Disruptive Innovation is the term used to classify a type of innovation that arises from the disruption of existing structures, thus generating a difference in the way people consume and use certain types of services.
By creating new markets and breaking paradigms, Disruptive Innovation is able to transform the dynamics of a company and change the way products will impact consumers. An example of these transformations is the Remote First Culture that has brought countless possibilities to the business.
With great achievements in society, Disruptive Innovation is able to generate new jobs, transform the quality of life of society, increase the efficiency of companies and even generate positive impacts on the environment.
Check out the main topics on Disruptive Innovation and its examples below.
Traditional Innovation vs. Disruptive Innovation
Traditional technology refers to a set of technologies that have been on the market for some time. Considered stable and mature, its changes and improvements took place over a long period of time. This means that it serves to meet people’s basic needs.
On the other hand, Disruptive Innovation seeks to significantly change the market, transforming it entirely and changing people’s habits in some way. Starting with a small number of users, Disruptive Innovation starts small, eventually growing and replacing traditional technology.
The Importance of Disruptive Innovation
By being able to completely revolutionize the market, Disruptive Innovation is an important pillar in society. Its strength drives the economy and stimulates the competitiveness of numerous sectors, helping to create job opportunities and to support economic growth.
Disruptive Innovation is able to circumvent uncertain scenarios, generating technological innovations for companies. In addition to bringing socio-environmental benefits, promoting sustainability, greater quality of life and accessibility.
Examples of Where to Find Disruptive Innovation
So far, a lot has been said about Disruptive Innovation, but if you have not yet understood how this structure works in practice, we have separated some examples to help clarify things. Check it out below:
Online movie and music platforms, without leaving home. Netflix has revolutionized the market, leading to the extinction of rental companies, just as Spotify has been wiping out CD sales. These types of services are considered Disruptive Innovations because they are seen as technological innovations that have transformed the entire market.
Capable of innovating various industries, with multiple task execution, Artificial Intelligences are disruptors in the technology market. An example of what we are talking about is Chat GPT, a chatbot tool that promises to perform various functions in a simple way for its users.
Nubank, C6 Bank and even physical banks like Itaú have been migrating their modus operandi to offer their customers a digital format. Responsible for providing cards and online services, the disruption of these banking models is found in the fact that there is no annuity charge.
Online hosting service
For some years, the online hosting service has been drawing attention in the world for its practicality. Sites like AirBnb allow people to advertise property rentals to third parties. The service is sought after by people seeking temporary accommodation other than traditional hotels.
● Encyclopedias: Known as a collection of information organized in alphabetical or systematic order, it is used as a reference source for several areas.
● Digital transport service: These are platforms or applications that allow you to request transportation services, such as shared rides or taxi rides that work through geolocation technologies.
● Cryptocurrencies: Famous crypto-based digital currencies, which use blockchain technologies to conduct transactions. These coins work in a decentralized manner, without government or bank intervention.
With globalization, it is normal that we are exposed to the use of Disruptive Innovation. It is often present in our routines, transforming our behaviors all the time without us even realizing it. This is what makes it a great powerhouse of transformation in the market.
If you are interested in topics such as innovation and technology, take the opportunity to check out the Creativity, Innovation & Entrepreneurship and Leadership in an Age of Disruption courses offered by IBS Americas at universities in Europe and the United States. Be sure to check out other international executive course options here as well.