Whether in Silicon Valley, or basically anywhere else in the world, people talk about ‘disruptive innovation’ or simply ‘disruption’. Do they really know what it means? Or they are just trying to follow that new trend, and fit in the ‘innovation world’? Actually, knowing what disruption means makes you more sophisticated than just randomly using the word. This is why this article is a must-read.
What is disruption?
You should thank Clayton Christensen, of Harvard Business School for this “new” term. He used it in his book “The Innovator’s Dilemma”, to describe innovations that created new markets by discovering new categories of customers. I believe that these two words are losing their serious aspect, and are becoming more of “buzzwords”, that a lot of people use on social media. Indeed, the word was mentioned more than 2,000 times in articles last year. But a lot of people still get it wrong.
There are two types of “innovators”: those who simply work to improve existing products (this is what we call ‘sustainable innovation’). And those who invent new products, creating new markets. And these are called ‘disruptive innovators’.
Let’s go back in time, when people used to go from one place to another in horse carriages. Back then, “innovators” obviously tried to find ways to make the horses go from point A to point B faster. Until the first automobile was invented. New markets were created. Also, new needs and demands had to be served. So, in other words, new business models had to be put in place. As a matter of fact, disruption is a process, not just a product or a service offering, like a lot of people might believe.
This gives you a clearer picture of what a “disruption” or a “disruptive innovation” is. It is a new way of exploiting old or existing technology, to create something pioneering.
What is uberization
Uber, the multinational online taxi dispatch company, is the first example that comes to one’s mind when talking about ‘disruption’.
It is important to note that, by “uberization”, we do not only mean the Uber company, but also the new model that came along with the startup creation. It is very simple. Just like Uber transformed the taxi industry with its new technologies, you can do the same in your industry, whether you are in healthcare, agriculture, or finance. The recipe for the new model is easy: you take traditional jobs, you add new technologies including new elements such as measurement of supply and demand, worker’s performance, and customer satisfaction, and you mix all the ingredients! You get an ‘uberized’ model.
A lot of businesses are trying to implement this model to their structure, such as grocery shopping, or laundry, or even medicine. Basically, what they do it that they gather and combine buyer and seller information on one platform in real time. They work as an intermediary between the two parties.
This model was superbly accepted by the Society because it helped them lead a more flexible lifestyle. It also gave them the opportunity to have a better balance between full-time employment and having their own-business. It’s the perfect option that comes in between.