How To Become The Next Disruptive Innovator

How To Become The Next Disruptive Innovator
SHARE
THIS



In this guest column, entrepreneurial strategist, Paul Broadfoot (pictured below), who is also author of Xcelerate: Innovate your Business Model, Disrupt your Market and Fast-hack into the Future says too many of us often confuse disruption for innovation…

Disruption and innovation are seen as the coolest toys in the sandpit right now. Yet these terms have been around for decades, so why are we all keen to play with them now? Clayton Christensen coined the term disruptive innovation in his 1995 Harvard Business Review article ‘Disruptive Technologies – catching the wave’. He then went on to detail the theory in his book The Innovator’s Dilemma in 1997.

Paul Broadfoot 3

According to Christensen, disruption is a process whereby a newer market entrant introduces a product or service that caters to segments of the market that incumbents have overlooked or whose offering is less appealing. The new offerings are often not as good as the incumbents, but are often cheaper. The new offering thus finds a foothold in the market, from which the new entrant can improve performance to the point where an incumbent’s mainstream customers start switching to the disruptor.

A good example of a disruptor is Virgin Blue when they first entered the Australian skies in 2000. Their offer to customers was restricted meals, baggage and flexibility in return for much cheaper airfares. This attracted the attention of a previously unserved segment of travellers who couldn’t afford to fly between capital cities and thus tended to drive.

By 2011 when Virgin Blue became Virgin Australia, they were competing with Qantas and had gained market share from mainstream holiday and business travellers.

Many companies work hard at launching something new into their market – a better TV, a better pharmaceutical, a better muesli bar. These companies are not disruptors but innovators, working to bring a superior product to market and attract mainstream customers.

Great examples of innovators are Gillette, which always launch new blades and razors, Arnott’s, which launch new biscuits, and LG, which launch new TVs.

Unlike disruptors, new users are not added to the market with each innovation, but switching from the old product to the newer, better one is a result.

So if disruptors add new users to a market and innovators add better products to the same users, a company that does both is called an xcelerator.

How to disrupt, innovate and xcelerate your business growth

Type Product/Service Users
Disruptor Initially Inferior Add new users to market
Innovator Superior Same market size
Xcelerator Superior Add new users to the market

 

It’s not enough anymore to focus just on innovating your products and services because it’s no longer a guarantee of success in a market that is changing faster than all current generations have ever seen. It’s also not easy to come up with new products or services, especially if you’re under attack from the latest competition.

This is why you must become an xcelerator, a company that innovates their business model and disrupts their market at the same time.

You have to spend time innovating the way your company works, which you do through the Xcelerate framework:

  1. Business model – what your income-generating asset and activity is (one of 24 types in today’s market) e.g. digital: distribution?
  2. Revenue model – how you charge your customers e.g. own or rent? How many parties involved?
  3. Communication model – the way you go to market e.g. face to face or word of mouth?
  4. Differentiation model – the way you differentiate from your competition e.g. price, product or service?

You must disrupt your own thinking and learn to innovate the way you work if you want to be a successful organisation that stays in the game.

 

Please login with linkedin to comment

Latest News

Zenith Sydney MD Karen Halligan To Depart
  • Media

Zenith Sydney MD Karen Halligan To Depart

Zenith Sydney's Karen Halligan has pulled-up stumps, although that's not to infer bad light had anything to do with it.

by B&T Magazine

B&T Magazine
PR Agency Hotwire Rebrands
  • Marketing
  • Media

PR Agency Hotwire Rebrands

PR agency Hotwire has rebranded, yet sadly not to "Hot Cocks Who Rock Your Socks Off". Which would've been far cooler.

Challenger Agency VCCP Wins Creative Account For Torrens University Australia
  • Advertising

Challenger Agency VCCP Wins Creative Account For Torrens University Australia

After a competitive pitching process involving five agencies, Torrens University Australia has appointed challenger agency VCCP as its new brand strategy partner and creative agency for 2018. Acclaimed for its work on dynamic brands including ING and Compare the Market in the financial services sector, Laureate Australia CMO Anne Da Cunha said VCCP’s reputation as […]

GumGum Appoints Ansible’s Sarah Baskerville As Victorian Sales Director
  • Advertising
  • Technology

GumGum Appoints Ansible’s Sarah Baskerville As Victorian Sales Director

AI advertising company GumGum has announced the appointment of Sarah Baskerville as its sales director for Victoria. Baskerville joins GumGum from Ansible, where she spent two years as its Melbourne mobile director. Prior to joining Ansible, she was head of specialist sales and partnerships at News Corp Australia, and also held a number of sales […]

The Diamond Concierge Gives Away $85K Ring In Campaign By McCann Queensland
  • Advertising
  • Campaigns

The Diamond Concierge Gives Away $85K Ring In Campaign By McCann Queensland

McCann Queensland’s second instalment of ‘The 5th C’ campaign launched over the weekend for online diamond retailer The Diamond Concierge, which received over 47million views around the world in the first 48 hours of it being released. In this second phase of the campaign, The Diamond Concierge gave away an $85,000 diamond ring, with Gold […]

Sparro Recruits Key Account Director Following Client Wins
  • Marketing

Sparro Recruits Key Account Director Following Client Wins

Digital marketing agency Sparro has announced the appointment of Hannah Jones (pictured above) as a key account director following a spate of client wins. Jones joins Sparro’s senior team alongside founders Cameron and Morris Bryant, overseeing a portfolio of accounts that includes Webjet, Domino’s Pizza, TAFE NSW, Temple & Webster, F45 Training and Bing Lee. […]

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry
  • Media

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry

In an industry facing change, Jacqui Mooney, editor of Women’s Health believes brands such as hers will continue to be a constant. Please note: this article was contributed by Magazine Networks. The magazine industry may be seeing substantial change but Jacqui Mooney has a goal that remains firm: to create happier, healthier lives for Australian women. […]

Why Consumer Brands Are Failing Aussie Mums
  • Marketing
  • Opinion

Why Consumer Brands Are Failing Aussie Mums

Is your game chainsaws or large marlin wall-hangings? Can't seem to attract the mums? This couldn't come soon enough.

Opinion

by B&T Magazine

B&T Magazine
Network Ten Creditors Approve CBS Deal
  • Media

Network Ten Creditors Approve CBS Deal

It seems the fight for Ten between CBS and media moguls Lachlan Murdoch and Bruce Gordon may finally be over.

by B&T Magazine

B&T Magazine
MKTG Signs Exclusive Commercial Partnership With PlayersVoice
  • Marketing
  • Media

MKTG Signs Exclusive Commercial Partnership With PlayersVoice

MKTG has announced it has signed an exclusive commercial partnership with newly-launched sports storytelling site PlayersVoice.com.au – an agreement that will see the agency move into a new territory of sports marketing. The partnership between MKTG and PlayersVoice will see the business managing brand partnership opportunities for the new platform; working with clients to deliver […]

Domo Introduces New Data Security Software Solution
  • Marketing
  • Technology

Domo Introduces New Data Security Software Solution

Domo has announced it has introduced new cloud security technology for its Bring Your Own Key (BYOK) software, which includes unique capabilities like rolling generation of data encryption keys and a built-in kill switch. Domo BYOK is the first BYOK enterprise software solution for cloud analytics and business intelligence, and builds on the company’s existing security, compliance and […]

Shopper Media Group Grows Sydney & Melbourne Sales Teams
  • Advertising
  • Marketing
  • Media

Shopper Media Group Grows Sydney & Melbourne Sales Teams

Shopper Media Group (SMG) has continued to grow its Sydney and Melbourne sales teams to keep up with the demand for Smartlite Panels for shopping centres. Ashley Munro joins SMG as group sales manager for Sydney, having previously worked in a similar role at NOVA Entertainment. Laura Mason has been appointed as SMG’s business manager […]

RIO DE JANEIRO, BRAZIL - AUGUST 14:  Usain Bolt of Jamaica competes in the Men's 100 meter semifinal on Day 9 of the Rio 2016 Olympic Games at the Olympic Stadium on August 14, 2016 in Rio de Janeiro, Brazil.  (Photo by Cameron Spencer/Getty Images)
  • Advertising
  • Media

Olympics, Census Prove Tough Hurdles For Media Agencies: SMI

Australia’s media agency market has experienced another tough month in August, according to the latest data by Standard Media Index (SMI). SMI noted the softer demand this time around was primarily due to the Rio Olympics and Census providing abnormal bookings last year, resulting in demand for August 2017 so far being back 12.1 per […]