Disrupt vs. Disturb

Source: Pixabay

Moving from the dictionary meaning of disrupting and disturbing, we are focusing on the realm of technology and startups. Though in terms of technology, the term, “disruptive” means something completely different than the dictionary meaning.

The term “disruptive innovation” was first used by Clayton Christensen and it is described as a process in which a product or service evolves from being a simple application to the best available product or service in the market, displacing the competitor companies. One of the notable historic industries that showcased disruptive innovation is Ford with its Model T. Generation of Model T eradicated the horse-drawn carriages from the pictures and is still counted as the one best in business. Forbes dictated 3 ways by which a start-up may disrupt their business in the industry:

1. Presenting a radically new idea: What most of the start-up focus is the improvement of the already existing product and service. A disrupter would engineer a solution that the market did not witness before. If you want to disrupt the market with your business, the underserved population should be your focal aim. For instance, Amazon revolutionized the book-hunting experience of the readers. One no longer needs to wait weeks long for a limited-edition copy.
2. Fluidity and creativity: The top-notch organizations are settled with their rules and culture; they find it difficult to keep molding with the changing interests and needs of the population. The start-up needs to be fluid in this sense and encourage innovative ideas to solve a regular problem uniquely. Code and Theory, a digital-first creative company, talks about the stagnation that occurs due to following the “best practices”. It is just like revising the same old topic and not learning anything new.
3. Combining technology and data: The joint effect of technology and data is capable of disrupting any market effectively. This doesn’t only help in changing the pace of the business, but also keeps account of the customer’s changing interests and needs. For example, technology and data played a huge role in disrupting the market for Netflix. Started with a DVD-by-mail model, Netflix is changing the television experience for the whole generation.

Collage of images curated from Google

Now, on the other hand, disturbing innovation holds the following characteristics as described by Timo Elliott in his Innovation Evangelist podcast with Tom Raftery.

1. Algorithmic addiction: Some of the businesses are standing on the anxiety of their customers to get hold of their algorithm. One of the prominent examples is Instagram. Maximizing engagement is an influential business strategy if it doesn’t prove to be taxing on society.
2. Blind dependence on technology: With all the new features coming up every day, the start-up sectors are becoming more and more engaged with the virtual aspect of the business. Google Virtual Assistant is the most suitable example in this case.
3. Ethics and values: 70% of the business processes can be automated with the right assistance of technology. The AI can check the calendar, fix appointments, and even carry on a conversation “intelligently”. Though AI cannot be credited with the decision-making for your start-up. The invention is not equipped to understand the aftermath of decisions taken. Remember the movie — I, Robot? The robot did not save the little girl from drowning because algorithmically the protagonist beside her had more chances of survival.

The Story of a Horse Drawn Carriage Company

From the early 20th century onward, automobiles started becoming common. Before that, the primary mode of transport was horse-drawn carriages. After the world war, cars started becoming affordable. This disrupted the market of horse-drawn carriages.

Now imagine for a moment that you are the owner of a company that manufactures horse-drawn carriages and your company is threatened by the sudden popularity of automobiles. What would you do? You either try to modernize your company and embrace the changed market dynamics, or you stick with the old product and try to win a lost war.

Ed Klein did the latter. He tried to fight a lost war. In 1915, Ed Klein placed an ad on Lawrence Journal that read -

“Come in and get a new harness instead of a new car and remember that Dobbin will take you through snow and mud as well as on good roads and that his carburetor is never out of order.”

Can you imagine? A newspaper that proclaims that horse drawn vehicles are superior to cars! This is what a radical disruption does. People, no matter how erudite they are, can’t fathom the implication of the new invention.

Source Lawrence Journal-World

The Story of Nokia

Nokia was the king of feature phones back in its prime days. It clocked a worldwide sale of 50 billion Euros in 2008. And then came its downfall. Because in the same year, the first Android smartphone came out. In the previous year the first iPhone was launched as well. And the rest, as they say, is history.

Nokia couldn’t grasp the fact that the mobile phone market was about to be changed radically. Android and iPhone came as dual disruptions. Nokia kept on making feature phones. And when it tried to change by bringing out Symbian based phones and later Windows phones, it was already too late. The Nokia magic was over.

Disruption Vs Disturbance

As of publishing this article, the founder of a so-called disrupting technology is spending her days in the courtroom. Elizabeth Holmes who was once dubbed as the Silicon Valley prodigy came out with a blood testing technology device — Edison back in 2003. Holmes claimed that the technology could draw blood with just a little prick on the finger and then it could diagnose hundreds of ailments. Her company, Theranos soon became the favorite of the investors.

The problem was, the whole thing was a fraud. What Theranos claimed was scientifically impossible. It jeopardized the lives of patients who trusted it. FDA initiated a full-blown investigation on Theranos and Holmes is now being tried for money laundering.

This is a perfect example of a disturbing technology as opposed to a disrupting one. A disturbing innovation does more harm than good even if it appears revolutionary in the beginning.

The digital world has a story of the evolution of its own. Entrepreneurs need to be vigilant about the pros and cons of each process. The startups should manage their steps to decide whether they are going to be disruptive or disturbing.