Out of Trouble: Innovation Doesn’t Have to Be Trouble
dISRUPTION has become synonymous with innovation. This is the dominant view of how growth is made. But distraction doesn’t have to be harmful.
With disruptive innovation, “the new comes at the expense of the old and its associated companies and jobs, creating a win-lose or winner-takes-most economic outcome. In contrast, non-disruptive innovation -ohan “achieved without disrupting a primary market and its associated companies and jobs.”
on Beyond Disruption: Innovation and Achieving Growth without Shifting Industries, Blue Ocean Strategy authors W. Chan Kim and Renée Mouborgne, present another path for business development without disruptive social effects. Nondisruptive innovation is not new, but conventional thinking leads us to pursue disruptive innovation before we consider growth through nondisruptive innovation. Focused on disruption, we miss opportunities for non-disruptive innovation.
The authors highlight a wide variety of examples of non-disruptive market-making innovations to help broaden our view of innovation.
The goal is to identify and solve new problems or seize new opportunities. APART the boundaries of existing industries to unlock non-disruptive creativity. “This approach starts with asking: Are there new opportunities that we can solve beyond current industry boundaries?”
As your focus changes in this way, so do the opportunities you see to create new markets that don’t eat away at either the margins or the core of existing industries and established players. In this way, almost all the demand is created new, resulting in uninterrupted growth.
The authors advocate for nondisruptive creativity because it creates new jobs that cannot be displaced by others. “While all new markets hold the promise of creative new growth and jobs, helping to close the jobs gap, those based on disruptive innovation do so at the expense of existing jobs in short to medium term.”
They created a framework around three paths to innovation and market growth. The type of path you take depends on the problem you’re trying to solve or the opportunity you’re trying to solve—the question you’re asking.
As seen in the chart above, offering a breakthrough solution to an existing industry problem puts you on the path disruptive creation and disruptive growth. Identifying and solving a new problem or seizing a new opportunity outside existing industry boundaries puts you on the path to nondisruptive creation and unobstructed growth. Between these two ends of the market-creating-innovation spectrum is redefining an existing problem in the industry and then solving the redefined problem. This is the essence of blue ocean strategywhich creates a more balanced mix of disruptive and non-disruptive growth.
Start With the Right Perspective
If you want to create unobstructed creativity, you must start with the right perspective(s). There are three.
First, we tend to let our thinking be constrained by our environment rather than free from our imagination. We are not bound to the world like this. Look beyond the current market and environment.
Second, nondisruptive creators do not confuse goals with means. “They see technology as a great enabler but are aware of that value innovation—offering buyers a jump in value—is what ultimately creates a disruptive new market. Instead of leading technological innovation, lead value innovation. “Successful disruptive creators think first about the value of the innovation, and then the technology to achieve that goal.” Stay focused on value innovation.
Third, disruptive creators look for creative ideas from anyone and everyone, not just from “creative types.” “It takes a network of people with different perspectives and skills to produce any disruptive creation—to cultivate, refine, and collectively figure out what needs to be learned or unlearned— pillow and where the signs are as you take them from here and there and put them. all to fulfill your new offering.”
Once we are in the right mindset, the task can be done. The second half of the book discusses how to identify, unlock, and realize non-disruptive opportunity.
The challenge for governments and societies is to create new jobs without displacing others. That’s an economic imperative and it’s a moral one — which is another key reason why disruptive market-making is about to become even more important.
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