As we noted yesterday, “In business, a disruptive innovation is an innovation that creates a new market and value network. And it eventually disrupts an existing market and value network. Thus, it displaces established market-leading firms, products, and alliances.” Today, Being an Industry Disrupter – Part Two.
Being an Industry Disrupter – Part Two
Recently, Zandi Brehmer and Below, we highlight three key areas of their research.
Understanding Renovation, Innovation, and Disruption
“The main purpose of renovation is to re-establish the brand within the category. This ensures relevance in the minds of consumers and protecting or stealing share from competitors. In this case, we often see incremental gains. But, they can have a huge impact on sales and brand share. Renovation strategies include re-staging pricing and launching new pack sizes.”
“More transformational than renovation, innovation leads to the creation of new sub-categories. Also, it brings new consumers to the category. Innovation strategies include introducing distinct new formats and creating new consumer sub-segments.”
“True disruption goes a step further. It leads to the creation of entirely new categories or markets. For a company to disrupt, it must focus on four areas. Re-conceptualizing the market,. Consumer-centricity. Engagement. And leading fearlessly.”
How Companies Renovate, Innovate, and Disrupt
“Leaders harness megatrends to disrupt a market. Thus, it is more difficult to keep up with competitors as technology spurs the rate of and access to innovation. Amidst this change, it is hard for companies to understand why industries are evolving as they are today,. Much less predict how they will evolve into the future. Megatrend analysis allows companies to build a long-term strategy that is proactive, rather than reactive. This makes sense of where they stand today. But, it also ensures they have a plan to remain relevant moving forward.”
“To identify and execute successful renovation, innovation, and disruption ideas, companies must constantly focus on the key drivers. As well as the influencers of the business. The most successful companies simultaneously go deeper in getting to know their consumers, and wider in seeking inspiration from adjacent industries and categories. Why? To find opportunities for growth, even in areas where growth appears impossible.”