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What is Disruptive Innovation? Disruptive Innovation is a framework that describes how new products or business models can transform industries by offering simpler, more affordable, or more accessible alternatives to existing offerings. Disruptive Innovation is not just about technological breakthroughs.
It is clear that Europe lags the USA in producing high growth innovative large companies. However, there are many small companies that are doing surprisingly well and some large ones which are more innovative than you might think. Germany BASF: A chemical company that continuously innovates in sustainable solutions and materials.
Disruption is all around us; it never seems to go away; it simply appears in a different and often entirely new form. The result is the same; it disrupts what we know and often in how we suddenly need to set about doing it differently. Much of the innovative disruptions seem so obvious; you wonder why we were not doing these before.
In today’s world, disruption isn’t the exception—it’s the rule. With the rise of AI, automation, and digital technologies , change is accelerating faster than ever. Companies like OpenAI, Tesla, and Amazon exemplify how leveraging disruptive innovations can redefine industries. Continue reading on burrus.com »
Everybody has something they'd like to change, whether it is a problem in their organization, their industry, their community or society at large. But how can you get your ideas for change to take hold beyond a small circle of likeminded people? Through rich and vivid examples, he will explain how you make ideas spread.
The Role of Empathy in Leadership: A New Standard for Industry Disruption Many leaders are focused on technological innovation as the primary driver of success. However, as Andrew Antar — CEO and founder of Tune.fm — emphasized on a recent episode of The Bliss Business Podcast , empathy may be the key to true industry disruption.
Do you know what disruptive innovation is? No, I am not talking about every start-up trying to disrupt their industry. I am talking about the original theory of disruptive innovation, as outlined by Professor Clayton Christensen in his groundbreaking Harvard Business Review article in 1995.
The 70-20-10 Innovation Rule is a strategic framework that guides organizations in allocating time, budget, and resources across three categories of innovation: core, adjacent, and disruptive. This structured approach helps companies avoid innovation imbalance. Categorizing them into core, adjacent, and disruptive efforts.
As Robert Gordon explains in "The Rise and Fall of American Growth", the turn of the 20th century was a time of great change. New innovations like electricity, indoor plumbing and the automobile were changing the way people lived, worked and shopped. The post Experian Was Being Disrupted by Fintech Startups.
The past three years have forever changed the retail landscape. Companies of all sizes were forced to welcome change with open arms and surrender to total flexibility in order to be agile in the ever-evolving economic environment.
A well-designed scenario planning process ensures that companies: Identify key uncertainties and their potential impacts. Develop proactive strategies to manage change. Improve resilience against disruptions and crises. Key benefits include: Enhances strategic flexibility Allows companies to pivot as conditions change.
Every company says that innovation is important, and that they value the ideas of their people. In fact, creativity is becoming a core skill which companies know they need in the future. In fact, according to some estimates by Doblin , 96% of all new innovations which established companies attempt fail to make a return on investment.
White Space Innovation is a strategic framework used to identify and pursue growth opportunities beyond a companys current product lines, markets, or business models. Companies that embrace White Space Innovation aim to break out of stagnation, stay ahead of disruption, and create long-term competitive advantage. Culture (e.g.,
New technologies emerge rapidly, disrupting industries and rendering existing systems obsolete. Whether a company is developing emerging technologies, managing existing platforms, or phasing out legacy systems, this model serves as a vital roadmap for navigating the complexities of technological evolution.
Contingency Planning: A Practical Guide for Strategy Projects Contingency planning is the process of proactively preparing for potential risks, disruptions, or crises that could impact an organizations operations, strategy, or financial stability. Enable rapid adaptation to changing conditions.
New perspectives needed In fact, the more your environment is changing, the more competitors you have, the more intense the competition within your industry is, the more you need new perspectives. The more change you want to create, the more you need the creative hat, the wonder and discovery inherent in child-like thinking.
How is it possible that so many companies fail to react while they are being disrupted ? This results in people and companies refusing to plan for things which could impact them negatively, such as another companydisrupting them, even after they have been warned or the event has even begun to happen.
In today’s episode of the Idea to Value Podcast , we speak with Andy Binns, Co-Founder of Change Logic and author of Corporate Explorer: How corporations can beat startups at the innovation game. Andy has worked as a strategic advisor to Leaders for decades, with experience at McKinsey, IBM and now Change Logic.
The issue we must tackle today, is how we go about adapting to the changing world? One that will be able to take all the advantages of the changes all businesses are undergoing, how societies will be adjusting and responding. We are in a period of (great) change.
For me, one epiphany that happened this week was when I was thinking about how valuable truly disruptive innovation is, and why it is done so rarely. Then, there's the added question of why almost all disruptive innovation is typically undertaken by an industry upstart or outsider, rather than a company currently in the field.
It helps companies plan for the future instead of reacting to disruption when it’s too late. Providing insight into when to explore adjacent markets or disruptive alternatives. Changes in customer needs or regulations. Helping teams avoid over-investing in aging technologies or saturated markets.
Without this structured analysis, companies risk underestimating threats, overpricing products, or misallocating resources. Threat of New Entrants: Evaluating Market Barriers New competitors can disrupt an industry by introducing innovation, price competition, or alternative business models. high investment in manufacturing).
Why a Strategy Uncertainty Map is Important Every business faces uncertainty in areas like market trends, competitive shifts, technological advancements, regulatory changes, and economic fluctuations. These may include: Market Uncertainty Changes in consumer demand, pricing pressures, and competitive shifts.
Adaptation to increasing complexity Traditional linear business models struggle to navigate today’s rapidly changing environment. Fundamentally, this evolutionary approach represents a necessary adaptation to a business environment that increasingly resembles natural ecosystems in its complexity, interconnectedness, and pace of change.
Aren’t breakthrough innovation and disruptive innovation the same thing? After all, the car, the telephone, the smartphone, the electric car, the solar panel, weren’t these all breakthroughs that were also disruptive? Breakthrough innovation is an innovation from inside a company that pushes something to the next level.
Applying the three horizon framework to innovation and change. To explain the impacts of innovation and the change it creates, we’ll use an accepted framework ( the Three Horizons ) to consider the impact innovation has on change capabilities and business models. There’s little change required for external constituents.
Companies that achieve it dont just stay ahead of the competition; they set the direction for the future. This article explores the core concept of breakthrough innovation, how it stands apart from radical and disruptive innovation , real-world examples of industry-changing advancements, and proven strategies companies can use to achieve it.
The word ‘corporate innovation’ is becoming an increasingly popular buzzword, but for the most forward-thinking companies, it represents the future of the business and a significant spend on research and development. Accelerator programs benefit corporations by providing them access to innovative and disruptive startups.
Innovation drives progress, but disruption rewrites the rules of the game. Companies like Netflix, Tesla, and Airbnb didnt just improve existing modelsthey shattered industry norms. At the heart of such game-changing success lies a disciplined approach to idea management.
Unlike a basic Competitive Analysis, which focuses primarily on direct competitors, Competitive Landscape Analysis takes a broader view , considering market trends, consumer behaviors, regulatory changes, and technological advancements that may impact long-term success.
It is the driving force behind the competitive edge that allows companies to stand out and meet the ever-changing demands of their customers. Incorporating innovative practices is essential for adapting to market changes and ensuring long-term success. Balancing creativity with practical implementation and scalability.
How confident are you that your company will not be disrupted by a smaller competitor? Well, it is common for companies to think that disruption won’t affect them, because they feel that the quality of their current products or services are exactly what the customers want.
They can quickly respond to changes in technology, market conditions, or societal needs, making them more resilient and better equipped to sustain long-term innovation. This resilience is increasingly important in a rapidly changing world.
McKinsey Seven Degrees of Freedom for Growth: A Practical Guide for Strategy Projects The Seven Degrees of Freedom for Growth is a strategic framework developed by McKinsey & Company to help organizations identify and prioritize growth opportunities. Creating New Products or Services Innovating to meet changing customer needs.
Agile Innovation is a dynamic approach to project execution that breaks initiatives into small, manageable tasks, enabling organizations to rapidly adapt to market changes. Companies that fail to adapt risk becoming obsolete in an environment where customer preferences, market trends, and technological advancements shift rapidly.
Disruption is all around us; it never seems to go away; it simply appears in a different and often entirely new form. The result is the same; it disrupts what we know and often in how we suddenly need to set about doing it differently. Much of the innovative disruptions seem so obvious; you wonder why we were not doing these before.
Why a SWOT Analysis is Important A SWOT Analysis provides a holistic view of a companys strategic position by examining both internal and external factors. Identifies competitive advantages Highlights what the company does best. Aligns Strategy with Market Trends Ensures that internal capabilities align with external changes.
This is similar to how companies often don’t see challenges from other competitors, upstarts and new disruptive innovations in the market. Company management often want to focus on the performance within the company itself, and so often lose track of what is going on elsewhere. Simply put, they develop blind spots.
A well-executed Competitive Analysis goes beyond simply monitoring competitors; it involves deep research, data-driven comparisons, and actionable insights that empower companies to maintain a competitive edge. Anticipate market shifts Stay ahead of industry changes and competitor moves.
Identifying and managing these factors ensures that companies allocate resources efficiently, mitigate risks, and maintain a competitive advantage. Adapt to market changes while maintaining core competitive strengths. Strengthens competitive positioning Ensures the company excels in key areas that differentiate it from competitors.
The Power of Disruptive Innovation Understanding Disruptive Innovation Disruptive innovation, a term you might have encountered frequently in today’s business lexicon, refers to a process where a product or service starts at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors.
The Evolution of Product Development Product development has transformed significantly over the years, adapting to changes in consumer behavior, market demands, and technological advancements. Traditional vs. This method, while structured and predictable, often leads to challenges in adapting to changes and longer time to market.
Why Kotler’s Pricing Strategy is Important Many companies struggle with overpricing, underpricing, or misaligning pricing with customer expectations. Providing flexibility in response to market changes. Helping companies differentiate themselves from competitors. Works best for startups and disruptive products.
The critical interplay among innovation, business models and change. One such collaboration was around the interplay of innovation with business models and change. Innovators often act as if they can create innovations that affect the customer and the market, but the innovator is somehow immune from the impacts and potential changes.
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