In the Market failure is failure to innovate.
Innovation is simply the basis of Business: it is the essence of Human progress. Progress exists, in fact, thanks to it is a natural instinct of man to improve his life.
From the Market point of view this drive to progress is the Demand of Customers.
So the success of a Company derives from its ability to innovate: that is, on the ability to offer – compared to the Competitors – a better satisfaction of the needs of the Demand.
<see Introduction to the Disruptive Innovation: the concept of Innovation [1] >
The established companies
TODAY THEY CANNOT
TO TUNE WITH THE EVOLUTION OF DEMAND
The origin of the failures: the transgression of the Market Principles
The problem comes from a transgression of the Business towards the Market Principles:
Modern Marketing has thought of
able to circumvent the Supply & Demand law
“inventing” purchase reasons for products that are unable to meet people’s real needs.
<see Business problems: the difference between original and current Marketing>
The failures derive from the fact that
MOST SUCCESSFUL COMPANIES
ARE NOT REAL INNOVATORS
Or the strategies of the established companies derive from a fatal misundersstanding: they expect to develop functional strategies for the nascent Market (disrutpive strategies) but in reality they continue to develop the strategies of the Market in decline.
<see Be careful: most successful companies are not real innovators (disruptive innovators)>
Essentially the Executive level is not aware of the qualities required by the new Demand today [Managers don’t know they don’t know what they are doing].
.
And they are not aware of the fact that the (radical) change of mindset, business structure and product is not an option.
Above all, the problem is relying on an obsolete Culture. According to it the Incumbents
EVALUATE IN NEW REALITY
WITH OBSOLETE CULTURAL INSTRUMENTS.
AND THEREFORE DEVELOP INCORRECT STRATEGIES.
That is, the Incumbents are published by the false concepts of Disruptive innovation.
<see The basic misunderstanding on Real (Disruptive) Innovation>
<see There is no “Culture of Disruptive innovation”, but an Aptitude for innovation>
The barriers to change: the impossibility for companies to change
The difficulty of the change stems from the fact that the established companies were born in a phase in which the current rules of the new Market were an impediment to the Business. And therefore they
have developed a Culture,
a mindset that turns out to be
a barrier to these rules.
<see The Company Immune System: why the big Companies cannot develop real innovation >
The problem is widespread due to the fact that today the Companies, the School, the Business Consulting, the Media and the Institutions continue to develop a wrong culture, and this produces disastrous results.
<See °The misunderstanding on Innovation by Manager, Consultants and Pundits >
<see Disruptive Business Consulting [1] – How disruptive Business Consulting changes >
This is what the established companies must understand, it is the essence of Disrutpive innovation (the form of innovation that Demand cannot do without):
THE DISRUPTIVE INNOVATION
IT IS SUBSTANTIALLY INCOMPATIBLE WITH
PRINCIPLES AND RULES OF THE MARKET IN DECLINE.
In other words, when using Disruptive innovation elements in a strategy, if only a few elements of Sustaining Innovation are inserted into it, conditions are created for this strategy to be a failure.
see The failure of Hybrid innovation (Disruptive + Sustaining Innovation)>
See “Comparative Table of Keypoints of Disrutpive/Sustaining Innovation” in which you find a synopsis of the Keypoints of both forms of Innovation.
A significant example of this: practically all the products that Google has tried to launch on the market have failed (from Glass and Nexus smartphones to Hangouts and Picasa).
Another example in Are the Autonomous Vehicles really disruptive?
It is therefore necessary to learn
to distinguish the Models, the Principles
on which the Companies that currently hold dominant positions
are based.
To this end, the “Guideline for an analysis of Business innovation” is born: a series of documents aimed at a diagnostic assessments of Business innovation capacity. In other words, it is a tool designed to highlight how effectively a business is a form of Disrutpive Innovation (functional to the nascent market), or if instead it encompasses elements that conflict with Disrutpive Innovation (that is, whether this business has the seed in its foundation of failure).
The Guideline Articles illustrate a series of fundamental Keypoints of the two forms of Disruptive and Sustaining Innovation that allow the analysis of Business Plans (or, more generally, business cases).
In particular, we highlight the Comparative Table of Keypoints of Disrutpive/Sustaining Innovation, a summary table of the fundamental elements of the two forms of Innovation. <see Comparative Table of Keypoints of Disrutpive/Sustaining Innovation >
