Innovation and disruption in the startup worldBhavik Sarkhedi
Startups are breeding grounds for innovation, especially during the initial days. But it is equally important to understand that innovation must be accompanied by proper structure and order. Disruption should not be an outcome of chaos caused due to innovations.
First, however, we need to comprehend exactly what innovation and disruption mean. Innovation refers to enhancing of existing business models based on customer reviews and feedback. It helps in extending one’s demand and customer count in the market, which is inclusive of earlier products and services. Disruption, on the other hand, refers to creating a market space which is in opposition to earlier marketing strategies.
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Disruptive innovations also help create market spaces which are initially smaller in size, and hence do not interest established firms. Yet these small niches can prove to be revolutionary, taking away considerable market share from established firms in the process. Such firms do not take risks because it is important to maintain proper growth rates and good returns. These firms do not indulge in volatile market spaces.
These spaces left open by larger firms prove to be strategic for smaller firms and startups as well. It helps them build a stable niche for themselves.
Take calculated risks
It is important to first understand the market and then decide what will appeal most to customers. It is only then that bigger, calculated risks work. Such innovations may start out being attractive only to a small group of customers. But with time, such market spaces lead to greater market shift. These may cause leading incumbents to fail as new endeavours displace them.
Elon Musk, who balances opportunities and risks, is known for his disruptive strategies. One may use predictive analysis tools for a better picture as well.
Acquiring talent capable of disruption
One must understand the need for creative minds in a firm. With market spaces being vehemently fought over, one must acquire and retain creative talent. With globalisation and changes in technology, there have been shifts in working demographics as well. Established firms, therefore, are not always sure of driving future growth.
Welcome flexibility in work culture
Flexibility brings in agility at work. It also pacifies employees. If the company allows space to complete one’s personal commitments, it leads to better quality of work. Such environments at work are important in order to push growth.
Moreover, compliance plays a big part in work culture today. The need of compliance arises due to the changing dynamics in the fields of business ethics and cybersecurity. For instance, Uber and Airbnb have learnt to adapt to the changing needs of the business world.
Be open to partnership
Sometimes, it is good to partner with bigger companies. You can offer them disruptive strategies which may help with better growth. It would be a relationship benefiting both parties.
It is a known fact that startups are very good at pointing out better technologies because of their innovative attitude. However, many a time, they lack the means to advertise their ideas. But collaboration helps in a lot of ways. It gives access to expansive knowledge about some products, opens doors to new methods of distribution channels, and also gives access to probable solutions to some problems. This helps in satisfying customers, and at the same time benefits both the startup and the established firm it collaborates with.
Such steps are necessary in order to fuel innovation and disruption. A futuristic approach is of the essence to improve growth rates.