Radical vs disruptive innovation and why companies die.
A thread:
A thread:
Understanding what counts for innovation is crucial for businesses.
This post does a great job of distinguishing between 'disruptive' innovation and 'radical' innovation.
ribbonfarm.com/2007/07/23/dis…
A thread on the two axes of innovation:
This post does a great job of distinguishing between 'disruptive' innovation and 'radical' innovation.
ribbonfarm.com/2007/07/23/dis…
A thread on the two axes of innovation:
1/ Disruptive innovation has everything to do with business and markets, tech is optional.
It is the systematic unbundling of incumbents based on new ideas around the business model.
It is why PG/YC says that you need to dominate a small market first. You can sneak in.
It is the systematic unbundling of incumbents based on new ideas around the business model.
It is why PG/YC says that you need to dominate a small market first. You can sneak in.
2/ Three examples of disruptive innovation:
@SuperhumanCo is on a mission to make email 10x better than it currently is.
Saying that users like their product would be an understatement.
Lightning fast experience and focus on customer 'delight'.
@rahulvohra @SanketFirodiya
@SuperhumanCo is on a mission to make email 10x better than it currently is.
Saying that users like their product would be an understatement.
Lightning fast experience and focus on customer 'delight'.
@rahulvohra @SanketFirodiya
3/ @RobinhoodApp is on a mission to democratize the financial system - no commissions.
Their recent tweet is the textbook definition of what counts as disruptive innovation.
Literally made their own clearing system.
@vladtenev @bprafulkumar
Their recent tweet is the textbook definition of what counts as disruptive innovation.
Literally made their own clearing system.
@vladtenev @bprafulkumar
4/ And my favourite example - @LambdaSchool
Disrupting the college degree.
New business model + an education delivery system built for a world that is changing rapidly.
Focus on how to learn, working in groups and learning by doing.
@AustenAllred
Disrupting the college degree.
New business model + an education delivery system built for a world that is changing rapidly.
Focus on how to learn, working in groups and learning by doing.
@AustenAllred
5/ @suhail's recent tweet embodies the same message:
Incumbents who lose focus of their core offerings are ripe for disruption.
Incumbents who lose focus of their core offerings are ripe for disruption.
6/ A typical disruption story looks like this:
- opportunity too small for incumbent to care about
- disruptor finds product market fit and hits the gas
- incumbent scrambles to mount a defense via imitation, m&a or undercutting disruptor
- opportunity too small for incumbent to care about
- disruptor finds product market fit and hits the gas
- incumbent scrambles to mount a defense via imitation, m&a or undercutting disruptor
7/ What does radical innovation look like?
I think of it as anything that brings about a change of paradigm.
Three examples of radical innovation
- iPhone
- Nike
- crypto (possibly)
As is evident, this type of innovation relies heavily on creating new ways of doing things.
I think of it as anything that brings about a change of paradigm.
Three examples of radical innovation
- iPhone
- Nike
- crypto (possibly)
As is evident, this type of innovation relies heavily on creating new ways of doing things.
9/ Why do companies die?
Geoffrey West in his book Scale describes the process from a systems pov.
Survival =/ growth
Survival = nimble, adaptable.
It is balancing the market forces that push the co to optimise (costly in long term) against antifragile experimentation.
Geoffrey West in his book Scale describes the process from a systems pov.
Survival =/ growth
Survival = nimble, adaptable.
It is balancing the market forces that push the co to optimise (costly in long term) against antifragile experimentation.
10/ Tech companies have taken cognisance of this fact and have devised their own methods of staying alive.
11/ Imposition of order (metrics that remain stagnant) is the cause of decay in the usefulness of systems.
