Understanding the Benefits of Disruptive Innovation

Innovation is at the heart of human civilization. Every part of the world we live in was once a disruptive innovation, from the wheel to the smartphone to the drive-thru, and it’s by no means done. If anything, advances in digital technology have rapidly sped up the pace of disruption, and new ideas are constantly challenging established industries and business practices.

Disruptive innovation is any new technology or process that changes industries in irreversible ways. The term itself was coined in 1995 in the Harvard Business Review as a new way of thinking about growth driven by innovation, and it was quickly adopted by entrepreneurs and business leaders.

Disruption theory has become so widespread that the language has been adopted by just about everyone, and some of the meaning has been lost and diluted. Too often, business leaders try to pass off entrepreneurial success itself as disruptive.

What Does Disruption Really Look Like?

True disruption happens when an innovator dramatically changes the way a market operates. They may shift consumer behavior or apply a new technology in a way that satisfies changing expectations. They may create a new process or method that increases a business’s efficiency or offer a brand-new type of product.

They may create new markets that never existed, or they can radically change well-established markets by offering a vastly superior product that quickly attracts consumers and market share.

Disruptions That Challenge the Establishment

Changing established markets is one of the toughest forms of innovation because there can be so much money and vested interest in keeping things the same. But when a maverick introduces an innovation that puts power back in the hands of consumers, they’re going to attract both attention and market share.

That’s what happened with Nobul, a new digital marketplace that’s challenging the real estate industry. The platform connects real estate agents with consumers, but it gives consumers more information and power than ever before. The platform was designed to put real estate agents in competition with one another and put downward pressure on fees that no longer reflect the actual job.

According to industry maverick and inventor, Founder and CEO Regan McGee, “We built a marketplace where realtors compete for buyers and sellers. We are very much believers in the free market, and on our platform, we have thousands of different brokers from thousands of different brokerages. If you’re looking to buy yourself real estate, they compete for your business on our platform.”

New Disruptions Creating New Markets

The other form of disruptive innovation is creating markets where none existed before. These innovations have become more common with the rise of digital technology. Look no further than smartphones and the market for mobile apps. The mobile app market continues to grow at a rapid speed, and none of it would have been possible without the invention of the smartphone.

Where before the cellphone was primarily used for calls and SMS, today, phones are a hub for communications, banking, gaming, shopping, and all our entertainment needs.

Disruptive innovation pushes boundaries and has the power to change the world.