Thereupon, the word Disruption (or disruptive) originated from the Latin verb disrumpere (tearing, breaking, smashing, or passive: bursting) – means interruption, disturbance, breakage, disorder or destruction.
The difference between a typical innovation, as it can occur in all industries, moreover a disruptive innovation lies in the way it changes. As a result, innovation is a renewal that does not fundamentally change the market. But merely develops it further, disruptive innovation is a complete restructuring or destruction of the existing model.
For example, the invention of the compact disc was merely a further development of the classical gramophone. After that, press plants responsible for manufacturing the gramophone adapted their processes to the new compact disc. As a result, dealers began to include the compact disk in their product ranges with the same high price tag.
However, the emergence of digital music distributors such as firstly Napster and Emule, but then, the iTunes Music Store further Spotify. On the other hand, it meant the gradual dismantling of the local music business. All of a sudden, they initiate a disruptive process. At this point, they allowed consumers to purchase their favourite songs online and allowing artists to succeed without a record label.
The new offering of iTunes was an attack against the whole music industry, moreover, the countless record shops. After all, digital music distributors punished the entire antiquated music industry for their monopolistic, hence, selfish behaviour. For years the consumer got blackmailed into buying full albums instead of allowing them to buy only their favourite songs.
Henceforth, another big subject is financial technology, meanwhile known as “fintech”. It describes a business that aims at providing financial services by making use of modern technologies, moreover, cheap and user-friendly software applications.
All these changes also lead to so-called unicorn startups, which translates into a private company with a valuation of over US-Dollar one billion.
Access a full list of unicorns here.
Therefore, disruptive technologies (often referred to as “disruptive innovations”) are innovations that replace the success story of existing technology, product or service or that, above all, completely displace it from the market.
Furthermore, why do things have to stay the way they are. After all, why not rethink business models to start looking for synergies. Even more, why does a cost centre have to be a cost centre?
Consequently, you can question things and have your own non-traditional business opinion. Hence, don’t be boring – instead, take the momentum and add disruptive action to your life.
Read our blog on this subject. Any comments are welcome.
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