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What disruption really means
It’s the trendiest term in business today – are you using it wrong?
When talking about movers and shakers in different industries, the word “disruption” often comes up. In fact, disruption has become one of the most overused words in the business world. But what does it really mean? Should you care about business disruption or life disruption? And does all success require disruption?
Here’s all you ever wanted to know about disruptionbut didn’t know to ask.
What is disruption?
Let’s start with a dictionary definition of disruption to give us a baseline:
noun: disruption; plural noun: disruptions
1. disturbance or problems that interrupt an event, activity or process.
Disruption can be synonymous to “interruption,” which has a largely negative connotation. But for business use, the term “disruption” really took off with Clayton Christensen’s 1997 book The Innovator’s Dilemma. In it, Christensen introduced the idea of “disruptive innovation.” He used this phrase as a way to think about successful companies not just meeting customers’ current needs, but anticipating their unstated or future needs. His theory worked to explain how small companies with minimal resources were able to enter a market and displace the established system. In Christensen’s writing, business disruption was a good thing.
Business disruption was a powerful concept when Christensen first published it, but like most buzzwords, the term quickly took on a life of its own. Suddenly everyone in the workforce was “disruptive” and/or “innovative.” Christensen was so concerned with the transformation the term had taken on that he published a 2015 update in the Harvard Business Review on what the term business disruption really should encompass.
Christensen says that a disruptive business is likely to start by either satisfying the less-demanding customers or creating a market where none existed before. “When mainstream customers start adopting the entrants’ offerings in volume,” he explains, “disruption has occurred.”
One problem with identifying disruptors is that often they need lots of time to make a real impact in their respective fields. Sometimes it can take years for the true effects of disruption to present itself in the market. Additionally, a disruptor’s business model can look completely different than what’s already there, so it can be hard to see a disruptor in its early stages. This is especially true of companies that anticipate social shifts that few others in the industry are aware of.
Most true disruptors aren’t setting out just to be disruptors. Like any other business owner, they’re trying to provide a valuable product or service to their customers. The best disruptors are those who are innovating because they find meaning in their mission. Their business plan is revealed as disruptive only over time as they make their mark, often permanently changing an entire industry. They never really focus on the question “What is disruption?” because they don’t care. They simply want to make a difference.
But because disruptive innovation has become synonymous with progress – and everyone likes progress – many companies attempt to style themselves as “disruptive” right from the get-go. But here’s the secret: not every successful business or product needs to disrupt.
What business disruption is not
Chances are you’ve read or heard the words “disruption” and “Uber” used in the same sentence. Yet according to Christensen’s theory, Uber doesn’t actually fit the true definition of disruption. Why? Because the service provides a direct challenge to taxis – a preexisting market.
Did Uber shift the transportation industry? Yes. But it didn’t truly disrupt it.
Think of it this way: If an idea existed before, it’s likely the business isn’t disruptive. But something like radio or television – those changed the entire entertainment industry and therefore embody business disruption.
What business disruption is
Instead of Uber, think of Netflix. When Netflix started, Blockbuster thought the service seemed insignificant. Why would anyone wait for DVDs to arrive in the mail when they could pick them up at the store? Blockbuster didn’t anticipate where the future of watching movies was going, that streaming would become the next phase of home entertainment, which ultimately led to its downfall. Instead of marketing to the next generation and their preferences, Blockbuster continued to rely on their DVD-renting customers.
When Netflix came to the rental giant to sell their business, Blockbuster declined. If Netflix had started out targeting Blockbuster’s core market, it’s likely Blockbuster would have launched “a vigorous and perhaps successful counterattack,” explains Christensen. But because of the time that disruption requires, Blockbuster didn’t realize it was threatened until Netflix tapped into streaming services, unlocking the brand’s immense profitability. By then it was too late. Today, Netflix is worth billions of dollars and Blockbuster is bankrupt.
Why is disruption so popular?
So what does it matter that Christensen and others think people are using the word disruption incorrectly? For one, a trendy catchphrase makes a deep impact. As Tony Robbins has pointed out, the words we attach to our experience become our experience. Words have a biochemical effect on the body. The minute you use a word like “devastated” you’re going to produce a very different biochemical effect than if you say, “I’m a bit disappointed.”
The same goes for words like “business disruption” or “innovative” – when overused, they lose their meaning and limit how we can think of what makes a successful business. This leads to a homogenization of how we visualize success and, ironically, creates limiting beliefs about what kind of businesses will change the nature of the game.
Yet no one can deny the popularity of business disruption and what the term implies. “Disruptive innovation is a high stakes game, with high risk and potentially high rewards,” explains Alison Coleman in Forbes. “It’s also very difficult to spot the winning disruptive opportunities, especially when disruptive ideas require other players in the ecosystem to acknowledge and embrace the change.”
Who wouldn’t want to change the landscape of the marketplace?
Most entrepreneurs are naturally innovative and most innovators have dreams of changing the world. This is one of the reasons why business disruption is so appealing.
Take virtual reality for example. New innovations have led to the creation of a new market poised to change how we experience everything from sports to education. Skeptical? Listen to Brad Allen, chairman of NextVR, describe his vision of what’s coming and judge for yourself. With innovations like NextVR, consumers can touch, feel and experience events like never before – all from the comfort of their own homes.
To make your business talkably different than the competition, you don’t necessarily have to focus on disruption.
Success vs. disruption
Another way to think about success via innovation comes from Tony’s Business Mastery seminar. As Tony says,
Innovation, what is innovation? It’s not tech. Innovation is any way you find a way to do more for a client than anybody else does.
In fact, if there’s one goal I have for you, it’s fall in love with your client and not with your product or service, because your product or service is going to have to change.
Unless you’re constantly innovating, [and] innovating in a way that customer cares about, you’re going to be in the dust.
But what’s the key?
How can a brand deploy business disruption? Is there a secret to disruptive innovation?
The phrase “disrupt or be disrupted” is a misnomer. In many ways, debating whether or not Tesla Motors or Apple fits the disruptive model or not misses the point. What matters more is turning your customers into lifelong devotees, not trying to make this or that product disruptive.
It’s about finding new and better ways to engage and retain your customers, such as with Artificial Intelligence (AI). Depending on how it’s used, AI might not qualify as business disruption because it’s been heavily utilized for decades. However, whether it’s disruptive or not, it can provide an easy and effective way to connect with your customers and can make your business more successful. When you think of it that way, who cares if it’s business disruption? It’s success, and that is what most business owners strive for.
When you clearly identify the business you’re really in, you’ll be poised to experience incredible growth as you find ways to stand out in a crowded world. By anticipating the changing needs of your customers, innovation and disruption will occur naturally. When you take the focus off of business disruption and put it on solving problems for your customers, you will always head in the right direction.
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