What Is Disruption in Innovation? How Do Businesses Achieve Success Through This?
As entrepreneurs and business owners, we generate ideas to find solutions to real-life, practical problems that will ultimately fulfill a gap in the market. In order to lead these ideas forward and disrupt the common grounds of business, innovation is key!
Innovation is a complex subject but can be divided into four areas, including, product, service, process and technological innovation. In turn, innovation can be compartmentalised into three types, namely, sustaining, radical and disruptive innovation. While all types involve varying levels of innovation, it is disruptive innovation that shakes up existing markets.
In this article, we delve into disruptive innovation and the characteristics thereof, plus we examine two businesses that have disrupted common grounds in order to forge a new direction in practices.
Areas of Innovation
Innovation is defined as the implementation and action of ideas that lead to outcomes such as the introduction or improvement of new products or services. While there are several areas of innovation, let’s look at product, service, process and technological innovation.
· Product Innovation: Product innovation includes the development of brand-new products, changes in the design of existing products and the introduction of new materials or other components in the manufacturing process. Example: Wireless headphones
· Service Innovation: Service innovation refers to the innovation in services, the innovation in services processes and the innovation in service firms and industries. Often, the innovation is focused on the non-technological aspects opposed to the technological aspects. Example: Uber taxi service
· Process Innovation: Process innovation combines the skills, technologies and structures that are used to produce products or services. This occurs when the process innovation performs an existing process in a new way that is highly beneficial to those who perform the process. Example: The car moving assembly line