fail
There’s no innovation without experimentation, and experimentation leads to errors, which in turn leads to learning. Disruptive innovation embraces error; in fact, it celebrates it because it’s the only way to find new ways of doing things.
When an idea emerges, the initial impulse is to think about all the ways it won’t work. That’s why it’s important to shift the mindset toward a more innovative one, where the focus is on what can work. It’s understood that failure is part of the process, not the end.
Uncomfortable questions are the “fuel” for innovation. Questioning is one of the easiest and most effective ways to be disruptive. Only by breaking down established barriers can space be created for those willing to innovate.
Question everything from how to improve your business to things that aren’t working anymore. Break away from the common answer, and the excuse of “this is the best we can do.” Ask yourself, “What if we make it even better? What if, apart from making it better, we make it faster?” This way of thinking should prevail throughout the company, from mid-level to top executives.
Involve the Entire Company
Implementing disruptive innovation in a company is a process that requires collaboration from all parts. This involves creating an innovative culture within the organization.
While a specific department might lead technological advancement or prototyping of new products, the entire company must be involved. Otherwise, internal obstacles that can hinder transformation might arise.
The best way to unite teams around innovation is by sharing the purpose with everyone, the “why” behind finding new solutions, and the driving force behind the change.
And a minor detail: Companies with purpose are more likely to achieve significant progress in their transformation processes. So, start by putting into practice the task of questioning everything and asking yourself, “What’s the purpose of your company? Is it an innovative purpose?”
And don’t forget, the path will have errors, but that doesn’t mean you’re not heading where you want to: a company that dares to break with the established to maximize its performance and reach, a company with disruptive innovation.