In my book “Surviving Disruption: 12 Unique Innovation Strategies to Create Your Ultimate Competitive Advantage” I talk about how there will always be disruption of your business. It could be the weather, bad business partners, technology, changing customer tastes, or any number of things. You have to be able to look into the future and do everything you can to prevent it. Not all disruption is bad. It can be a powerful catalyst for innovation, growth, and competitive advantage. Companies that embrace disruption rather than resist it position themselves for long-term success.
Disruption Sparks Innovation
One of the most significant advantages of disruption is its ability to drive innovation. When an industry is disrupted, businesses are forced to rethink their strategies, products, and services. This necessity to adapt often leads to groundbreaking ideas and technologies that would not have emerged under normal circumstances.
A good example is Netflix. Before streaming services, video rental stores like Blockbuster dominated the market. When Netflix introduced its DVD-by-mail service, it was a minor disruption. However, when it pivoted to streaming, it completely transformed the way people consumed media. This shift forced competitors to innovate, leading to the rise of countless streaming platforms and a redefinition of home entertainment.
Disruption forces companies to get creative, leading to advancements that benefit consumers, drive economic growth, and keep businesses at the cutting edge.
Encourages Agility and Adaptability
As an innovation keynote speaker I will often hear “That’s the way we’ve always done it.” And when I ask why, they usually don’t know. Change isn’t always easy. But if you wait until your business is totally disrupted you may not even stand a chance.
In a world where technology and consumer tastes evolve rapidly, businesses must remain agile. Companies that are too rigid in their approach often struggle to survive when new trends emerge. Disruption forces businesses to be more adaptable, encouraging them to continuously evaluate and improve their offerings.
An example is Domino’s Pizza and its turnaround in the early 2010s. By the late 2000s, Domino’s was struggling. Customers criticized the taste of the pizza, and its reputation suffered. In 2009, a consumer survey ranked Domino’s pizza as one of the worst in the industry. Meanwhile, competition from fast-casual pizza chains and third-party delivery services (like Uber Eats) was growing.
Instead of ignoring the criticism, Domino’s reinvented itself by publicly admitting that their pizza needed improvement. They then promised a better recipe and redesigned it from scratch based on customer feedback. Then they focused on delivery time of 30 minutes or less. They redesigned their stores so people could see the pizzas being made. And incorporated digital into their sales.
After acknowledging the disruption they became more agile and eventually overtook Pizza Hut to become the #1 chain in the US. Agility isn’t just about product. It’s about adapting to how customers want to interact with your brand.
Businesses that embrace change as a constant and see disruption as an opportunity rather than a threat position themselves for long-term success.
Creates New Market Opportunities
Disruption often leads to the emergence of new markets and customer segments. When a disruptive innovation reshapes an industry, it often unveils unmet consumer needs, creating opportunities for businesses to capitalize on these gaps.
Think about the rise of Airbnb. Before Airbnb, travelers primarily relied on hotels for accommodations. By disrupting the hospitality industry, Airbnb created a new market where homeowners and renters could monetize their spaces. This disruption not only benefited travelers looking for unique lodging options but also opened up income streams for millions of property owners worldwide.
Companies that recognize and seize new opportunities created by disruption can carve out lucrative market niches and gain a competitive advantage.
Drives Competitive Advantage
I also speak on competitive advantage, which every business should take seriously. Your business needs to go through an audit every few months to make sure you are constantly innovating and staying true to your ultimate competitive advantage. This is how you can level the playing field and compete with the big guys. They will always have more money than you, but you can have more creativity.
Like fintech startups, for example. Traditional banks, with their cumbersome bureaucracies and outdated technology, once had a monopoly on financial services. However, the rise of fintech companies like Square, Stripe, and Robinhood disrupted the financial industry by offering more accessible, user-friendly, and cost-effective alternatives. Today, even legacy banks are adopting fintech innovations to remain competitive.
For businesses, disruption presents an opportunity to differentiate by offering superior products, better customer experiences, or more efficient business models. If you don’t have a competitive advantage you are just another commodity. Stay ahead of disruption and use it in your favor to create your ultimate competitive advantage.
Enhances Customer Experience
At its core, disruption is often driven by changing customer expectations. Businesses that successfully navigate disruption do so by prioritizing customer needs and delivering improved experiences.
Uber transformed the transportation industry. Before Uber, taxis operated under a rigid, often inefficient system with inconsistent pricing and availability. Uber disrupted this model by introducing app-based ride-hailing with transparent pricing, convenience, and better service. As a result, traditional taxi companies had to evolve to remain competitive.
Businesses that embrace disruption by focusing on customer-centric innovations build stronger relationships, increase brand loyalty, and ensure long-term success.
Leads to Economic Growth and Job Creation
While disruption can sometimes result in job displacement in the short term, it ultimately drives economic growth by creating new industries and employment opportunities.
For example, the rise of e-commerce has disrupted traditional retail, leading to store closures and job losses in brick-and-mortar locations. However, it has also created millions of new jobs in logistics, warehousing, digital marketing, and software development. Amazon alone has generated hundreds of thousands of jobs worldwide due to its disruptive business model.
As industries evolve, new roles and skill sets emerge. This is especially true when it comes to AI. Studies suggest that up to 30% of jobs in the US will be impacted by AI. But AI will also make many more jobs more efficient. Luckily speakers will probably not be put out of a job by robots. But then again, there is Sophia, the robot speaker.
Prevents Complacency and Stagnation
I always give the example of the newspaper industry as one that thought they could rest on their laurels and not change. They thought they had no competition in advertising… until Craig’s List came along and gave away free ads. And that took away 30% of their revenue overnight.
Companies that operate without significant competition or disruption often become complacent, leading to stagnation in innovation and service quality. Disruption challenges the status quo and forces businesses to continuously improve.
An example of a company that failed to pay attention to disruption is Kodak. Despite inventing the first digital camera, Kodak failed to embrace digital photography because it was too invested in its film business. As digital cameras disrupted the industry, Kodak lost relevance and eventually filed for bankruptcy. In contrast, companies that proactively disrupt themselves, like Apple, which continually innovates its product line, remain industry leaders.
Disruption keeps businesses on their toes, ensuring they evolve rather than become obsolete.
Empowers Small Businesses and Entrepreneurs
Disruptive technologies and business models lower barriers to entry, allowing startups and small businesses to challenge industry giants. This democratization of business fosters innovation and healthy competition.
For example, Shopify disrupted the e-commerce industry by enabling small businesses to set up online stores with minimal technical expertise. This platform has empowered millions of entrepreneurs worldwide to launch and scale their businesses without relying on traditional retail infrastructure. I’m a Shopify customer and they make it simple for someone like me to sell my products all over the world.
By making industries more accessible, disruption creates opportunities for new players to thrive.
Embracing Disruption for Long-Term Success
While disruption can be intimidating, businesses that embrace it rather than resist it can unlock incredible opportunities. Whether through innovation, improved customer experiences, or new market creation, disruption is ultimately a force for progress. Companies that stay adaptable, challenge traditional thinking, and continuously innovate will not only survive but thrive in an era of constant change.
Rather than fearing disruption, businesses should cultivate a culture of agility and forward-thinking. Those that do will be the ones shaping the future rather than being left behind by it.
If your business needs a keynote speaker to guide you in how to create your ultimate advantage through innovation please contact award-winning inventor Julie Austin.