Disruptive innovation is innovation that disrupts an existing market and creates a new one. All industries are subject to change. And people will hang on to the status quo as long as possible. Society in general often feels threatened by the disruption of the status quo. But if you are able to look into the future and roll with it, you will be able to spot and profit from opportunities others will miss.
I was watching a segment on self-driving cars and how that will change everything else. For one thing there will be fewer accidents. Which is a good thing. There will be fewer people in the hospital. Which is also a good thing. Fewer patients means less money for hospitals. I’m not debating the ethics of self-driving cars, just saying changes in one industry disrupts another.
Since there will be fewer accidents, auto insurance premiums will be lower and insurance companies will be scrambling for business. Some will even go out of business. So, it’s a good thing that premiums will be lower, but bad for the bottom line of auto insurance companies.
If self-driving cars never or rarely get into accidents, that means the cars would last much longer. Good for consumers, but bad for the car companies, who would be selling tons of self-driving cars in the beginning, but then people would be keeping them much longer.
I can think of some great things that will come out of this disruptive innovation. One is that you would never get lost. And because everything would be skillfully coordinated, there would be far fewer traffic jams.
I would love the idea of being able to check email and write blog posts while my Nissan Altima guided me safely to my destination. I’m already thinking of all the movies and TV shows I could catch up on while heading down the 405 freeway.
I know it’s easy to be nostalgic and cling to the familiar. But if you want to make money, look into your crystal ball and spot those innovative opportunities while others are still stuck in the present.