Is your business in need of a shake-up? Maybe you need disruptive innovation.
DID YOU KNOW: In business theory, disruptive innovation is an innovation that creates a new market and value network and eventually disrupts an existing market and value network, displacing established market-leading firms, products, and alliances. (Source: Wikipedia)
But not all innovations are disruptive, even if they are revolutionary.
So how do you become an industry disruptor and why should you even care?
In this blog, we will explore the importance of innovation within your business and how you can start to differentiate yourself from the sea of others exactly like you for more business success and growth in 2021.
What is a disruptor? And what really is innovation in business?
To understand disruptive innovation, it’s helpful to know what a disrupter is. According to Business Leader news, to be a disrupter is to create a product, service, or way of doing things that displaces the existing market leaders and eventually replaces them at the helm of the sector. (Source: Business Leader News)
According to the Small Business Development Corporation, innovation is the “development and application of ideas that improve the way things are done or what can be achieved. … Innovation can help your business grow by improving productivity and efficiency. Your ability to innovate will also help your business to remain competitive and respond to changes.” (Source: Small Business WA)
Why is innovation important in business?
As a business owner, one of your jobs is to understand that you need to continually change. The world changes every day, and since the pandemic, the world is now a different place. Technology changes too and you never want to get to the point in your business where the service you offer is no longer relevant.
Think about the evolution of VHS > DVDs > Blu Ray > now there is streaming like Netflix, and who knows what else is to come.
There are so many other examples I could share with you. What about the old-school photographs? Once upon a time, you needed to take your film canister to a developer and have your photos developed in hard copies. Now they are all saved on your phone.
The humble wall telephone is just another example. Remember those?
What about Myspace. It was one of the first social networking platforms and was the largest until Facebook overtook it in 2008.
They failed to adapt to change and kept the same structure while Facebook and Twitter were updating and adding new features all the time.
In 2015, Myspace still had over 50 million monthly users. However, compare that to Facebook’s 2.38 billion monthly users and Twitter’s 321 million monthly users, and you can see the effect that failing to adapt to change has had on Myspace.
The new kid on the block on the social media front is Clubhouse. And before that, it was Tik Tok.
How do you think Facebook feels now?! I bet the team is innovating.
The Diffusion of Innovation diagram shows the why, how, and at what rate new technology and ideas are adopted to enable businesses to tailor their product and marketing strategy.
First, there are the Technologists (who are the innovators), then the Early Adopters. Then, there’s a tipping point. Social proof will pull in the Pragmatists who are the early majority, then the Conservatives will get on board as the late majority. Finally, the late mass may or may not come on board as the Skeptics.
When it comes to the Diffusion of Innovation – where do you sit on this scale?
Let’s use Clubhouse as an example. The Technologists and Early Adopters are already on board, using the new platform and singing its praises. The Pragmatists will be next.
Where are you when it comes to Clubhouse?
How to make the changes inside your business to disrupt an industry
Success isn’t overnight. It’s when every day you get a little better than the day before. It all adds up.” – Dwayne “The Rock” Johnson
What those examples of disruption highlight are that change is not easy. When you’re riding the wave of success, or even if you are not, it can be hard to see the need to change.
But what if you only had to make small changes?
Small changes can have an incredible impact on your business.
For example, if you increase your sales by 1% each day for a year, by the end of the year you’d be selling 37.8 times more each day. Put another way, you could double your sales in 70 days by improving by 1% each day.
What would your business look like if you doubled your sales?
What would it look like if you increased sales by 37 times?
Or what your business would look like if you could lift production by 1% consistently or reduce costs by 1% continuously.
What we’re looking to achieve is a continuous and sustained improvement; small changes and not magic bullets.
Now let’s consider what happens if you don’t make those changes. Let’s say your competitors sharpen their game, or you fail to keep track of changes in technology, or you manage your team ineffectively because you’re so busy and your sales start to reduce by 1% each day.
That’s the power of 1%.
How to innovate – what the plan looks like
You know doing nothing is simply not an option. Remember, the definition of insanity is doing the same thing over and over and expecting different results. Do something different.
If you are ready to innovate, this is where you start:
- Knowing your “why”
- Determining your vision and core values for the next 12 months
- Creating a budget, KPIs, and knowing your numbers
- Understanding your target market, ideal client, and value proposition
- Identifying your opportunities, vulnerabilities, and your most critical challenges
- Creating 12-month goals
- Creating a 90-day action plan
Be a disruptor and make the necessary changes for business growth
Business has changed in the last 12 months and many people have had to rethink their business and the way they do things, what they offer, or completely start again.
I know it’s been difficult, I’ve experienced it with you. But being courageous and making the necessary changes now may mean a significantly different future for you and your family.
If you are ready to make the changes required to take your business from stagnant to successful in the next 6 months, join me on my upcoming live webinar: 3 Essential Tools for Business Success.
Inside this 60-minute webinar I’m going to share with you:
1. The power of 1%.
2. Having the courage to change.
3. What the three essential tools for business success are.
4. Examples of the tools needed to help you make the change.
To save your seat, register here