Who remembers #MicroEconomics101?
Against competition and market needs of today, how well is your idea, firm and business answering these good old three questions.
1. What to produce?
2. How to produce and?
3. For whom to produce?
#DisruptiveInnovation happens when we try answering two of the three questions differently from the industry norm.
How Disruption Happens. Innovation happens everyday but not the Disruptive ones. Yes, not all innovations are disruptive. But when disruptive innovation strikes an industry, today’s success can be the greatest enemy of tomorrow’s success. Disruptive innovation is a strategic type of innovation. It happens when at least two of the three basic economic questions are for the first time in its industry being answered differently. Every time a market or industry is disrupted, its model is forever changed. Our world is at that point right about now, craving for us to initiate it. It is inevitable. So you’re either on the table pioneering it or you are on the menu being consumed by it. #LeadTheInnovation
An example of Disruptive Innovation is what Silverbird did with Cinemas, Pageants and Media in Nigeria, what Nathaniel Bassey did this year with the Halleluyah challenge (vigils on Instagram).
A disruptively firm doesn’t just start, it comes in as an underdog, takes an isolated or uncontested or neglected space by cross pollinating industries (e.g beauty meets with media and pageants are formed, IT met with banking and Interswitch was born, when the Internet met with school year book, Facebook was born).
Since innovation can only come from something external of its system, so it cross pollinates.
And in that process, it creates a new market and value network by altering two of the three economic questions, and eventually disrupts an existing market, displacing established market leading firms of their both hybrid industries, thereby creating new products and alliances that solves problems.
Examples of Disruptive firms (underdogs taking out giants into being obsolete).
Well, Wikipedia did that to libraries, Encarta and encyclopedia. Uber is currently displacing yellow cabs across cities all over the world, the same way Google is doing that to our Atlas Maps, Netflix is doing same to cable TV, Whatsapp successfully displaced Blackberry Messenger. You too can.
*TheTrick*: Just try disrupting two of the three sides of the triangle and a totally unique business model, a new value market and a new product without competition will be formed!
Eizu, ©Hexavia!
Strategy. Business StartUps and Corporate Restructuring Consulting
T: 08035202891
Uwaoma Eizu is the lead strategist at Hexavia! He is a graduate of Mathematics with two MBAs and over a decade of experience working with startups and big businesses. His core is in building startups and in corporate restructuring. He is also a certified member of the Nigerian Institute of Management, Institute of Strategic Management of Nigeria and the Project Management Institute, USA. By the side, he writes weekly for the BusinessDay newspaper.
