All businesses that have ever existed always start out with some form of idea that is turned into a physical product or service later on. Without some spark of creativity in a business, there is no way that a company can last more than 5 years. This is why any entrepreneur that wants to have a successful business first has to start with an excellent business plan and a good solid idea.
Entrepreneurs also need to be absolutely sure is going to bring society something that is very valuable before they invest all their time and money into the business. Unfortunately, some companies in the past have created a business with a product or service, but it turned out that what they had to offer was not that important or beneficial to their customers. Most of the time, this particular problem of a company having a lack of value comes from missing good disruptive innovation. There are thousands of reasons why a business could be failing, but not having disruptive innovation can play a huge part of it. Here's why having a good idea of what disruptive Innovation is can be very essential in doing business and how to use it to your advantage:
First, It Is Important To Learn Business Terms as an Entrepreneur
One of the biggest reasons why 50% of all businesses fail their first five years according to fundera.com is because of a lack of business knowledge. Even though some businesses still have failed even with previous business experience and skills, the chances of your business not making it is 50% more likely without the knowledge and training to start. Many people when they first began a company have skipped learning business terms and went straight into the business making part. But unless you're someone like Clayton M. Christensen that knows every single topic covering business, then you're better off getting some business knowledge first, especially when it comes to knowing disruptive Innovation.
What is Disruptive Innovation and Why Is It Important?
The first and one of the most important business terms that every business needs to know in order to stay steadfast in the industry is disruptive innovation. Although Disruptive Innovation sounds like it has a negative meaning, it actually has a good and helpful meaning towards any business that is wanting to be successful. Destructive Innovation basically means that some sort of technology, invention or idea comes into the industry and almost completely changes how all industries do business. A good example of this is the internet, and by now, everyone knows that all industries today use the internet in some way to do business. The reason why disruptive innovation is so important is because it will determine how well you do in business terms. Any company that does not pay attention to what is causing disruptive innovation will most likely be impacted negatively later. Unfortunately, this same exact thing happened to companies that refused to incorporate the use of the internet into their business practices such as an online websites, in-store credit card payment methods and allowing people to place orders online.
How To Apply Disruptive Innovation to Your Business Practices
Fortunately for new entrepreneurs today wanting to get a good education about business, they can do so by reading or researching valuable advice from other business people such as Clayton Christensen. If you're really interested in knowing more about destructive Innovation and how it works, Christensen wrote an entire book on it in 1997 it was called “The Innovator's Solution” which had a tremendous impact on how some entrepreneurs did business and made them very successful till this day.
Paying close attention in the industry and jumping onto the newest disruptive innovation is going to give you a tremendous lead in becoming successful.