Since the industrial revolution, young and up and coming companies pushed their older and bigger competitors to the wall, but those established companies usually fought back with even better solutions. And we all learned “competition is great for a market” – but that is changing.
In the past 20 years, disruptive startups, like Amazon, Facebook, Uber, Tesla, AirBnB und almost 100 more, pushed rock solid industry segments not only to the wall – they created businesses models, that most of their older competitors didn’t even understand.
The act of Innovation is changing the face of business
more than during the industrial revolution.
How is AirBnB continuously growing market share and – the Hotel industry doesn’t even know how to counter the attack? The older Hotel industry doesn’t even have an idea what AirBnB’s business model does to them. They thought is was the price ticket, but completely missed to learn what their customers actually want. All they thought they can do is aligning themselves with politician and lawyers and try to stop the innovator with legal attacks. Not exactly in the interest of innovation.
How could Amazon, grow almost infinitely large in nearly no time. On their growth path almost nobody event tried to compete with them. Amazon’s competitors did not understand the model they are working on – not even today (2020). Price? It has never been the real issue. Convenience and a sheer limitless product offering, initially just books then almost everything, was the key. Convenience in ordering, order tracking, returning, short delivery time, product validation by other buyers and so forth – yet, today e-tailer still argue that those things are not really so important :).
How could Tesla become the synonym for Electric Vehicles and at the same time, the extremely wealthy German car industry had nothing to offer. Still today all the big automakers struggle to understand what Tesla does. While trying hard to compete with a similar electric car, the old car industry did not understand that also here, it is not about the electric motor itself but an experience, a business model and a vision. These three core aspects are not addressed by their competition at all. And the worst of all: Almost no car manufacturer has even a faint of an idea what their customers dream of when it comes to future cars.
And we are just at the beginning. The next generation of startups in Asia, in the US and now also from Africa is no longer interested in bringing a now product or service to market unless it is truly disruptive. Live insurance for $10 a month in Nigeria, Free financial transactions in South Korea. Electro motor replacement kits for almost any car from the US. Credit analysis robots from Nepal. There are countless disruptors on their way to disrupt pretty much any industry. The good news: they will absorb a good portion of employees of their currently much bigger competitors. But the bad news for older employees and shareholders: there is nowhere to go.
Those who look for IT or Engineering to come up with better ideas will be the biggest losers. Innovation is not about the act of invention but the developing a solution that perfectly matches the needs and desires of a large global audience. Having a few geeks that secretly cooking up a new technology that should rock the customer is clearly not what innovation is about. Having a holistic solution that provides what customers dream about, including a business model, a service model, a delivery model, a pricing model, a contract model and of course a cool product is what it takes to change the way an industry is conducting business. But that is still only the beginning. Bringing such a solution to global markets requires additional innovative concepts to really win. NOTHING of the above is created in any of the innovation labs around the world. Innovative startups don’t build fancy new products – they recreate entire industries.
In this new Innovation Age, innovative thinker bend the future of product development. They fuse innovative solutions and its marketing to one ‘strategy’. They see innovation finance as anything but a small token to let some geeks play. And the do all that way faster than any old style company.
The next decade of the 2020’s will unfold amazingly innovative solution that will make live easier, more comfortable, more secure and help humanity reach new levels. It will change the financial services and insurance industry, the transportation industry, the airline and aerospace industry, sustainable production industry, the automobile industry, the construction and building industry, the food industry, the pharmaceutical industry, the energy industry, the healthcare industry, the real estate, renting and leasing industry, the entertainment industry, the retail, wholesale and trade industry, the tourism and hospitality industry, oil and gas production, even the technology industry itself. And that hits between 75% and 85% of every developed nation.
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