3 Oct 2022| O-Founders
What is Industry Disruption? The Truth Revealed!
Industry disruption is a hot topic nowadays – it’s not just a temporary trend; it’s the new normal. Whereas in the past, disruption was rare; it is now a reality that companies face regularly.
The primary cause of industry disruption is the rapid progress of technology and globalization that enables the latest business models to be introduced at an ever-increasing rate and with rapidly decreasing costs.
Disruption may sound like it’s something one hears as a buzzword, but it is one of the most influential movements businesses are facing today.
Contrary to common belief, disruption really isn’t about shaking up an old industry, but it is about developing new ones. It might seem like an overstatement but think about it for a minute.
Uber’s success wasn’t based on changing how taxi companies did business. Uber is successful because it created an entirely new approach to transportation.
It is driving businesses to look past the world as they know it, observe how things are changing from the outside, improve and remodel theories, models, and systems on the inside.
Disruption happens when traditional values that drive an existing industry are significantly changed. Typically, a new player enters a current market with new technology or a business model (or a combination of these two), providing a new kind of purpose that differs from all the traditional offerings.
Large organizations with extensive infrastructure are unwilling or are slow to disrupt their traditional way of doing business. The technologies they use, in most cases, have been there for decades – “legacy technology”- but it’s not the legacy technology that’s the real problem. It’s the organization’s “legacy thinking” that gets in the way of positive and productive disruption.
One of the primary reasons why disruption is challenging for large organizations is because these companies depend on investors and customers for resources. This means that the better-performing companies have developed systems for killing ideas their most profitable customers aren’t willing to pay extra for.
Creating disruption involves significant risks, and leaders are not willing to take that risk or do plan for failure. In other words, they aren’t ready to consider their efforts at commercializing disruptive technology as a learning opportunity. They just want to maintain their share prices and focus on the most profitable customer segments.
Most business leaders supposedly underestimate the sources of future competition. Instead of considering new market entrants as a threat, they believe their most significant competition comes from existing players in the market.
Usually, a large organization rate changes in customer needs, known competitors, and government regulations as their biggest threat in terms of their potential to upset their core products and services.
Though none of these points are incorrect and surely shouldn’t be overlooked, the greatest threat of them all is to rely heavily on past success and underestimate the abilities of new market entrants.
One of the best ways to understand industry disruption is to take a look at real-life examples. Uber, Salesforce, Netflix to Airbnb are disruptive technologies and business models that have transformed industries during the past decades.
Clearly, the future belongs to disruptors and creating the industry disruption is not easy, a billion-dollar business idea doesn’t happen in the blink of an eye. You need the right skills to be able to actually see beyond the industry traditions and the right timing to get people to genuinely care about your idea. Having the right tools and the proper guidance takes you to that one step closer to your dream business. ONPASSIVE platform provides you all the essential tools and guidance that will help you create your own industry disruption.
As the latest entrant in the market, you just don’t need a disruptive idea, but you need to be willing to embrace risks for converting your idea into reality. Not to worry, ONPASSIVE is here to take up those risks for you and guide you to a better business future by preparing you to compete with the most prominent stalwarts of your industry.
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Tags: Technology Artificial Intelligence