There are at least two types of innovation, the one incompatible with the other: ► incremental innovation (a linear evolution made of an increase in the performance of models of consolidated products). And ► disruptive innovation (which consists of a “revolution” of the context of linear innovation paradigm – examples are: the car that replaces the horse carriages, and the airplane that replaces the dirigible in civil aviation).
Today there is a SERIOUS MISUNDERSTANDING ABOUT THE MEANING OF DISRUPTIVE INNOVATION, which produces NEGATIVE EFFECTS ON THE MARKET AND INFORMATION.
(today it is passed off as ordinary forms of innovation for Disruptive innovation).
The essential problem is that in this way
we continue to proceed with
the same mindset, the same paradigm
that has produced the problems we want to solve.
The fact is that ordinary innovation is a process of linear evolution, while Disruptive innovation is a leap compared to the ordinary process of innovation. With Disruptive innovation we move from improving product quality – with a real Business Revolution – to a radically new generation of products. In other words,
there is an epochal change in which
“nothing is more like before”
(it is a leap in the Progress curves like the Scientific Revolution or the Industrial Revolution).
The problem for the Market is that
that following the traditional strategies, obsolete,
the major Players are destined
to reach a point
where they will no longer
be able to adapt to the new reality of the Market.
Key Points of Disruptive Innovation
► Disruptive innovation is NOT an improvement of current products, but it is a leap in the evolution of products that entails a fresh start of the business.
A significant example is the leap carried out by the Progress with the advent of the automobile (and heavy vehicles) in a context in which one moved on foot or on horseback.
This is a new phase in which only First Movers will operate (Game changer – even in a small market niche).
The new Players are new Star Up, but also Big Players who will be able to transfer skills and expertise from one sector to another. For example, the new “cars” will be more easily produced by the players in the domestic appliance sector than by the current “Automotive” players, < see “Beyond the Automotive” “Manufacturing 4.0” >.
► in Disruptive innovation the value of technologies is marginal: consumer technologies – which cost a few dollars – are since years been able to support a noteworthy innovation in product functionality (not yet developed). < see “The role of technologies in innovation“ and “Disruptive innovation is not based on technologies“ >
The new form of innovation is based on the creation of new forms of value-useful for users thanks to the potential of these technologies. < see “Value-oriented innovation new Value proposition“ >
► Disruptive innovation is based on a radical change in the Business Model. The original principle of the market is recovered: the Offer develops on the basis of the Demand. < see “The lack of the figure of the entrepreneur” >
This is done by overcoming the traditional form of “market research” to identify the needs to be met: the User is integrated into the product design/production process. < see “Crowd-driven Innovation / Crowdsourcing” “The User Generated Product” >
► Disruptive innovation revolutionizes the way products are consumed: the methods of use are revolutionized, favoring the emergence of new practices (for example, linked to trend sharing, caring, Do It Yoursef).
And we have new social implications (Social Impact) thanks to which the modalities of management of local social communities (which border on governance, with methods that are similar to those of Subsidiarity) change. < see “The misunderstanding on the Social Impact“ >
► in Disruptive innovation there is a radical change in the whole context related to the product: not only the Business model changes, but changes the whole concept of the Company: ● methods of conception, production and distribution of the product, ● internal operating methods and ● interaction between companies (for example, from Value Chain we move to Value Web). < see “Smart Manufacturing, the misunderstanding on the term Industry 4.0“ >
● you can not expect disruptive innovation from big players <see The great Firms are not able to develop disruptive innovation within them >
● it is not a matter of “low cost”, but it increases the value of the products <see The misunderstanding on: “low-cost” is disruptive innovation>
● it is not based on technological innovation, but on the application of the “human factor” to Low-tech < see Disruptive innovation is not based on technologies>
● Exceeding current Marketing, with a Crowd-driven Innovation < see Crowd-driven Innovation / Crowdsourcing>
● the entire Ideation/Production/Distribution process is revolutionized < see “The misunderstanding on Industry 4.0: towards Manufacturing 4.0” >