Disruptive Innovation, Digital Innovation, Multimatics
Dr. Agus Setiawan

PhD Holder and result-oriented Director with 25 years experience with involvement in all levels of Business Strategy, Sales and Marketing, Managing Project and Product Development. Aside of managing a company, he is also the best corporate trainer and public speaker in seminar and conference.

Is Disruptive Innovation the Right Winning Strategy?

In highly dynamic and competitive markets, traditional incremental improvements may not be enough to secure a competitive advantage. To strive in today’s era, businesses must recognize the importance of disruptive innovation. Disruptive innovation is now being seen more as a necessity than an option due to the ever-changing needs of customers. Disruption innovation is surely the right winning strategy. How?

Also check out our IT and Digital Innovation Strategy training and certification programs to support your digital transformation journey. We are ready to deliver end-to-end solutions that could assist you in achieving a successful digital transformation.

What does it mean by disruptive innovation?

Disruptive innovation is a process by which entrepreneurs enter a low-end or new market and develop business models that differ from those that already exist there. Other words, it creates new value by shaking up an existing market.

Disruptive innovation doesn’t optimize but provides new solutions. Disruptive innovations don't try to offer better products. Instead, they alter and redefine that trajectory by offering products that are inferior to those that are already on the market, which are simpler, more practical, and less expensive.

Disruptive innovations usually start in low-end or emerging markets. Disruptive innovations are made possible because they get started in two types of markets that incumbents overlook. As incumbents strive to deliver ever-improving products and services to their most lucrative and demanding consumers while paying less attention to less demanding customers, low-end markets exist. This makes way for a disruptor who will initially focus on offering those low-end markets a "good enough" product.

Is Disruptive Innovation the Right Winning Strategy?

Absolutely. In a rapidly changing environment, disruptive innovations can enable a company to leapfrog competitors and establish a strong competitive advantage. By offering something radically different, a company can attract new customers and capture market share, leaving traditional competitors struggling to catch up. Below are some of the reasons why disruptive innovation is the right winning strategy.

  1. Market Leadership: If a company can successfully introduce a disruptive innovation that addresses emerging market needs or creates new demand, it can quickly become a market leader and gain a competitive advantage.

  2. First-Mover Advantage: Early adopters of disruptive innovations often benefit from a first-mover advantage, securing customer loyalty and establishing barriers to entry for competitors.

  3. Adaptability: Companies that embrace disruptive innovation are generally more adaptable and better equipped to navigate changes in the dynamic environment.

  4. Growth Opportunities: Disruptive innovations can unlock new growth opportunities and revenue streams that were previously untapped.

How to Prepare for Disruption Innovation then?

To disrupt a market, you must be willing to cannibalize your existing business, be agile, and embrace taking risks.

  1. Listen to your customers and observe the industry trends

    Leaders who are surrounded by people who are reluctant to tell them the truth frequently make poor choices, waste resources, and fail to expand their organizations. This issue could be solved by hiring people who are not afraid of speaking up when they see something wrong that needs to be corrected.

  2. Focus on business model innovation

    Since they either could not afford them or the products were too complex for use, these sectors typically do not generate profits for established businesses. This business model aims to offer simple, affordable solutions—a model that incumbents haven't adopted because of the disruptor's initial low profit margins. Thus, focusing on business model innovation can alter how your business provides new value to customers.

  3. Don't count on breaking through right away

    Disruption takes time and opportunities are often discovered through incremental improvements. Even while patience is crucial, you should still be aware of what is possible and what you ultimately want to accomplish. Making a detailed roadmap to direct you in the proper direction is one approach to make sure you're moving in the right route.

In conclusion, disruptive innovation is of utmost importance in the digital dynamic era. Companies that embrace it can leverage technology, meet customer demands, gain a competitive edge, and adapt to changing market conditions. By fostering a culture of innovation and staying ahead of the curve, organizations can secure their future success in the digital age.

Join our IT and Digital Innovation Strategy training and certification programs to achieve a successful digital transformation!

Christensen, C. M. (2023). What is disruptive innovation? Harvard Business Review.
Disruptive innovation. (n.d.). The Interaction Design Foundation.
Kylliäinen, J. (2023). Disruptive Innovation – What is It and How Does It Work? Viima Solutions Oy.
Twin, A. (2023). Disruptive Innovation: Meaning and Examples. Investopedia.

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