In the era of technology that continues to grow rapidly, there are also many new business developments that are easy, efficient, and technology-based. On the other hand, business competition is getting fiercer. If you don’t continue to innovate, there will be businesses that lose and slump. Therefore, continuous innovation is needed to maintain business continuity.
There are two types of innovation implemented by business owners. First, is sustainable innovation, which means perfecting pre-existing innovations. Second, is disruptive innovation, which is an innovation used to create new markets. Or even disrupt and damage existing markets.
Finally, the old technology and market become replaced and are no longer relevant.
Then, what exactly is disruptive innovation? Is it good for business continuity? Let’s look at the full explanation from Markshare below.
Definition of Disruptive Innovation
As previously explained, disruptive innovation is an innovation that is used to destroy existing markets and create new markets.
The concept is that this innovation develops a product that already existed before. The result is an unexpected new product.
In other words, products or services with this innovation are produced in ways that consumers do not expect or predict.
Requirements for Disruptive Innovation to Occur
Innovation can be categorized as disruptive if it fulfills the following conditions:
- These innovations are not developed linearly from pre-existing technologies.
- New innovations are created to take advantage of opportunities that arise when old innovations become too complex for customers. In short, it can meet customer needs for new innovative solutions that are cheaper and simpler.
- Disruptive innovations are not always more sophisticated than pre-existing innovations. Generally, disruptive innovation is often an innovation that is more functional and easier to use. It’s just that, with existing technological developments, it is possible that new innovations are also more sophisticated than previous innovations.
Is Disruptive Innovation Good for Business?
Whether disruptive innovation is good for business or not, of course, depends on the type of business and the innovations produced. Almost everything has its own positive and negative effects, and disruptive innovation is no exception.
With disruptive innovation, you can steal the market and win a business competition. However, an out-of-the-box mindset is needed so that products or services resulting from this disruptive innovation can be used more cheaply, easily, and quickly.
This innovation is also important to be implemented by various start-up companies or startups to grab the attention of consumers who have so far belonged to larger companies.