Use instead of own: Spotify Netflix

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The strongly digitally oriented newcomers not only know how to offer a lot of added value, they also use disruptive business models and in doing so they change the rules of the game. Some examples:


Freemium: Skype
Peer-to-peer commerce: AirBnB, CampusBookRentals
Creativity of the crowd: threadless.com
Mass personalization: chocstar.nl, shirtbyhand.nl
Big Bang disruption
Given the enormous speed at which a digital innovation penetrates a market, the phenomenon is also called Big Bang disruption . According to Downes and Nunes, digital disruption does not follow the pattern of a normal adoption curve. Instead of a product slowly gaining popularity in five market segments in succession, digital disruption only has two: test users and the vast majority. Moreover, the curve is much steeper.

Digital Disruption Adoption Curve

The innovator's dilemma
That young innovative companies drive their south korea phone data predecessors out of the market is not new. In 1937, economist Joseph Schumpeter described how new companies continuously drive established companies out of the market by innovating better than their predecessors. He called this creative destruction. Schumpeter sees technical innovation as the only real source of economic growth.

the innovators dilemmaClayton Christensen analyzed a large number of companies in the late 1990s and came to the same conclusion in his book The Innovator's Dilemma . Established companies rarely seem to be able to respond adequately to groundbreaking innovations. This is due to the corporate culture, silos within the organization and the strong focus on serving existing customers. Successful companies place too much emphasis on serving current customer needs and too little on unspoken future needs. They are also not open to new business models, because these often cannibalize their existing business. In addition, the established order tends to look down on unconventional newcomers who rarely adhere to the written and unwritten etiquette of the industry. By underestimating them, newcomers are given the time to fully mature.