January 30, 2018

Why Disruption Matters

We talk so much about disruptive innovation, we sometimes can lose sight of what really matters. The most direct way to say it is:

 

A disruptive innovation really matters when it drives the marginal cost of a previously scarce resource to asymptotically approach zero.

 

Basically it makes it free, and that creates a spiral of demand to take advantage of this new state.

 

Let’s apply this notion to the five truly massive waves of disruption that are under way in our economy at present, working from the most mature – where the “practically free” value proposition is most realized—to the most basic, where it is still more of a projection. The question you want to ask with each disruption is, what impact is this having or going to have on my industry and on my company’s competitive strategy?

 

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