Companies are always looking for new business models to either push the boundaries of the industry, or even just keep up with our ever-changing world. But why is it that some corporations find it so difficult to adapt, evolve, and thrive? It could be because we are living in an increasingly disruptive age where established business models find themselves threatened.
Clayton Christensen devised the term Disruptive Innovation, where newer products or services are rendered at the bottom of the market, and steadily take over traditional models. This idea mostly encompasses businesses that offer services and the production of materials as well as their accessibility to a larger market. However, this thinking can be applied to many different sectors of business.
Marc de Jong agrees that every industry is built around beliefs about how to make money, which are often seen as “fundamental”. These disruptive business models start by taking those crucial, foremost, and valuable beliefs to completely disassemble and re-frame. This process seems daunting. Why would an established business even consider such a renovation of core values that seem to work? This innovation can be extremely difficult, and it can be challenging to truly recognize the possibilities that come out of such revolutionary change.
Take the bitcoin as an example. The model appeared to be completely disputable in its early years, but has since bypassed traditional banks and clearinghouses with its evolving block-chain technology. This is significant because it displays a new wave concept matching a traditional system, and overriding it in the modern age with many consumers valuing it as a viable investment.
Is taking a chance worth tearing down trusted systems in a corporation? Well, if we truly are living in the Disruptive Age, preemptive movement internally may be the only option for exponential success.
By: Jeremy Felder
Dated: June 17, 2018
About: Jeremy Felder holds a Master’s Degree from Tiffin University and is the Chief Compliance and Operations Officer at Chase Receivables in Fairfield, New Jersey. He is a member of ACA International (ACA) and is certified and credentialed by the ACA as a CCCO, PCS and ACA International Scholar. Jeremy also holds a Board position as the Vice President, Office of Project Management, for S4 Infinity – an international non-profit organization.