Disruptive innovation is different from disruptive technology.
 

Not only do the two differ in wording, there is also a stark difference between using technology to create disruption and using a technology that itself is disruptive.
 

Since the mid-1990s when Clayton Christensen, Kim B. Clark Professor of Business Administration at Harvard Business School, first coined the term ‘disruptive innovation’, much has been talked about the theory, its use cases and the misconceptions that surround it. As an idea and a scientific theory, it is nuanced and evolving, necessitating businesses to keenly observe and develop a comprehensive understanding of its core idea, in order to implement it effectively.
 

In a quest to master creating disruption through technology, here are three lesser-known aspects of disruptive innovation that I’ve encountered:

1. A cheaper version of the existing technology? It is NOT!

While affordability could be a consumer demand, developing a cheaper version does not fall into the category of disruptive innovation. Companies that spend time and efforts on simply coming up with easier-to-make and economical-to-sell products are not truly disrupting or even innovating. Working with a cost-saving mindset, these companies might be missing out on their customers’ needs, who may have different expectations about their products or services.
 

2. It’s born on the margins and doesn’t compete with existing businesses

Being on the margins allows brands to see the least profitable customers whose needs are not being catered to. When OTT platforms started, they focused on the small group of customers who wanted to consume content more ‘instantaneously’. Theirs was a business started on the margins, not meant to overtake but serve another audience that grew from a niche to a mainstream.
 

3. It takes time to grow and succeed

It’s imperative to realise that truly disruptive and innovative solutions take time to grow, become large and profit-making. Devising strategies for developing and marketing products and services could consume more time than well-established competitors, but disruptive innovation is a process, not an idea.

Affordability, accessibility and attainability are the three A’s that innovation needs to address. Simplifying the existing creations with innovation is what validates disruption. Over and above designing a business model driven by innovation, complemented by a robust network of stakeholders who equally benefit from the outcome, innovating to create ‘positive disruption’ that leaves a ‘sustainable impact’ is equally critical.

At CRISIL, our pursuit of excellence drives us to learn more about the intricacies of this phenomenon that enables us to add value to the existing market trends. As we continue to grow in the field of ratings, analytics and technology-oriented solutions, it’s even more critical for us to understand the various ways in which innovations can occur. We have consistently made efforts to create a workplace with talent that gives us a competitive edge over our competitors. Our efforts in the direction of adding value to the markets as well as our stakeholders, continue.