Does your business model require significant interaction with societal infrastructure? Might it cause Unpredictable Disruption instead of useful disruption?
Unpredictable Disruption
Business models whose innovation opens up the potential for Unpredictable Disruption include:
- Some taxi-like business models have experienced contentious interaction with city regulations concerning taxicabs. This can have an impact on the company’s ability to do business in a city. One example is “The fight over Uber exposes deep divides in the Democratic party” by Nicholas Riccardi, Associated Press on July 25, 2015
- Some medical diagnostic smartphone based Apps have been criticised for how they recommend visits to Doctors. Thus software is involved in the decision of when to see a medical Doctor. Perhaps great innovation; but touches on decisions that some think only Doctors should make. Please see “Apps, sites can’t replace your doctor” by pdated July 20, 2015 Bebinger reports that a “Harvard Medical School study that reviewed 23 sites, such as WebMD, the Mayo Clinic and DocResponse. One third listed the correct diagnosis as the first option for patients. Half the sites had the right diagnosis among their top three results, and 58 percent listed it in their top 20 suggestions.”
Useful Disruption
Useful Market Disruption is caused by new offerings that better serve customers, grow revenue for the vendor and do not create tedious litigation or regulatory problems.
Conclusion For New Ventures
It is desirable for new offerings to create Useful Disruption Versus Unpredictable Disruption. But not desirable to be so disruptive that customers/investors/stakeholders are uncomfortable due to the possibility of Unpredictable Disruption.
One part of a new venture’s strategic planning must be to check your business model to assess the positive and negative potential for Unpredictable Disruption:
- Does execution of your business model result in interaction with societal infrastructure in a manner that produces Unpredictable Disruption?
- If so how might you manage to create Useful Disruption Versus Unpredictable Disruption?
Conclusion For Established Corporations
Established corporations should perform periodic reviews to determine how exposed their existing products are to disruption from such new offerings. Such reviews should address:
- Barriers to creation of competitive offerings
- Strategies to migrate existing offerings to stronger positions from a competitive perspective
- Cost – Benefit issues of Useful Disruption Versus Unpredictable Disruption
Carverlon Ltd and our business partners are available to assist in such reviews. Please Contact Us
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