What is disruptive innovation? It’s a question most new business owners have, and it’s a valid one. The theory of the phrase came to fruition in 1995. Now, it’s one of the most important terms regarding exponential company growth. It’s not only for new business owners to adhere to and integrate, but large companies also still use the idea in their day to day operations. The idea is that disruptive innovation is primarily used by new companies, particularly startups. The term implies that the new business with smaller amounts of fund target neglected markets at the bottom of the popular food chain. While larger companies work on perfecting their product and customer service, the startup manages to find a new niche that could, in turn, become the new cool.
How to Use Disruptive Innovation to Your Benefit
If you’re a new business owner, this could be extremely beneficial for you. The reason being that there are always new markets that are not as saturated as others. This gives more modern companies a chance to stand out amongst the rest by identifying a need and providing the solution. When you’re building your business model, it’s essential to do your research. Does the idea you have seem to be everywhere? Are you sure there isn’t another team elsewhere doing the same thing? An excellent example is Uber or other ridesharing platforms. There was a need for a new method of transportation, and they targeted millennials that were not getting enough attention in this department. Sure, older generations still want their vehicles because that’s what they’re accustomed to. Millennials, on the other hand, are incredibly mobile and lightly weighted. The idea is to own less, and car payments don’t necessarily fit in with that type of lifestyle. The same goes for people who live in the city. Cars don’t make a lot of sense. Therefore, Uber swept in and gave younger people the answer they didn’t necessarily know they were looking for. By identifying a need, and providing a solution, they became a 2-billion-dollar company.
At SalesSparx, we believe that disruptive innovation can be fantastic for new companies, and once things settle, that’s when business owners can settle into sustaining innovation. If you’re new to the business world and you’re looking for some guidance, call SalesSparx today at (561) 558-3504 to learn more about what you can do to sell more, faster.