You have most likely benefited from the invention of things like Netflix, Nike shoes, and sushi rolls. These are businesses that were innovative and challenged the norm. Disruption in business causes radical shifts in industries by offering unique, niche, more affordable, or untapped solutions to old or new problems. Sometimes, disruption upends existing markets; other times, it creates entirely new ones.
Disruption has a potential impact on every facet of the market, even for small businesses and startups. Let us have a look at the disruptions happening in different industries from these entrepreneurs.
What is Disruption?
Business disruption pertains to any innovation within the industry that brought about radical and lasting changes in the way companies operate. The term disruptive innovation was conceived by the late American academic and business consultant Clayton Christensen.
Christensen says that disruptive innovation occurs when a company offers a design or business model that is cheaper, more convenient, or simpler than what’s currently on the market. successfully challenge industry giants and established businesses with fresh takes on old problems.
Disruptive businesses, or disruptors, have successfully challenged industry giants and launched businesses using fresh approaches to old problems. Disruption is a recurring cycle of creative destruction – a term created by economist Joseph Schumpeter. This process tends to cause market destabilization and most often, industry panic.
Netflix is an example of disruption. This content company has disrupted its market twice. The first is via DVDs by mail, and the second is with its streaming. Most often, companies who are creating disruptions are focused on developing improved versions of their original products and offerings. They do this by incorporating new technological innovations into the offerings.
Difference Between Innovations and Disruptive Innovations
Ever since the boom of the tech industry, disruption has started to feel nothing more like someone with a great idea. However, true disruption goes beyond innovation.
Innovations can happen in an existing industry, while disruptive innovation can create a new industry. True to its name, disruptive innovation is a disruption.
In theory, disruption is a process in which a business disrupts others, taking their market share by targeting the overlooked markets. It then moves into the mainstream market and gains more market share because it is agile and can maneuver the competition.
Disruptions in Different Industries from Entrepreneurs
The improvement in technology is driving disruption across almost every industry, even those we consider traditional ones. It has broken down barriers and made it easier for small businesses to be more competitive. There are also unfortunate events like the pandemic, causing massive disruptions.
Let us take a look at what entrepreneurs have to say about the disruptions going on in their industries.
1. Solutions for workers on the go
According to Justin Carpenter from Modern Maids, he has seen a greater demand for solutions to help employees who are on the go. He is quite optimistic on the idea that more companies are more into this idea. To him, it means that companies need to step up their game and turn to strategies and solutions that would allow them to: communicate rapidly and keep everyone up to speed but make it fun and interactive. They also need to strengthen the culture and community while being remote.
They also need to educate their team on how they can lead effectively- and operate under remote work conditions and bring staff together with shared objectives while not being there physically. The bottom line is managers and leaders must support their people by keeping them engaged and connected using the right tools.
2. Increase distance learning offering
Because of the pandemic, Higher Education has transitioned from traditional campuses to online equivalents. This dramatic disruption is only short-term, it has longer implications. Schools with no or relatively small online programs have to increase their offerings to keep up.
As per Michael Dadashi, CEO of InfiniteRecovery, The previous issues in schools like faculty buy-in and investment capital have taken the back seat because of the realization of how fragile campus programs are compared to their online counterparts. Traditional institutions have learned it the hard way and they are not going to be taken by surprise by another event like the pandemic.
3. Chaos in the Sports industry
According to Freddie Smith, CEO of Sporting Post, To say that the sports industry is in chaos is an understatement. With the pandemic, bookings were down, many sports events were canceled. The industry was in free fall until people could travel again. But people in the industry are quite optimistic as everything has returned to normal now.
4. More interest in health products and content
According to Martin Seeley, CEO of MattressNextDay, the pandemic changed the way consumers behave. They are now more interested in health products and health-related content. It created a negative impact on the business and some of his staff had to go to keep his business running.
5. Few are getting married!
When the country went into lockdown, it halted the bridal industry. Most brides want to try a wedding dress before they buy, especially the more expensive ones. This in itself is a tradition, which is not possible in online selling. Most of the fittings for weddings later this year and the next year did not materialize.
The people behind the industry have to improvise. Some created events where they offer their boutique samples in online events. The brides can earmark or reserve the dresses for a small amount until they can come and fit them. Although this activity did not generate much cash, the objective was to get orders ready.
6. Telehealth
As per Tzvi Heber, CEO of Ascendant Detox, The main disruption in the healthcare industry is the emergence of telehealth. The pandemic brought about remote living and telehealth has become an innovative tool and is accessible. Telehealth is disruptive because it presents many advantages that traditional clinics don’t have. The advantage of not leaving your home for one. Because of this traditional clinics are trying to improve their quality of service.
7. The emergence of new players
According to Georgia McKenzie from Switch On Business, There is a significant disruption in the diamond industry due to the emergence of new technology and new players entering the market. The sales of natural diamonds are decreasing due to the rise of lab-grown stones. Several players already left the market and those that remain are focused on producing lab-grown diamonds. According to Neil, there is a major transformation in the diamond industry and lab-grown diamonds will be playing a significant role.
8. Digital Transformation
According to Jonathan Merry of Bankless Times, Technology has been the reason for many disruptions in different industries. But the last two years were the most disruptive in tech. The pandemic and its impact on business have supercharged the need to adopt digital transformation. According to the industry insiders, the first year of the pandemic is 10 years’ worth of digital transformations. With most of the world in quarantine, businesses need better ways to deliver their goods and services digitally. This has led to the mass adoption of online, cloud-based solutions.
9. Outsourcing to freelancers
Freelancers are part of the disruption happening in the graphic design industry – how the design services are being accessed. Before you have to hire a designer in-house or get in touch with a design agency with particular specialties like animation. With the current disruption, you can hire a team of professional graphic designers to work with you in demand with unlimited design at a flat monthly fee. You don’t have to be locked in a contract or have any HR responsibilities.
10. Use of cryptocurrency in transactions
According to Jonathan Merry from CryptoMonday, The use of cryptocurrency in transactions is one of the biggest disruptions in the business industry. Many businesses are now accepting crypto wallets for payment transactions, like the modeler’s industry.
Manufacturers and suppliers in the model ship space kit are now accepting transfers through their crypto wallets. Some remain skeptical about using crypto as payment but it is as simple as transferring dollars from one wallet to another. It is also convenient for businessmen who are trading cryptocurrencies because they can save on transfer fees.
Key Takeaways
Disruptions are radical changes happening in an existing industry or market by offering unique or untapped alternatives. We have seen it benefits the existing businesses that dare to ride the wave. It is good for the consumers because they have better alternatives available to improve their lives.
For entrepreneurs to succeed, their business model should include the ability to weather market disruptions. What is important is to stay true to its core offerings, prepare for change, and remain flexible.
There is no single formula for disruptions. But one thing is for sure, visionary and consumer-first innovations are always the true winners. Most innovations begin as a bright idea, it takes values, adaptation, and strategy for successful disruptive innovations.
