In today’s competitive and dynamic business environment, it is mandatory to have disruptive innovation capability or capabilities both for growing a business and protecting existing markets. Yet delivering disruptive innovation needs new mindsets and behaviors for organization leaders and the organizations they lead.
This article describes how to use the COBIT® 5 framework to deliver disruptive innovation.
What Is Disruptive Innovation?
Disruptive innovation[i] describes a process whereby a smaller organization (entrant) with fewer resources is able to successfully challenge an established, successful competitor (incumbent) (figure 1). Specifically, as the large organization focuses on improving its products/services for its most demanding (and, usually,most profitable) customers, it exceeds the needs of some segments and ignores the needs of others. The entrant begins by successfully targeting those overlooked segments, gaining a foothold by delivering more suitable functionality, frequently at a lower price. For example, with Google Apps, Google challenged conventional word processing, calendaring and spreadsheet programs. By focusing on simplicity, effectiveness, collaboration and the cloud,it has created an industry for online integrated document sharing.