Today we live in a very critical condition for the Market:
the established Business survives
only thanks to typical expedients
of the Market phase in decline
and not thanks
to the development of actual product quality
In this condition the Business is not able to tune in new Demand, and therefore the current Customers will most likely be subtracted from them by the new Startups that develop functional innovation for the new Market.
The seriousness of the problem lies in the fact that
none of the establishment
(the established business)
demonstrate (theoretically, or in practice)
that they have a line of
how they should do to get out of this crisis.
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The significant fact is that the need to change is highlighted by the emerging business forms – which develop a Disruptive innovation which quickly reach dominant positions in the Market (note that this happens despite the fact that they are hindered by the expedients of the establishment – in liason with public institutions).
In essence, what appears is that today
none of the establishment
changes effectively to adapt to the times.
The characteristics of change
In summary the situation is that
the Market (the whole society) is in a phase of radical change
The fact is that today we are experiencing one of the epochal changes in history, and the pre-existing “classes” are unable to follow the radical change: as happened in the French Revolution to the establishment (Aristocracy), or in the Industrial Revolution to Craftsmanship.
<see The Company Immune System: why the big Companies cannot develop real innovation>
That is, in order to stay on the Market today it is necessary to make a radical change (basically, to adapt to a new demand radically different from that of a few years ago).
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The change is so radical that there is a reversal of the principles, values and structures of the previous market. To the point that
what were success factors become today critical factors
(factors such as developing Technologies, Marketing of “narratives”, Monopoly, Cronysm, etc …). <see Table for assessing Disruptive innovation>
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More specifically:
► it is no longer a question of improving a current generation of products, but of inventing new ones. The improvement of “performance” is no longer sought. The focus passes from technologies to the human being: the new products develop a service for the Customer (“Job to be done”).
► it is literally a question of creating new market sectors, following a “revolutionary” rule: identifying non-consuming niches, and transforming them into market sectors.
The change is so radical that:
► in order to develop the new business it is necessary first of all to radically change oneself: mindsets and structures (so radically that established companies cannot do it internally, but must create spin-offs).
<see Why the big companies cannot innovate within them [1] >
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One of the market problems that delay change is the denial of the need for radical change (Disruptive Innovation). Today, the establishment (of the Market and Politics) develops a “resistance” to new forms of innovation. <see Disruptive innovation in practice [2]: the “resistance” to innovation>
This is a condition that, while allowing the Established Business to survive (for some time), puts it in a position to be attacked by Startups that manage to offer much more attractive products.
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These topics are developed in the Articles of the TrendInsignts site. And in particular in the Collection of Articles (see index below):
► Guidelines for Disrutpive Innovation; and
► Disruptive innovation in practice.
DISRUPTIVE INNOVATION IN PRACTICE (Collection of Articles)
1. WHAT ARE THE CRITERIA FOR EVALUATING DISRUPTIVE INNOVATION?
Chapters:
● The redefinition of the term Disruptive by its “inventor”
The essence of Disruptive Innovation it’s not disruption (disorder, destruction); but it is THE “USEFUL VALUE” THAT THE PRODUCT DEVELOPES FOR THE CUSTOMER
● The two opposite meanings of the term Disruptive
Today the term disruptive indicates negative effects of disorder, destruction. But Disruptive Innovation is a great benefit for Business and Customers
● The causes of the current disruption
The paradox of Disruption is that it is the Incumbents who created it, depriving the market of the qualities needed to satisfy the Demand
● The need to develop new Business Rules
In order to develop an innovation capable of satisfying the new Demand it is necessary to understand what the qualities required for this Demand are
● A hint to the qualities of Disruptive Innovation products
The differences between the qualities of the two forms of innovation are radical: traditional product qualities and deeper forms of gratification are recovered.
2. THE “RESISTANCE” TO INNOVATION
Chapters:
Today we read (increasingly often) that Disruptive Innovation is not what Business really needs. But the validity of Disruptive Innovation is verifiable (primarily by analyzing the facts). Chapters:
● The verifiability of the disruptive innovation validity
● The two fundamental questions about the validity of Disruptive innovation
● The absence of Startups of breakthrough success of Sustaining innovation
● The media essence of the success of Sustaining innovation
● The “resistance” to innovation
3. THE CHARADE OF THE DISRUPTIVE INNOVATION
Companies are prisoners of the same narrative with which they deal with customers.
The incumbents have created a cultural dimension of “abstractness” that allows Marketers a “persuasion through fiction” to purchase (which induces the Customer to purchase products that have little or no use for it).
And now the Incumbents themselves live in this “mental bubble” (of abstract ideas), for which they are convinced by the “experts” (Managers, Consultants, Professors, etc.) to follow ways of developing strategies that they are disconnected from actual reality (ie to purchase a “product” lacking in quality for them).
GUIDELINES FOR DISRUTPIVE INNOVATION (Collection of Articles)
A Guideline illustrating which are the Rules followed by the Disrutpive Inovation Business.
It contains a Table that illustrates the Keypoints of Disruptive innovation, so that we can easily evaluate the response of a Business to the Rules of the Disrutpive Innovation.
Articles:
1. Basic Q&A on Disruptive innovation
Aimed at a clarification of the negative and positive keypoints of Disrutpive Innovation: ● what are the causes of the current crisis, and ● what Disruptive innovation actually is in its specific aspects.
► Why we cannot get out of the current market crisis? / Why you cannot work on causes of problems? ► Some causes of the failure to change ► The change: some characteristic / Why the need for a disruptive innovation?
2. WHAT IS and WHAT IS NOT Disruptive innovation
Aimed at a clarification of what are the specific errors committed by the failing strategies. And what are key factors of the winning alternatives
► Considerations on models and roles of the new Business ► Overcoming the concept of Leader and follower ► Considerations on the form of innovation / The difference between the innovation models (sustaining/disruptive) ► The change of the business paradigm and mission / Purpose of business / Comparison between Disruptive and Sustaining Innovation: the case of “electric bikes”
3. Table for a assessments of Business innovation capacity
SUMMARY TABLE OF KEYPOINTS OF THE TWO DIFFERENT FORMS OF INNOVATION (Disruptive / Sustaining), with which it is possibile TO ASSESS WHICH FORMS OF INNOVATION ARE PRESENT IN EVERY BUSINESS.
