5 Steps to Disruptive Innovation

With handy tools like the new age technologies, every millennial is dreaming of disruptive innovation, killing a business category or atleast changing the rules of the game in an industry ( on the way to a unicorn valuation ! ) What is disruptive innovation? 5 steps below

1.    No tinkering and delta changes. Think of the industry cost structures and what could fundamentally alter the business model and cost structures. Biggest motivator for a business change is cost. Re-imagine the business model with a new cost structure thats radically different

2.    While the new model will not be attractive to all the current stakeholders ( because you are removing some of them in the process! ), for faster adoption, make sure your new model appeals to the end customer first and then as many others as possible

3.    Do not start with technology. Draw up the re-imagined business model and see how the technologies/tools will make that a reality

4.    Never undersell the new business model on the cheap!

5.    Be prepared for the long haul. Disruptive changes occur at the fringes first since there is a backlash by incumbents. Persevere!

Its not the Tech, Stupid!

There is no shortage of tech buzz words ( Machine Learning, Artificial Intelligence, Blockchain, Analytics, Chatbots, NLP....) that promise to end the world as we know it, change our lives for the better and so on.... But the reality is far more humbling. The reason? Choose the right problem where the appropriate tech is the right solution. Not the other way round : Have a solution and start looking for a problem!!!!

The long lead times between a technology riding the hype cycle and making life changing impact is precisely this. The lack of imagination in identifying the right use case for the right tech to make a business impact. This needs to be done keeping in mind that there may not be any solution today, current tools/instruments ( thats what technologies are) may not be the solutions, current technologies still are up the maturity cycle before they become useful/applicable.

Also to keep in mind are the aspects of current insecurities and mind blocks in accepting disruptive business models and the enabling technologies. Long lasting changes happen at fringes initially, take longer to become mainstream and come across many roadblocks on the way. Conviction, Perseverance, dollops of luck....drivers of change.