Transcript:
Over the past 20 years the word disruption has been thrown around to describe many revolutionary companies but what does it mean but simply disruption is a process where an innovation creates new market structures which consequently destroys existing ones while this seems to happen in very different ways most disruptions actually follow three stages they are market opportunity disruptive innovation and creative destruction let’s take a closer look at these steps using Apple and their disruption of the portable music player market first off is market opportunity Apple’s former CEO Steve Jobs identified a myriad of problems associated with portable music by examining the industry with an opportunistic mindset recognizing and validating the opportunity should always be the catalyst to innovate the next stage is disruptive innovation jobs and the team were meticulous in creating a product that was of significantly higher quality compared to competitors offerings ultimately the innovation must simultaneously achieve the same outcome in this case portable music without the drawbacks of the other products the last stage is creative destruction here is where old structures are destroyed as a result of mass adoption of the innovation in the case of the portable music player the mass market for disciplines and even the entire CD industry were thrown into uncertainty in the wake of the new iPod that could carry 1,000 songs in your pocket regardless of the type of disruption from Apple to Netflix to uber inch innovation follows three steps and once successful is totally irreversible while the original companies who first pioneered the disruption may disappear their legacy changes the status quo forever
Leave a Reply