Today, merely to survive one has to innovate but to grow and prosper one must master the craft of launching Disruptive Innovations.
Disruptive Innovation, a term of art coined by Professor Clayton Christensen, describes a process by which a product or service takes root initially in simple applications, at the bottom of a market and then relentlessly moves ‘up market’, eventually displacing established competitors.
An innovation that is disruptive allows a new set of consumers an access to products or services that were earlier only accessible to high-end consumers. Companies following Disruptive Innovation in their initial stages have the following characteristics - lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics.
Disruptive Innovation begins by understanding unexpressed needs and creating means for tapping those unexpressed needs. For example, 20 years ago, no one felt the need to communicate with their family members from a moving train. But, mobile phones created that need amongst the consumers and today there is an evident need to communicate from wherever they are to whoever they want to reach out to.
At Godrej, we have developed our own process of creating Disruptive Innovation. Currently, the Disruptive Innovation process is used for unlocking large untapped market at the bottom of the income pyramid and fostering inclusive growth by improving their livelihood, living standards and their lifestyles. Thus, the Disruptive Innovation journey will help us to meet aspirations of millions of people and making a huge difference to their lives.
Navroze Godrej said, “With innovation as our most powerful weapon and a brighter future our most noble goal, we need to act now and ensure that in ten years we have the whole world asking - How did you find it in yourselves to rise up to the challenge?”