Innovative Disruption is that pivot when an emerging technology and entity permanently revamps or replaces tradition. In a lecture for entrepreneurs and investors at Wednesday’s Startup Grind conference, Clayton Christensen, the construct originator, proposed that Apple, Tesla Motors, venture capitalism and the university educational system could be similarly challenged and bested by other entities and strategies that provide comparable quality at a lower cost. Rather than a discussion about finding one’s niche, the spotlight is on survival, reports BizJournals.com.
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| Image courtesy of Money.CNN |
Will people maintain brand loyalty and continue to pay top dollar for Apple’s
impeccable products, or opt for less expensive models with comparable bells and
whistles? With open source and
less expensive knockoffs, is it more impressive to have an iSomething than to
have similar functionality with money to spare? As with Apple, Tesla automakers also produce a product that exceeds consumer expectation. In this instance,
one’s excellence and premium pricing may lead less to obsolescence or relegation to an upper
echelon of client incapable of supporting current organizational infrastructure.
Recounting a story related to a missed investment opportunity for Bain Capital, Christensen cautions against venture capitalists solely
focused on mammoth investments in exchange for similarly huge returns. According to Christensen, the
flow for such opportunities is but a trickle. One must also consider the
direct-to-source option now offered by crowdsourcing. Though online opportunities do not routinely reflect the 7-figure
range, that is perhaps but a function of time.
The exclusive education offered by top universities is also
creating dangerous market conditions. In a race to be the biggest and best, they have become the most expensive which, ultimately, may be defeatist. When compared to the ease and lesser expense of online access or hybrid university structures that combine real world application with on-campus seminars, Christensen maintains the
ability to differentiate must be about more than tradition and reputation as a means of establishing value to consumers.
In all instances, implementation of deft, new strategy and
adaptability is at the center of survival. Organizations must be responsive, market-driven and forward
thinking. While it may be
uncomfortable to discuss new technology and consider ways to incorporate or
replace existing models, it is a requirement of all organizations aimed at
longevity.
As singer-songwriter Bob Dylan wisely cautioned, “Accept it that soon you’ll
be drenched to the bone/ If your time, to you, is worth saving/ Then you’d
better start swimming or you’ll start sink like a stone/ 'Cause the times they
are a-changing.’” Note to organizations and entrepreneurs: innovate or die.
