Watch it happen or be part of it Disruptive Innovation
Disruptive innovation is part of digital transformation. However, disruption is not the same as digital transformation.
First, a quick recap of the idea: “Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. Specifically, as incumbents focus on improving their products and services for their most demanding (and usually most profitable) customers, they exceed the needs of some segments and ignore the needs of others.
Entrants that prove disruptive begin by successfully targeting those overlooked segments, gaining a foothold by delivering more-suitable functionality—frequently at a lower price.
Incumbents, chasing higher profitability in more-demanding segments, tend not to respond vigorously. Entrants then move upmarket, delivering the performance that incumbents’ mainstream customers require, while preserving the advantages that drove their early success. When mainstream customers start adopting the entrants’ offerings in volume, disruption has occurred.
Innovation to the extend that the value proposition is changed fundamentally, and evokes a dramatic change of the business model have the potential to become a disruptive innovation. Disruptive innovation is most of the times the outcome of a fundamental idea-train, rather than a goal in itself. Thinking out of the box, applying serious gaming, engaging a great variety of stakeholders all contribute to a fundamental re-thinking of the future.
Digital Rocks is more than happy to facilitate your journey towards disruptive innovation.