DISRUPTIVE INNOVATION AND S CURVE TRANSITIONS IN INNOVATION
Disruptive innovation is a prominent type of invention that has been embraced by many significant market players. The innovation S curves illustrate the various stages of innovation. Bill Fischer, professor of Innovation Management at IMD, in this podcast (link here) discusses about disruptive innovation and its incumbents and the significance of managerial decisions in anticipating disruptions.
According to Fischer, disruption occurs outside of the industry. It has grown simpler as a result of digitalization and business innovations. He believes that interruptions are driven by the needs of the client. Disruptions are unpredictable. Firms may anticipate where the disruption will occur by studying the customer journey and identifying their pain points. As a result, there is a better probability of dealing with it.
Administrative actions have a significant impact on disruptions. Most incumbent management is unwilling to make changes due to their current performance. They are hesitant to experiment with new products on the market. Here, Clayton Christon's S curves of Innovation come into play. There will come a day when all of the firm's operations will be smooth. At that moment, management must start thinking on what comes next.
Fischer suggests that the following are some of the best strategies to deal with the disruption:
- Developing a customer-centered innovation approach.
- Management must embrace change. They must be more experimental and learn new value chains.
- Celebrate new leaders and share the responsibilities.
- Promote open innovation.
Fischer further says that this approach does not guarantee success, however he does ensure that the organizations have better chances of survival if they are more open and receptive to new ideas with a growth mindset.
