Disruptive vs Radical Innovation: What's the Difference and How Do You Apply Them?
When it comes to innovation, some companies are better than others. But even the best companies can fall behind if they become complacent. That's why it's so important for businesses to always be striving for new and better ways of doing things.
Of course, this is easier said than done. It can be difficult to come up with new ideas, especially when you're trying to do something that's never been done before. But that's exactly what makes innovation so important.
If a company can't innovate, then it will eventually fall behind its competitors. And in today's economy, that's a death sentence. So if you want your business to succeed, you need to embrace innovation at every turn. I can’t emphasize how important that is, so let me say that again, but in a different way:
Innovation is at the heart of any successful business. Without it, companies can quickly become stale and irrelevant. But not all innovation is created equal. There are two main types: disruptive and radical.
Disruptive innovation is when a company creates a new product or service that completely disrupts the status quo. For example, Zoom has completely disrupted the way we communicate by making video conferencing more accessible and user-friendly. Another great illustration is Airbnb, which disrupted the hotel industry by allowing people to rent out their homes or spare rooms to travelers.
Notice that both Zoom and Airbnb both innovated their business model. This is important to note because it’s not always about coming up with a new product, but sometimes it’s about rethinking the way business is done.
Radical innovation, on the other hand, is when a company creates a new product or service that requires customers to change their behavior in order to use it. This is when a company creates something that is completely new and different. This can be a new product, service, or even a new business model.
A good example of this is Tesla, who created an entirely new category of vehicle with their electric cars. While there are many hybrid and electric cars on the market today, Tesla has been radical in its approach by making electric cars that are stylish, luxurious, and performance-oriented. This has changed the way people think about electric cars and has made them much more popular.
Another great example is SpaceX, who created a whole new way to launch rockets into space by developing reusable rockets.
And yet a third example is the Apple iPhone, combined the functions of a phone, camera, and music player into one device.
As you can see, both types of innovation are important and have the potential to change the world as we know it.
How do you know which type of innovation is right for your business? It depends on your goals and where you are in your lifecycle as a company. Both types of innovation are important, but they require different approaches. Disruptive innovation often happens quickly and unexpectedly, while radical innovation requires a lot of planning and research.
If you’re a startup, you’ll likely need to focus on disruptive innovation in order to survive. This is because startups are typically trying to establish themselves in a market and need to find a way to stand out from the competition. Ask your self these 3 questions to get started:
-What needs to be changed in order for my product or service to be successful?
-How can I create a new product or service that is completely different from what already exists?
-How can I make my product or service more accessible to users?
If you’re an established company, you may want to focus on radical innovation in order to stay ahead of the competition. This is because established companies usually have more resources and can afford to take risks. Additionally, they typically have loyal customers who are willing to try new things. Here are some questions to get you started:
-What new products or services can we create that will require our customers to change their behavior?
-How can we create a new business model that is completely different from what already exists?
-How can we make our product or service more luxurious or performance-oriented?
No matter what type of innovation you’re pursuing, it’s important to remember that all kinds of innovation come from a place where change is needed because of certain challenges. But it’s never ‘one size fits all’. To make it work, innovative ideas need to adapt to the needs and capabilities of a company.
One of the best ways to do this is to encourage a culture of innovation within your organization. This means creating an environment where employees feel comfortable taking risks, experimenting, and pitching new ideas. It’s also important to have systems in place that allow you to quickly test and implement new ideas.
As a revenue strategist and business model designer, I highly recommend supporting the following brands, as they do a fabulous job of supporting your ability to innovate:
Strategyzer: A software tool that helps you validate business ideas and test business models. Obviously I am biased since I am a contributing author in the book "Business Model You", however I ONLY support brands that "walk their talk". Therefore, please invest in every book that Alexander Osterwalder writes. You can thank me later!
MethodKit: A visual language toolkit for innovation, used by startups and Fortune 500 companies worldwide.
Board of Innovation: A consultancy that helps companies with innovation strategy, design thinking, and lean startup.
Strategy Tools: Platform with 30+ strategy tools, used by startups and Fortune 500 companies worldwide.
IDEO: A global design company that takes a human-centered, design-based approach to help organizations in the public and private sectors innovate and grow.
What are your thoughts on disruptive vs radical innovation? What type of innovation is your company focused on? Disruptive or radical? Let us know in the comments below! And be sure to check out our other blog posts for more great content. Thanks for reading!
