PAGE 3 DISRUPTIVE INM VOLUME 9
INNOVATIONS mainstream requires lots of business model and process changes, which were fundamental to the disruptors. Hence, a lot of these disruptors join hands with larger, more established organisations, which have huge resources at their disposal. WhatsApp, which was successful in eliminating the text message space, and its acquisition by Facebook is one such example; the other one being acquisition of YouTube by Google.
Change is a requirement Nowadays, companies have identified the need and are themselves looking for disruptive innovations from inside their own organisations. Disruptors usually enter in the lower-end and end up putting a downward pressure on the industry, and eventually over-take a huge chunk of the market. One of the biggest advantage to these emergent is the first mover advantage, which these companies leverage
Companies leverage this structure. identifying these disruptors at a small scale and making a transition in the business model to adapt to these is a must for organisations to survive. Evolution of photography from the chemical to digital, is an insightful example to explain the same. Incumbent leaders like Kodak and Polaroid, understood the shift, but due to organisational priorities, constraints and internal conflicts, the shift could not be made, leading to these organisations losing the complete customer market space. This is usually a result of Marketing Myopia, where the businesses are too focused on their narrow offering and major consumer base, that they turn a blind eye to the shift in industry preferences and practices. The need of the day is to proactively identify and adapt to these changes and work towards a business model to maintain a hold on the market and evolve business practices to meet the changing consumer preferences.
fully, but the risk involved is also high.