Author Geoff Moore on Disruptive Innovation

Innovation: Scarce/Expensive to Ubiquitous/Cheap

I’m sure that many people have told you, “we’re living in an amazing time.” While this may be an over-used expression, it really is true – especially when you think about how businesses are run. Today, the rise of disruptive innovation continues to change our ability to access more services with greater ease than ever before.

Through the years, we have seen the trickle-down effects of technology becoming more readily available for a wider audience. However, the scale which disruptive innovation in the tech world has impacted our lives is nothing short of remarkable. In other words, services that were once scarce or expensive are now ubiquitous and cheap. To illustrate the effects of disruptive innovation, here are five examples:

1. Cloud Computing.

   • Today, it’s never been easier to automate processes or interactions. Furthermore, the costs for doing so are minuscule compared to the scalability of these solutions. That said, we haven’t figured out how to automate every process. However, the ability to do so at scale has never been easier.

2. Smart Phones.

   • Global connectivity has never been this easy or cost-effective. People on every corner of the globe have access to a mobile device. As a result, we have the ability to communicate with billions of people by reaching into our pockets.

3. Social Networks.

   • These platforms have taken community engagement and collaboration to another level. Most importantly, the scalability and relative cost savings for extraordinary. For example, think about how Uber acquires a new driver. They don’t pay for a driver or their car. In addition, Airbnb doesn’t pay to acquire a new property. In both cases, their business partners emerge organically with virtually no acquisition cost.

4. Data Science.

   • While this is not a free service, the algorithms for collecting data do not carry any costs. As a result, the rise of data innovation will continue to scale the availability of these services. Furthermore, the costs for accessing this data will rapidly decrease and become more readily available to a larger audience.

5. “Internet of Things.”

   • Just as we have seen digital systems optimized with the introduction of disruptive innovation, the same holds true for physical systems. While we are not yet at a point where every system can be digitized for full automation, the realm of possibility for doing so will continue to increase.

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