Disruptive innovation: transforming industries and gaining competitive advantage

It’s normal for things to change over time. Right now, the lifespan of products and services is becoming shorter and shorter, as new models are being created very quickly to replace old ones easely.

Facing all these abrupt and rapid changes, you have to know how to act: if you don't keep up to date, your business is likely to become a thing of the past.

Of course, nobody wants this, but it’s a reality that we must face, especially when disruptive innovation is booming.

Don't know what it's all about? It’s essential that you are informed about this topic and the way it has created changes in the business sector.

For this reason, we will shed some light on what this is and what competitive advantages it has created.

What is disruptive innovation?

Disruptive innovation is a work methodology that seeks to make radical changes to an existing business idea.

That is why in many parts of the world it is also called radical innovation. It starts from a type of product or service already created, to add improvements that make it more efficient for today's users.

Just as the way we live has changed due to technology, so has the way we consume.

That's why even if you have a business that has been around for decades, if new users don't find it interesting, they will stop coming back to you.

This term has been talked about since 1990, when Professor Clayton Christensen of Harvard Business School coined it in one of his papers.

Since then, it has become clear how new brands have revolutionized the way in which people buy a product or enjoy a service.

What is the kind of transformation that has generated disruptive innovation?

Although it’s something we are not aware of on a day-to-day basis, many things have changed thanks to disruptive innovation and have been on the rise since the growth of technology.

Just think of the way people used to communicate using cell phones that didn't even have internet access.

Now they don't even use the phone signal to talk, users prefer to communicate through messaging apps that they have on their phones and that work through the Internet.

There are many other cases of changes that have been generated at the moment of consuming something, but this type of innovation is mainly focused on revolutionary business ideas.

For example, when people started to get tired of hailing cabs on the streets, applications like Uber were created.

This completely changed the way cabs are used: now they are ordered through an app, drivers have better job opportunities without so many requirements, as a customer you can access better prices, etc.

Undoubtedly, these types of radical changes have generated incredible transformations that must be recognized.

From the mere fact of changing the way in which a service is offered, to the way of interacting with it and the economic variations.

What are the competitive advantages of disruptive innovation?

As something that has completely revolutionized the business sector, using this type of innovation can offer great competitive advantages.

After all, that's how this industry works: the company with the best products and prices will be the one that generates the most sales.

You have to know how to compete against this, and disruptive innovation is often the answer. If you want to be aware of how these benefits are presented, we will tell you about them below:

1. Better growth opportunities

The main objective of disruptive innovation is to take advantage of what large companies do not do, to do it yourself and offer it as a new style of service.

Thanks to this, the opportunities for growth within the labor sector are very remarkable.

By coming up with a revolutionary idea to the market, you will be able to capture the attention of people who need that kind of change and thus have many potential customers from the beginning.

And if you want to stay in the market, all you have to do as a company is to analyze where you have failures in order to solve it yourself with something technological.

2. A market entry with lower prices

By working with technological programs that are more automated, the percentage of initial investment is significantly reduced.

This is why many of the businesses that are born from disruptive innovation enter the market with much lower prices than previous companies that still use older technologies.

This is a key point regarding disruptive innovation, since users are always looking for cheaper options.

3. You will be able to create new business models

This is a clear competitive advantage of this type of innovation: you have to create new business models.

While it is true that to achieve this you need to conduct research and analysis of the current market, it’s something that will be completely worthwhile.

When a company creates new solutions or products, it captures the attention of users, as they are interested in fresh and new things.

You can always start a successful business model if you know how to meet your customers' expectations well.

4. More attention is paid to internal processes

A disruptive innovation is not created overnight, behind it there is an arduous process of analysis and market research that takes time.

This allows the project designers to pay more attention to the internal processes and thus fine-tune all the details of the business idea.

It’s important to carefully analyze the efficiency of your action plan to verify that it’s a worthwhile and disruptive process.

In today's world, it’s better to enter the business market with a business idea that is functional from the beginning.

So a good business management team is required to be able to implement this type of change strategy.

5. Allows direct attack on the customer's needs

For this type of innovation, the most important thing is not sales, but customers.

By thinking about what users need and how best to meet their needs, you will be able to hit the nail on the head with the business idea you are going to offer.

This allows you to be sure of one thing: you will reach potential customers who will become regular customers.

As long as you think primarily about what people need, you can succeed in the job market, especially if you do it through disruptive innovation.

Reasons why you should work with disruptive innovation

We know that making changes in a business through technology can take time and many people are interested in just starting to sell and that's it.

But the truth is that the more you dedicate yourself to evaluating situations, the better you will be able to make the changes that are required within your company.

It’s not for nothing that many companies have achieved success after implementing radical changes in the way they sell and offer services.

It’s all a matter of focusing on what you want to achieve and outlining an efficient, realistic and scalable action plan, because you always have to think about moving forward.

If you’re still not completely convinced by the use of this type of innovation, let us give you a list of reasons why you should do it:

• The quality of all your products and services will increase.

• You will be able to bring innovation, not only to your products, but also to your entire company.

• You will notice an increase in efficient results.

• You will generate a positive change in organizational dynamics thanks to technology.

• Your team will better handle the correction of business errors.

Which brands have succeeded with disruptive innovation?

Within disruptive innovation, the brands that have been most successful are those that knew how to take the weaknesses of other companies and offer solutions through a new service.

It is so that the previous company becomes obsolete in the face of the radical change made by the new one.

At the end of the day, that's what competition in the job market is all about: analyzing and executing changes that are radical and current.

In order for you to better understand the implications of this type of innovation, we will give you some examples of companies that have known how to do it perfectly:

1. Amazon

With the advent of technology and the Internet, our ways of doing many things have changed, and among them is shopping.

That’s why Amazon arrived at the right time to meet the new needs of consumers, who wanted a more convenient way to shop.

That’s how the company that today is the largest online sales company was created, where you can buy anything you can imagine and with the option to review different models and prices to find the best one.

Likewise, it knew how to create a scalable business plan, since today it’s still strong in terms of its use thanks to the updates and changes it has gone through.

2. Netflix

There’s no doubt that one company that knew how to apply disruptive innovation was Netflix.

The streaming company completely ended movie rentals or the use of devices like DVDs.

It took technological opportunities and internet connection to create a platform on which you yourself can choose what to watch in a catalog full of options.

All this without the need to pay for each time you watch a movie, you only have to pay a monthly or annual subscription and enjoy as many movies as you want during this time.

3. Uber

As we mentioned before, Uber is another excellent example of how disruptive innovation works.

Now that almost everyone has a mobile device, it created an application from which requesting a cab and paying for it becomes much more convenient.

In addition, the prices are much more accessible to users, which attracts the attention of those who use this means of transportation on a daily basis.

The interesting thing about a company like Uber is that it not only made things easier for customers, but also for drivers, who now have more job opportunities.

4. Airbnb

Finally, it must be recognized that Airbnb displaced in many countries the expensive hotel accommodation.

Now you can choose from its website where to stay, in spaces that are much more comfortable and accessible to you.

Another point in favor of Airbnb is that it gives people the opportunity to rent their homes or rooms to generate profits.

Therefore, this is a company that also benefited both users and landlords.

To conclude, we must recognize that innovation is something very necessary today, since companies must satisfy the needs of users well and they increasingly have more and more.

If you do not want another company to make a disruptive innovation that leaves your company obsolete, you need to upgrade.

There is nothing better than taking into your own hands the changes that your company needs to stay current and functional.

Did you find this information useful? Then do not hesitate to share it with more people and tell us what you found most striking about disruptive innovation.