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

Paul Broadfoot reno rumble

Latest News

Diesel Turns Online Hate Into Cool New Fashion Campaign Littered With Stars
  • Campaigns

Diesel Turns Online Hate Into Cool New Fashion Campaign Littered With Stars

Italian youth fashion brand Diesel has unveiled its latest campaign that uses social media hate and turns it into a clever new campaign. The ad stars Nicki Minaj, Gucci Mane, Bella Thorne, Tommy Dorfman, Miles Heizer, Yovanna Ventura, Barbie Ferreira, Yoo Ah-In and Jonathan Bellini. Each celebrity chose some of the worst comments they’d received, and Diesel designed exclusive items for each […]

by B&T Magazine

B&T Magazine
Infographic: How Sponsoring An Event (Like Goat Yoga Or A Garlic Festival) Can Grow A Business
  • Marketing

Infographic: How Sponsoring An Event (Like Goat Yoga Or A Garlic Festival) Can Grow A Business

A common malady of marketers is how to best spend their marketing dollars and get the best outcomes (ie. sell more stuff). But a new study suggests that going “hyper-local” could be an easy and effective place to start. The study, by US marketing firm Zipsprout, says that micro-targeting local consumers via corporate sponsorships can be one of […]

by B&T Magazine

B&T Magazine
Clemenger BBDO’s ‘Exceptions To The Rule’ Recruitment Program Now Open
  • Advertising

Clemenger BBDO’s ‘Exceptions To The Rule’ Recruitment Program Now Open

The annual search for Australia’s best and brightest talent has launched today through Clemenger BBDO’s ‘Exceptions to the Rule’ program, with applications open for placements across Clemenger BBDO Melbourne and Sydney. ‘Exceptions to the Rule’ is a commitment to the agency’s belief that the future leaders of the creative industry aren’t solely coming through traditional […]

The Six Types Of Meetings People Despise
  • Media

The Six Types Of Meetings People Despise

Donna McGeorge (pictured below) is a speaker, author and mentor who helps people make their work work. She is also author of The 25-Minute Meeting: Half the Time, Double the Impact. In this guest post, McGeorge says most of us despise the office meeting and here’s the six worst types… I once heard a very senior leader […]

Opinion

by B&T Magazine

B&T Magazine
Mango Melbourne Announces Three New PR & Event Hires
  • Marketing

Mango Melbourne Announces Three New PR & Event Hires

Mango Melbourne, part of the DDB Group, has welcomed three new team members following recent business growth. Carol Laws (right in photo), Janette Henstridge (left) and Maddie Poulson (middle) bring with them experience across PR and events, in sectors including consumer, retail, telecommunications and fashion. An account director with previous roles at Kate & Co […]

Why Curiosity Matters In Leadership
  • Opinion

Why Curiosity Matters In Leadership

Corrine Armour (pictured below) is a leadership expert who helps leaders and organisations develop fearless leadership and deliver transformational results. Armour is also the author of Leaders Who Ask: Building Fearless Cultures by telling less and asking more. In this guest post, she asks are you a genuinely curious leader or just a judgemental one? Curiosity creates […]

Opinion

by B&T Magazine

B&T Magazine
Businesswoman hand connecting jigsaw puzzle, Business solutions, success and strategy concept
  • Media

Tealium Partners With The Lumery

Tealium, the leader in real-time customer data orchestration solutions, and The Lumery, a full-service customer experience agency, have partnered to bring to life the vision of a full MarTech ecosystem for Vocus Communications. Vocus recognised a huge opportunity for growth through the digitisation of their consumer brands. As such, Vocus has begun the process of […]