What Is Disruption?
Disruptive Innovation is a term used to describe a technology that has a dramatic impact on the way a business or industry operates. The Internet, for example, is a technological revolution that has dramatically altered the way businesses operate and has had a positive effect on all enterprises that have decided to adapt to it. It is primarily done by manner of changing the way a business is conducted in a particular field.
How Are Companies Around Us Doing It?
It starts when a company decides to change the way business is conducted in a particular field and this leads to a shift in practices that are considered “normal” in said industry. Once the process is taken apart and put back together in a way that suits the cost and convenience of the company. That change is the disruptive innovation done by them.
Where have you seen this happen?
Airbnb changed the game in the world by becoming the largest application in terms of finding a place to stay, even today they do not own any of its 5.6 million active listings yet they earn an estimate of 110 billion $ as of 2020. How?
They decided to bring hotel services to people without owning hotels themselves.
Talabat started as an application that was meant to be used as an online food ordering company. Today it owns UAE-based competitor Zomato and is the largest operating food delivery service in the Gulf region. What did they do?
They decided to deliver food without making it themselves.
The owner of Alibaba is Jack Ma. He is the richest person in China and the 17th richest in the world. His recipe for success was how he decided to sell products online in a manner similar to his American counterpart Jeff Bezos except he did not make any of those products. He empowered local exporters by listing their goods on his website and essentially made an e-commerce business with 0 products of his own.
Now, this is a company we are all familiar with, the real question is do they really own all the cars that operate on their own app? No. Uber did not have the cars they operate on and even today they function in most countries without ownership of their cars. They decided to launch a Taxi service without taxis and it worked.
Oh, the hours we have spent on Netflix…. Do you remember the initial days when Netflix did not make a single movie on its own? That was the disruption done by them, an easy-to-access movie store that made 0 movies of their own. It was only after the money came in that decided to become movie creators as well.
To parcel it up neatly, all these companies capitalized by identifying processes that were considered normal and people were habitual of, once they found the link in the chain that can be eliminated. They did.
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