Disruptive innovation. Shifting of the paradigm. These are few buzz words being thrown around in the world of business but what exactly are they and what is the buzz behind them?
Disruptive innovation basically means an innovation that creates a new market and consequent demand which shatters the very foundation of pre-existing markets which have had a long legacy and were once considered all powerful. Along those lines, paradigm means a typical pattern or model.
Think of Uber, the 1st iPhone, AirBnB's , Donald Trump becoming president, these are all moments in history which are examples of disruption which shook our very foundation.
Disruption has given hope to the underdogs; it has inspired startups to believe that they can shatter the glass ceiling and establish a foothold in markets once believed to be saturated with no room for new entrants. The paradigm has now shifted in favour of those who believe, to those who are willing to take risks and change the world for the better.
AirBnB, a major agent of disruption which as a platform has now surpassed total nights booked by legacy players like the Hilton group, raised initial funding through something that unites us all, cereal.
Brian and Joe, the founders couldn't afford the rent on their apartment. To make ends meet, they decided to turn their loft into a lodging space. They set up a simple website with few pictures of the loft, promising home cooked breakfast and got three renters paying $80 each. During the US presidential elections, they decided to go to Washington DC and capitalized on the lack of hotel spaces. However cereal was a major source of survival for them. They bought cereal, repackaged and marketed them as limited edition election themed boxes and sold them as Obama O's and Cap'n McCain's , consequently earning $30,000 through this which became seed funding as no one would fund them and take them seriously. Now valued at $38 billion, AirBnB has completely disrupted the hotel and lodging industry and made even the biggest giants in the market rethink everything.
Disruption favours those who dare to do, those who dream big and plan carefully. That is the true essence of an entrepreneur.