Start-ups, innovative disruption and other big ideas
Start-ups are young organisations engaging in new technologies that can cause disruptive innovation. These organisations have the capacity to upset existing market structures on the basis of new technologies. By targeting openings in the market afforded by new technologies, they are capable of replacing existing incumbents. However, start-ups are also at a greater risk of failure given the many uncertainties they face.
Many start-ups are forced to revaluate their business model in order to be viable. Thus business model innovation is particular important, because these young organisations lack legitimacy, resources, and experience. Thus, achieving the right fit in terms of value proposition and value exploitation is of the utmost importance. Therefore, Ries suggests the lean start-up method, whereby start-ups commence with a minimum viable product at first and then pivot the product until it satisfies customer requirements.
One new technology that is emerging is augmented reality. Computer-generated content is displayed over the real world. This then allows the rendition of a digital layer in the real world. Although this technology is still in its infancy, experts predict that AR will have an enormous impact on communication. Given the need for mobility and availability in the modern world, speakers will be able to convene in digital rooms and engage with each other digitally. The impact on the world of work and education will be immense. Physical barriers of distance will be overcome and unthinkable levels of information will be readily available. It is nothing short of a Foucauldian paradigm shift and will herald a new era for mankind.
However, as such AR has not yet fully availed itself and industry experts are yearning for the “killer app”. Experts believe, that given the infancy of the technology, no successful businesses models have been designed so far. Instead the technology is employed as an added extra, e.g. Instagram filters. Yet the introduction of ARKit by Apple in 2017 and the upcoming introduction of AR + Play will most likely change this. More businesses will embrace the technology over time.
Although there are many technical issues that still need to be sorted out, such as the introduction of 5G networks, allowing greater latency and download speeds to cope with the data flow, and AR clouds, to represent the digital world and allow anchor points for AR apps, the change is imminent. This new technology is then an opening for disruptive innovation by addressing market shares, which have been ignored by the respective incumbents.
Business models are needed to focus on the capture and creation of value. Given the infancy of the technology, it will take visionary entrepreneurs to shape our future. Only with a clear vision of the future will start-ups be able make gains on the market. Our research has shown that collaboration is a key in order to create synergies. In particular young organisations need to find partners to shape the unknown. Through partnerships these organisations then stand a chance of survival.
Find out more about the technological aspects of AR start-ups here.
