How to Survive Disruptive Innovation

How to Survive Disruptive Innovation
September 20, 2017 234Finance

According to recent reports, the recorded sales through eCommerce platforms and channels grew by 15.6 percent in 2016. Whilst these also account for 11.7 percent of all retail sales, 43 percent of this volume can be traced to Amazon. E-commerce has no doubt changed consumers’ approach towards shopping and has altered the way entrepreneurs view innovation and understand disruption. Of course, disruption is the latest buzzword on everyone’s lips but many people do not really understand what it is.

Disruption is a radical change in an industry, that involves offering a new product or service that creates a new market. According to Clayton Christensen who coined the term ‘Disruptive Innovation’, it ensues when an industrial advancement creates brand new markets via the discovery of new types of customers. Small businesses stand to gain a lot from disruption because they are better positioned to survive disruptive innovation and come out stronger. They can also adapt to the changes more easily than bigger corporations.

Here are some strategies on how businesses can thrive in disruptive times:

Reverse Mentoring

To effectively anticipate disruption, you must engage the millennials in your company. These people will help you stay inclined with the latest trends and prepare for your industry’s next move. This is known as reverse mentoring, through paying attention to members of your team, who have a different point of view than you do. You should also encourage your employees to pitch ideas by having regular meetings with them, to deliberate over possible disruptions your industry might face.

Adapting to Change

Not everyone adapts to change easily, however, it is important to embrace change in order to survive in a fast-paced environment like the one we are currently living in. the pace of change in our environment has been described as Volatile, Unpredictable, Complex and Ambiguous(VUCA). By developing a clear connection between a product and the value your consumers stand to gain, it helps them to embrace disruptive value in your products.

Communicating Uniquely

It is one thing to communicate but yet another to communicate in unique ways. How your product simplifies the life of a customer is a clear instance of communicating uniquely. Not only is this clear, it also emphasizes the unique selling point and how it will help streamline a stressful process. Uber disrupted the taxi hire industry by offering an easy, cheaper and more modern service alternative. It also earned itself the 19th position on CNBC’s list of 50 disruptive companies in 2017. It made things more convenient and affordable for consumers, all at the press of a button.

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Author: 234Finance

234Finance is an online hub that promotes African Entrepreneurship. We feature small and medium sized businesses on the platform, shedding light on the current and future developments in diverse sectors across Africa. We also provide free resources, share opportunities and events on our platform that entrepreneurs can benefit from and thrive in Africa’s tough business landscape.

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