Thursday, May 22, 2008

Innovation types

Simplified, there are two types of Innovation, Disruptive or sustaining. The best way I found to define them is as follows:
1- Sustaining innovation responds to an existing market need which is typically well defined. Another way to put it is "a market looking for a product." Usually successful commercialization can take place in short order for sustaining products since the customer (end user) clearly understands the benefits of the product for immediate application.
2- Disruptive innovation is a product looking for a market since often it is too premature or advanced for what it is originally designed for. Hence it goes looking for markets outside of its original intended niche (application). Often this is where we come across accidental inventions (discoveries) some of which shake up industries and provide us with quantum jumps in technology advancements. Typically disruptive products take much longer to launch and become commercially successful. However, a well managed disruptive technology/product can often lead to great commercial success. It just needs patience and longer term visionaries to see it through.

In a start up, we need both to have a successful business launch and long term success without too much dilution of the original founders equity.

Do you agree?

2 comments:

Mr. Broody said...

Hi BS

How are you? well, I was just browsing blogs at blogger and got yours.
am Irsh, a 19-something guy from New Delhi, India running SkoolsOnline Technologies, an educational software services company for over 3 years now.

I recently started one venture, Nosh'nBasket a Women-only Hangout portal. Got loads of new, innovative stuffs into it.
Can you have a look and tell me if it can really work-out.

Also lem'me know if I can be of any help to you with my company's services and other ventures..

Surfchem said...

I am not sure I can be of much assistance here, since I know very little about the internet businesses.