In the fast-paced world of innovation, breakthrough innovation has become a buzzword. Startups and corporations alike are chasing after it, recognizing its potential to fundamentally change industries and markets. But what exactly is breakthrough innovation, why does it matter, and how can you create it? In this article, we'll delve into these questions and provide insights into the world of breakthrough innovation.
What is Breakthrough Innovation?
Breakthrough innovation is a term that encompasses innovations that fundamentally change the dynamics of an industry or market. While there isn't a clear consensus on its definition, most agree that breakthrough innovation involves significant technological advances that have a large impact on the efficiency or cost of a product, service, or process. It goes beyond incremental improvements and disrupts the status quo.
Why Does Breakthrough Innovation Matter?
In today's age of innovation, there are more emergent technology-based "innovation platforms" than ever before. Combined with easy access to information, capital, and increased understanding of new business models and technology-enabled organizations, the ground is ripe for breakthrough innovation to reshape industries. It has the potential to create new opportunities, drive growth, and outpace competitors.
Breakthrough innovations not only benefit the companies that pioneer them but also have a compounding effect on the overall economic value. The application of disruptive innovation platforms to reshape specific industries and markets leads to a significant impact. It forces other players in the industry to adapt and follow suit, resulting in a wave of innovation and transformation.
Examples of Breakthrough Innovation
To better understand what breakthrough innovation looks like in practice, let's explore a few examples:
1. Airbnb: Airbnb is a classic example of disruptive innovation. It started by offering peer-to-peer accommodation, initially renting out air mattresses for the night. Over time, it climbed up-market and surpassed traditional hotel chains. Airbnb's disruptive core business model innovation redefined the travel experience, offering a more personal and authentic alternative at an affordable price. Additionally, they focused on creating a smooth end-to-end customer experience and building mechanisms to ensure trust between guests and hosts.
2. Reusable Rockets: Commercial space companies like SpaceX, Blue Origin, and Virgin Galactic have achieved a breakthrough by developing reusable rockets. This technology dramatically decreases the costs of space launches, making space-related technologies and businesses more feasible. Reusable rockets are the result of numerous technological advancements and innovations, such as landing and reusing rockets that have been to orbit.
3. Tesla: Tesla's electric vehicles have had a significant impact on the car market. While there is debate about the type of innovation Tesla represents, it is clear that they have innovated on multiple fronts. Tesla's electric drivetrain, combined with a vertically integrated business model and advancements in self-driving technology, has challenged and surpassed internal combustion engine cars. Their innovations have forced the rest of the automotive industry to follow suit, with many large automakers now developing their own electric vehicles.
How to Create Breakthrough Innovations
Creating breakthrough innovations is a complex and challenging process. However, there are three basic steps that can guide you:
1. Identify the Right Problem or Opportunity: Breakthrough innovations start by identifying existing problems in the market or by recognizing business opportunities that can be approached in a fundamentally different way. The problem or opportunity should be significant enough to warrant a breakthrough innovation, and your approach should be contrarian enough to transform the status quo. Consider using frameworks like the "Jobs to Be Done" framework to uncover unmet needs and evaluate innovative ideas.
2. Address the Opportunity with a Key Innovation: Once you have identified the problem or opportunity, the next step is to address it with a key innovation. This innovation will serve as the backbone and platform for your business. It could be a technological advancement, a new business model, or a combination of both. Value innovation, which focuses on enabling more value at a lower cost, can be a useful framework for this step.
3. Scale the Innovation to Breakthrough Impact: Breakthrough innovations don't become overnight successes. It takes years of relentless focus on building and scaling a business around the innovation to achieve breakthrough impact. Scaling often requires supporting innovations and additional breakthroughs. These supporting innovations can be developed internally or enabled through partnerships and collaborations. Building a sustainable competitive advantage and protecting your business from competition should also be considered during this phase.
Conclusion
Creating breakthrough innovations is a challenging endeavor that requires vision, perseverance, and a deep understanding of the market and technology landscape. While breakthrough innovations have the potential to reshape industries and markets, they also come with significant risks and uncertainties. It's important to carefully evaluate the problem or opportunity, address it with a key innovation, and scale the innovation to achieve breakthrough impact. By following these steps and staying committed to innovation, you can increase your chances of creating breakthrough innovations that drive growth and success.
*Note: This article is intended to provide insights into breakthrough innovation and does not constitute professional advice.
