The great Firms are not able to develop disruptive innovation within them

The consolidated companies of the Market
LITERALLY CAN’T DEVELOP
DISRUPTIVE INNOVATION WITHIN THEM.

(they can, however, as explained below, develop disruption outside of them)

These companies, precisely because they have reached a consolidated position on the market,

ARE THE OBJECT OF DISRUPTION,
and therefore
CAN NOT BE THE SUBJECT.

It must be taken into account that disruption is not the goal of a strategy, but is the side effect of a strategy aimed at developing new Values for the Users.

That is, disruption is a “revolutionary” action that in some way devastates current corporate strategies and organizations.

How can a structure of an incunbent company develop strategies when these are disruptive for it?

< see “The basic misunderstanding on Disruptive innovation” >

It is a non-sense
to expect self-disruption
from the big players,

due to:

● lack of “intuition”, which was the fundamental quality of the Company led by the Entrepreneur (today the companies are led by managers).

Today the great players think in terms of financial capitalism, whose main focus is on how to increase profits, and not – as the entrepreneur did – on how to increase the value for the consumer.

The fact is that the current managers are spoiled by decades of marketing strategies that lead consumers “automatically” to an impulse purchase (not reasoned, not tied to real needs). And so they do not have the ability to understand what are the forms of value required by Demand.

< see “The main causes of the misunderstandings that undermine the market” >

● lack of culture of (real) innovation – the Management of major Players (including Consultants) today is not able to understand what is real (disruptive) innovation, because they are trained in schools to a unique vision of reality (that of current marketing, in fact).

So today, in a market that is only able to provide products that are mostly emotional that can no longer be purchased by consumers that can no longer afford to spend for what is not strictly necessary

only those who are able
to act according to an entrepreneurial mindset
can produce a solution
to a real problem of people.

That is,

disruptive innovation can only come
with a fresh start, from new comers.

Obviously, it is not certain that all the great players of today’s market should fail in the future.

Substantially the current players have the possibility to innovate, for example, by transferring a part of their production to another sector; or creating spin-offs.

Trying to see the positive aspect of the question, from the point of view of the social system this attitude can perhaps be considered a good, since it makes the change less dramatic for the society (more gradual).

But, from the point of view of the players themselves, the more time passes, the less they have the possibility to change.

My articles on new Bottom-up Marketing (Crowd-driven market)

In a market characterized by a new Demand is no longer possible to understand with traditional marketing tools, IT IS NECESSARY TO RADICALLY INNOVATE THE MARKETING ITSELF.

. We witness a Crowd-ization of the Market: Customers must be integrated into  Design (taylor-made products) and into Production processes.

.

● Toward a New Marketing (1): beyond the Analytic Marketing, toward a pro-sumer Market -  THE CURRENT CONCEPT OF MARKET ANALYSIS (as observation / or Listening to Customers) IS OBSOLETE, Big Data strategies must be replaced by Marketing of Pro-sumers.

● New modality of Consumerism (Key of Changes #2) - To understand the new Demand it is first of all necessary to understand which are the main trends that affect the market in the near future: ● a radical change in the forms of consumption (customer needs and expectations). ● a “revolution” of the product development (and production / distribution) methods.

● The wrong interpretation of the Customer Experience - With Customer Experience today we use obsolete principles. It is necessary to change the paradigm of Marketing, which from a "subtle" persuasion system to the purchase of a product, MUST GO BACK TO BEING A PROCESS THAT STARTS FROM THE ANALYSIS OF THE REAL NEEDS OF PEOPLE.

● New mode of Innovation (Key of Changes #3) - In an era of profound changes, the concept of innovation itself must change. Today a substantial innovation is needed, which is able to develop a really-useful value for the Customer.

● Towards a new (real) sustainability: the mistake of focusing on the low price - The inability to understand the essence of change leads us to think that the response to the reduced spending of the Customers must be a reduced price of the product. But the plus point of the product is not the low-price (which is also necessary), but in its sustainability.

● The problems of the current Market strategies: toward a crowd participated Marketing - CURRENT MARKETING IS NOT ABLE TO INTERPRET THE NEW NEEDS OF CUSTOMERS. Thanks to Information Technologies today it is possible to change the role of Consumer by inserting them in the product development process.