iNM Volume 9 | Page 42

DISRUPTIVE INNOVATION PAGE 36 iNM VOLUME 9 CREATIVE DESTRUCTION... DEFYING THE CONVENTION GANDHALI INAMDAR BATCH 2016 18 TAPMI MANIPAL - , It is a cold November morning in Bangalore as the top 30 teams from IITs IIMs and other top Indian Business Schools gear up themselves to pitch their ideas in IIMB campus Who are they pitching to a group of 20 odd venture capitalists and investors who are there to find the next innovator or the next Sachin Bansal or a Jennifer Hyman cofounder of Rent the Runway Entrepreneurship Innovation Creative Destruction Change Technology are the buzz words around , with understanding the fundamental reasons of the business cycle booms followed by busts , ; . : , , - , , - Creative destruction is the process of industrial mutation that incessantly revolutionizes the economic structure from within incessantly destroying the old one and creating a new one Creative destruction allows fast economic growth without generating serious inflation This explains the idea behind the high valuations for companies growing in a dynamic environment and the government s initiatives to create a start up and innovation friendly environment through policies such as Start up India Digital India etc These start ups have a potential of creating prosperity even if the destructive elements bring down established corporations and lead to job losses " , . . " " , , ". , . . Welcome to the vision of Joseph Schumpeter . ’ Schumpeter was the first to draw a definite connection between the innovation or destruction performance of an economy and the functioning of its credit and capital markets Schumpeter was an Austrian trained economist economic historian and ardent capitalist He saw entrepreneurship as the mainspring of capitalism His theories anticipated an age when an entrepreneur could command as much global recognition as the president of the United States He opined that the vital force behind behind capitalism is innovation and the entrepreneur willing to introduce it Schumpeter also grappled . - , . . . . - - , . - , . It is necessary to understand why creative destructions occur and why they are potential to thrive in a competitive market Creative destruction initiatives are Cheaper from an end customer perspective More accessible from a usability or distribution perspective and use a . : ( ), ( )