Disruptive Innovation

Jun 16, 2023 10:44:44 PM | Trends Disruptive Innovation

The world has changed drastically due to technological dependence. Disruptive innovation creates and disrupts markets, like Uber and Netflix. Invest in innovation with Startup Venture Builder.

Have you ever stopped to think about how the world has changed in recent years? Currently, we are so dependent on certain technologies that it is impossible to imagine life without them. Many people do not even remember, or have never seen, what the “pre-internet” era was like. It is this type of disruptive innovation that changes the world, and that we are experiencing practically all the time.

The concept of disruptive innovation is quite simple, but it was a little confusing and difficult to understand because of the words that ended up becoming jargon, without much meaning. Innovation is a great example of this. It is one of the “buzzwords” of the corporate world, which every manager wants to find. While it's ideal to always look for innovation, many don't have much sense of what they're looking for and why. This concept, in popular terms, is associated with anything new or modern, but in fact it goes much deeper.

According to its creator, Clayton Christensen, professor at Harvard University, disruptive innovation is an idea, strategy or product, that is, any innovation that creates a market, or radically changes an existing one, destabilizing competitors.

A clear example of a disruptive innovation is Uber. Remember your mom saying, not so long ago, not to talk to strangers on the internet and not to get into strangers' cars? Uber brought a concept where you literally call a stranger on the internet to get in his car. And probably even your mother uses it.

The app popularized the "gig economy" and the sharing economy, which not only completely changed the transport market, but several others.

Innovation can come in many forms

Your mother also probably told you not to get too close to the television because it was bad for your eyes. Nowadays, with VR glasses, you literally stick the television in your face. And VR is still just getting started, with many disruptive innovations set to take place within it.

Imagine a concert, a football game or any other such event, with a 360 camera in the front row. At home, you can put on your VR glasses and watch the show from the best seat, without leaving your couch. It's a disruptive innovation waiting to happen. As soon as technology becomes a little cheaper and more accessible, we will see these ideas come to life.

Want one more example?  Netflix is a disruptive innovation that has changed the market in an absurd way. In addition to literally killing its direct competitor, it also changed the movie industry, both in movie production and in people's habit of leaving home to go to the movies.

A lot of people don't know, but Netflix offered the late Blockbuster a partnership in the business, which was denied. Nowadays, it's practically impossible to find a video store.

Nubank is also one of the most innovative companies in the world, which is scaring more traditional banks, who have even started to copy it. On the surface, Nubank is not much different from other banks. Its proposal is just to provide a better service. Based on the results, this proposal is working very well.

Products, services and ideas. Disruptive innovation can happen in many ways and all the previous examples are great to illustrate how it can change a market and even the world

Has your company ever thought about investing in innovation? Schedule a conversation with one of our consultants and learn about the products and services that Startup Venture Builder can implement in your business.

Written By: Marco Santos