Discover the concept of disruptive innovation and learn how it has impacted consumption – WAU
Understand how disruptive innovation has revolutionized markets and caused major repercussions on consumer behavior.
At a time when a very popular brand of photo cameras opted for digital transformation instead of continuing with analog photography, the whole world of photography has changed. This is disruptive technology.
When a company decided to replace the cell phone keypad with a digital screen, the world of mobile telephony was revolutionized. When another company created a platform to watch TV series and movies over the Internet, leisure was never the same.
The same happened in the area of telecommunications, when a platform for sending messages over the Internet was created. Such actions made people aware that the world is undergoing drastic and constant changes. Technological advances are the order of the day, especially in the digital field.
What is new today may be obsolete in a few weeks. In these circumstances, it is important to have the audacity to leave evolutionary schemes and adopt disruptive innovations.
In this article you will see:
What is disruptive innovation?
It is the transformation of a service or product into something new. When thinking about disruptive innovation, we are referring to the technologies or models that cause drastic changes. These technologies lead to a radical decrease in services or products that are already positioned to the general public.
The term was coined by Clayton Chistensen, a professor at Harvard University, in the 1990s.
In other words, disruptive technologies are those that result in profound changes or that bring about a total transformation in an industrial or business sector. They are feasible, open the way to new practices quickly and easily and seek efficiency and accessibility.
The process affects the consumer’s relationship with the business or company, as customers seek solutions to their needs quickly and easily and companies provide results through new technologies.
For companies, however, these transformations create the need to compete under parameters of creative destruction. This means that every innovation brings about the destruction or replacement of the old way.
What causes the continual redefinition of markets that play with new rules or regulations, since companies and customers are constantly looking for “the new”.
What characterizes a disruptive product or service?
Disruptive innovations are initially much more affordable than established products or services. This is because they target a public with less purchasing power that is not taken into account by companies already positioned.
This means, in addition to a lower initial investment, the possibility of expanding the market to limits never seen before, thanks to the use of new technologies. They promote the creation of markets allowing the generation of new ideas capable of mapping new needs to consumers.
Although not a rule, disruptive services are closely related to the digital world. These are much more adaptable services, not only at the company level, but also for consumers.
With simple browsing on the internet using a cell phone, people can now rent a room, a car, order food, make payments and have access to television programs or movies. In other words, we have autonomous users.
As a result of this greater consumer autonomy, it is natural for new opportunities for innovation to emerge; therefore, disruptive technologies generally result in breaking paradigms aimed at novelties.
It is necessary to take into account that, thanks to disruptive technologies, companies compete in the market much more widely; not only locally, but also internationally, so the constant search for innovation is a priority.
How does digital transformation contribute to this process?
Digital transformation is a key to understanding the process of any disruptive innovation, as both have a major impact on society – and they often work together.
Thanks to the high technological level with which we live, people have changed their consumption habits, services today are more efficient and faster, and customers more demanding. This favors the increase in disruptive innovations.
Every company needs to ask itself about the use of technologies to create new spaces that meet the needs of customers. You must think of a technology that is friendly and much more accessible than the technology of your competition.
Both digital transformation and disruptive technologies allow the development of minimum viable products (MVPs), that is, they facilitate the creation of solutions for any problem that a consumer may have in a digital product or service.
It has already been mentioned that digital services encourage customer empowerment, so ensuring a pleasant experience is essential.
The new digital tools allow you to segment and monitor the audience in a personalized way and, in turn, identify areas of opportunity almost immediately for the improvement of the product or service.
Sales and customer service are fully adapted to the taste of consumers, so technological development often attracts pleasant experiences.
So far we have seen how technology can be and how it creates spaces for disruptive innovations; however, this is not the only way. It’s time to talk about empathy.
It is essential that companies think of a business model focused on a deep understanding of customers’ needs by linking disruptive products and services. O design thinking, for example, arose from this need. Remember that this is not just about technological innovation, but also about revolutionizing ideas.
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Examples of successful disruptive innovation
It is known that the Internet has dramatically revolutionized consumer relations between people and businesses. Most consumers today have multiple devices with Internet access; these devices are great examples of disruptive technologies.
Smartphones, Smart TVs, tablets and laptops are just consequences of revolutionary ideas. Through these devices, consumers can access various services or products, and their needs can be met within reach of a “click”.
Customers can access transportation or hosting services like Uber and Airbnb or, also make purchases on platforms like Amazon or E-bay.
Therefore, we note that business models have also changed. A great example of this is the SaaS (Software as a Service) model, in which companies use software with a single server to offer an online service.
We can also mention streaming services – like Netflix and Spotify – that offer music and series or movies for entertainment in exchange for a monthly fee. In this model, the company does not charge music or television series, but the use of the platform itself.
Success cases are more and more numerous to the point that it is impossible to mention them all. Today, people have the opportunity to do business in their homes, thanks to disruptive technologies. Not satisfied with that, they can go even further.
The success of a business no longer requires a large investment, nor is it exclusive to monopolies or large companies. Companies and consumers only need an innovative idea and the right tools to create a 360 ° change in the market.
Consumer relations have been more than affected by disruptive technologies – they have been completely transformed. Buying processes are much faster and simpler, which led customers to seek greater comfort and increase their demand.
New spaces have emerged for disruptive innovations that result in new technologies for products or services.
When introducing new proposals, the reality of a consumer market was redefined, where business models evolved and addressed new emerging markets in the creation of new forms of relationship with the customer.
The benefits of disruptive technologies are numerous for businesses and consumers; they are cheaper, practical and simple to purchase. However, new technologies and methods bring challenges that every entrepreneur must consider.
Businesses or companies must be constantly renewed and must do so intelligently. Both established brands and those that have just emerged must be at the forefront if they want to position themselves.
Disruptive technology can bring competitive advantages and benefits. To detect new spaces of innovation it is necessary to have:
- knowledge of analysis and use of existing tools.
Just look at the world to see that both companies and users are constantly innovating.
Companies and services like Apple, Facebook, Skype, Amazon, WhatsApp, Uber, Netflix, Spotify and Airbnb are just a few examples that have revolutionized the market and found a place in people’s daily lives. It is a matter of using intelligence, being creative and daring.
Do you already have a business or are you thinking of opening one? Do you want to know more? In addition to an excellent attitude, it is necessary that you stay informed. We can help you! Keep up with us and learn more about innovation projects.