radical-vs-disruptive-innovation-what-they-mean-for-organizations

Disruptive innovation, is not something new, it is roughly hundreds of years old, but it has only been studied in the past couple of decades.

Take the spice trade for instance, at one point spices were more valuable than gold, so prized were they in making not-so-fresh meat palatable.

Ice then replaced spice, with advances in insulation ending the spice trade.

None in the ice business saw refrigeration coming, or at least none bothered to transition to this new technology. The result? Disruption.

We need to be careful about using those two words together, because innovation and disruption are not the same.

Innovation is making existing things better, and big companies are generally very good at that.

Disruption is when you do new things that make old things obsolete.

As for what will disrupt the refrigeration industry? I’m not sure, maybe drone delivery.

There is also a different between disruptive technology and disruptive innovation, the  two are often used interchangeably, however they not necessarily the same.

Disruptive technologies includes the fourth industrial revolution tools such as AI, 3D printing, virtual reality etc.

Disruptive innovation refers to a model that is disruptive, for example Capitec bank model of lower rates, longer banking hours, accessibility of location etc.

Disruptive technologies may lead to disruptive innovation, but disruptive innovation may exist without disruptive technologies.

MPESA is a great example of a disruptive technology that led to disruptive innovation.

Going forward it is going to be difficult for disruptive models to exist without disruptive technologies.

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