How to manage for disruptive innovation?
This week we’ve talked about how companies that are small in size are able to compete with bigger companies due to disruptive innovation. A compelling way to make sure that your company stays on top of disruptive innovation is to follow a very interesting 5 step process that I’ve came across in an article I read.
- Identify your company’s key markets. It is a good idea to access whether the market that your company competes in is going to be positively impacted or negatively impacted by the disruptive innovation so that you can properly manage the situation at hand before it’s too late.
- Identify priority markets. This will help you redefine your market segments and adjust segmentation criteria to suit your company’s needs.
- Analyze industry structure. Utilize Porter’s 5 forces to gain a good understanding of any options and opportunities that are out there.
- Identify what makes each player powerful. The best way to learn how to be the best is to learn from the best.
- Hypothesize on ways to disrupt the status quo. Collect ideas on what can be the next big thing and launch an innovation project for the ideas that seem the most feasible.
What are your thoughts regarding this approach? Do you think that companies that are the most successful regarding disruptive innovation follow this approach? Are there any steps missing or incomplete?