If you’re an entrepreneur, you’ve probably already come across the theory of disruptive thinking or innovation. Many entrepreneurs swear by it as their guiding star. However, not many of them truly understand what it is about. They therefore aren’t able to truly harness its power.
What it’s all about
Disruptive thinking is often misunderstood by entrepreneurs. There have been many different interpretations of the concept that have caused people to move away from the original purpose of the theory.
The idea behind disruption is that a smaller company that has fewer resources can challenge a much larger establishment successfully. This is possible because large or more established organizations tend to focus on improving their current products to meet the demand of their most profitable customers and therefore often ignore some segments of the market.
For an entrepreneur to be disruptive, they would need to focus on the segment of the market that is being overlooked. They can target this section of the market by delivering a functionality or product that is tailored to suit their needs e.g. products at a lower price.
In many cases, the incumbents in the market do not react vigorously since they are chasing higher profits with higher demand segments of the market. Eventually, entrants in the market are able to move up and deliver performance to the mainstream customers of the incumbents and therefore become even greater competition to them. By this time, disruption has occurred.
If you’re looking to cause a disruption in any market segment, consider the following tips.
- Take a closer look at the industry
Some industries face very few disruptions while others face so many disruptions that companies are always on the lookout for new innovations and how to adapt to changes in the market. It is important to ensure that our innovation:
- Offers the opportunity to reshape current business models and therefore present a new way to make money
- Offers new opportunities to customers that they didn’t have with previous products
- Will provide you with the opportunity to move upmarket when the time comes
- Begin assembling your Innovation such as building an IT Product with a reliable software development company.
This is a key step in the process. It involves a great IT team that helps to gathering your ideas, developing them and planning how you can profit from them.
- Get the engine running
With your product ready, it is time to go to market. Be sure to test the product in the market to see how customers receive it. At this point, you can make changes to your product based on feedback from the market.