What if I tell you that a new search engine would replace Google and become the top search engine in the world.
Would you believe me?
If you are a data cruncher like me, you might not believe me.
The reason is that Google dominates the search engine industry with 92% market share and its closest competitor is Bing, which has a market share of only 2.34%, as shown by Stat Counter data.
Similarly, if I tell you that a new desktop operating system will soon replace the Windows operating system as the market leader you’ll let me know that I’ve lost my mind. According to statistics, Microsoft Windows has an 86% market share in the desktop operating system market and its closest competition comes from none other than Mac OS which only has a market share of 11%.
You might be thinking how a new entrant can beat Google and Microsoft in the search engine and desktop operating system market?
It is not possible, right?
That is what business disruption is all about. You might have heard about it because it has become a buzzword lately and is thrown around like crazy, but do you know what it really means and how is it changing our world and creating new opportunities for businesses?
If not, then read on.
In this article, you will learn about how business disruption is opening new avenues and reshaping our world.
What Is Disruptive Innovation?
Disruptive innovation is innovation that creates a new market or value that disrupts an existing market. It is a process where an underrated product or service starts to grow in popularity, displace and eventually replace an established player or market leader. The term was first used in 1995 by Clayton Christensen.
What’s even more impressive is the fact that these products begin their journey from the bottom and slowly climb their way to the top and dethrone the market leader. Disruptive innovators have smaller margins, niche market and simple product offerings.
Clayton Christensen, who coined the word “Disruptive Innovation” highlighted the reason why most business struggle with disruption when he said, “The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption.”
Phases of Disruption
There are three phases of disruption
When a new player enters the market, whose primary objective is to disrupt the industry, the market leader is in paralysis state. They tend to ignore the progress they are making. Soon, that startup starts to challenge its supremacy. This is when they begin to react, but it was too late. Now, they will have to transform themselves to stay relevant; otherwise, they will be lost in oblivion.
Best Examples of Business Disruption
Although there are numerous examples of digital transformation and business disruption, some of the best examples of disruption that your business can learn from are as follows:
How Disruption Is Transforming Business Landscape?
Here are four ways in which disruption is changing the business world and creating new opportunities.
1. Delivering Convenience
With customers demanding convenience, businesses are looking for new ways to serve their customers in the most convenient fashion. In fact, one of the main reasons behind the ever-growing popularity of E-commerce is convenience. You don’t have to visit a brick and mortar store to buy your favorite products. You can purchase the product online from the comfort of your room and get it delivered to your doorstep. Convenient! Isn’t it?
Leading E-commerce stores such as Amazon brings millions of products at your fingertips and enhances the shopping experience even more by offering complimentary services such as Amazon Prime, which comes with extra perks such as free shipping and the ability to stream music and videos from its huge collection.
Despite dominating the E-commerce space, Amazon is disrupting the retail industry with Amazon Go, thanks to its unique business model. Amazon Go is basically brick and mortar store which allows shoppers to enter the store, pick up the product they want to purchase and walk out of the store. Yes, you read that right. You don’t have to wait in long checkout queues and your bill will be paid through your Amazon account.
2. Redefining Business Models
Most people use to subscribe to cable TV, newspapers and magazines, but there are business disruptors who are looking to change that. Companies like Dollar Shave Club and Birchbox are leading the way in this regard are everyday necessities into subscription by disrupting traditional business models.
Dollar Shave Club experimented with delivering affordable razors to customers and it worked. Birchbox shook up the fashion industry by delivering monthly makeup boxes, skin and hair care products at the doors of women. Thanks to high-speed internet connections and powerful mobile devices, businesses can implement subscription-based services more efficiently. Netflix, Spotify and Pandora are some of the best examples in this regard.
3. Effective Communication and Collaboration
Business disruptors are leveraging technology to change the way we used to communicate and collaborate. Communication tools such as Skype let you stay connected to your remote teams. Cloud storage options like Dropbox and Google Drive let you create, edit, collaborate and share documents with your team members. Task management software such as TaskQue enhances your productivity.
4. Revolutionizing the Logistics and Transportation industry
Logistics and transportation are some of the hottest industries which are ready for disruption. Autonomous vehicles such as driverless cars, trucks and drones are no longer a dream, but a reality. E-commerce businesses can benefit from these innovations in logistics and ensure on-time delivery. Companies like Uber and Lyft have changed the way we move from point A to point B.
Human involvement in logistics operations will see a sharp decline in years to come as businesses move towards automation. This will help them minimize human errors and ensures seamless movement of goods from one place to another. Moreover, it will reduce costs by preventing delays.
What impact does business disruption have on your business? Let us know in the comments section below.