What is Digital Disruption?
Digital Disruption describes the radical change of markets and business models through digitalization. It is closely related to the term Disruptive Innovation, a term shaped by US scientist Clayton M. Christensen. There is a difference between digital transformation and digital disruption: digital disruption refers to the radical change and even dissolution of traditional business processes and models, while digital transformation describes a rather continuous process of change. Digital Disruption goes beyond the conventional understanding of innovation. New forms of value creation, new digital business models and new markets are emerging.
Digital Disruption is radically changing markets
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Examples of digital disruption
The difference between digital transformation and disruption is illustrated using three examples. These examples are not hypothetical. Start-ups are already working on implementing these models. However, they have not yet reached a mass market. These three examples show how traditional markets will change in the coming years.
In order to address digital disruption, it is not enough for companies to establish an innovation management system. They need to increase their innovation capability to be able to manage disruptive innovation and radical innovation. This requires establishing an innovation culture and using state-of-the-art innovation techniques such as Innovation Labs or Open Innovation.
The key principles of digital disruption
Digital disruption follows certain patterns. Here is a brief overview of the most significant ones:
Managing Digital Disruption
Digital Disruption needs different management approaches than digital transformation. It requires a digital roadmap. Digital transformation is comparable to incremental innovation. In recent years, companies have managed both innovation types through a number of different measures: from the establishment of a continuous improvement process or idea management and innovation management, the definition of innovation processes to the establishment of an innovation culture. This is the basis of the innovation capability of companies. To manage digital disruption, however, approaches are needed that are comparable to the management of disruptive innovation. In addition, it makes sense to shift innovation activities to online platforms in order to be able to use the creative potential of employees from different locations, customers and experts. Innovation methods such as open innovation, co-creation and crowdsourcing have proven to be effective in managing Digital Disruption.