While giving a pseudo-explanation for the “physics” behind our last video post, a new tongue-in-cheek demonstration is provided that launches a brief discussion of disruptive innovation and the role that intellectual assets can play. The physical demonstrations occurs in the first 4 minutes, then there are 3 minutes of further discussion. (Sorry about the lighting – my hair isn’t that dark!)
Disruptive innovation involves a product or service that motivates the established incumbents to ignore it or flea to higher ground by focusing on high-end customers. The disruptive innovation tends to be “worse” in some way and initially only attractive to non-users or low-end users of the existing technology, so it is not perceived as a serious threat nor does it cause serious pain as it gets a foothold. The disruptive innovation tends to lack the bells and whistles of existing offerings, but provides new dimensions of convenience, low-cost, easy access, etc., that are not key features being sought by the incumbents. But once the easily-ignored “worse” disruptive innovation gets established, it can, through successive sustaining innovations, reach an increasing large portion of the market and eventually cause direct pain to the incumbents. By the time they feel the pain and recognize the threat, it may be too late because they have not developed the new skills, supply chains, or infrastructures needed to compete effectively. Toast.
The problem with disruptive innovation is that established companies, especially large companies, have filters in place that tend to kill it. The opportunity is too small, not aligned with their core competencies, not aligned with what existing customers are asking for, etc. So it is killed or ignored, whether it comes from internal innovators or external innovators.
In our chapter on disruptive intellectual assets, we explain how a low-cost intellectual asset strategy can be used to overcome the known problems in responding to disruptive innovations. By pursuing these intellectual assets at an early stage in the name of mitigating external risk, you can actually lay a foundation for later products or services of your own when the corporation realizes the importance of the opportunity. Without the intellectual asset foundation, it would normally be too late. An aggressive intellectual asset team can make a huge difference in protecting a company and lying a foundation for future success.
From YouTube.com/magicinnovation (Jeff Lindsay’s Magic Innovation channel): “Salt from Water: Getting Granular with Disruptive Innovation.” Recorded in Appleton, Wisconsin. All rights reserved.