If you want to make disruption, you must be willing to destroy your own product constantly and address changes in your customer's needs. Because if not you do it, someone else will.
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The proof that every traditional business can do disruptive innovation is Netflix . In 1997, Reed Hastings was fined $ 40 for not returning the Apollo 13 movie on time at a Blockbuster location . So we decided to create a film rental company with a platform for video delivery online and by mail, with a monthly fee for unlimited income.
After he eliminated the cost of physical stores by taking advantage of streaming technology, he acquired recognized series to distribute on his channel. And in 2011 he started with his first production House of Cards . Netflix currently has 83.2 million paid subscribers worldwide, who consume 125 million hours of content every day. Its capitalization value is US $ 54,291 million.
Change the rules
The disruption is the “irreversible alteration of the rules under which one competes in a market or industry,” explains Salvador Aragón, CEO of Innovation at IE Business School. This change can occur through creating a new market, category or product that replaces the existing one.
Some attribute the term disruptive innovation to Clayton Christensen of Harvard University in 1995. However, Luis Arnal, of the innovation consultancy Insitum, says its origin comes from the concept of creative destruction by Joseph Schumpeter in 1942.
Creative destruction is the replacement of a current product with a more convenient, practical, valuable and fast one, using a technology that did not exist before. As Netflix did, it constantly destroyed its own product not only using technology, but focusing “on changing the needs and preferences of customers,” explains Arnal.
Startups to the rescue
“ Startups are characterized by finding and taking advantage of market anomalies. Once they are detected, they offer solutions, with a better service at low cost and then take away the market from large companies, ”says Luis Arturo Márquez of EGADE Business School.
The disruption market is small in Latin America and Mexico. Therefore, large companies seek to ally with startups that are closer to customers and better serve their needs. That is where there is a great opportunity for those who undertake.
How to make disruption
To make traditional business disruption, as some startups now do, experts advise:
1. Focus on changes in your client's needs.
2. Think about how you can save time and work.
3. Follow the trends in technology.