What is disruption? Why are we so enamored by this word? Well it came into the tech lexicon possibly from Clayton Christensen’s classic – The Innovators Dilemma. One key point to be made is this : According to Christensen “new companies disrupt incumbents not when they introduce new technology, but when they help create new markets.”
Well, Jerry Neumann of Neu Venture Capital, thinks different. He doesn’t think Square or Uber were disruptive as neither created any new technology or created a new market and that we understood Christensen’s book all wrong. It was not supposed to be a prescriptive book for disruption but a handbook for incumbents to recognize one. And also that the fascination with disruption is distracting us from creating real businesses where possibilities exist.
If you are thinking of putting Disruption as your strategy for the next fund raising pitch deck you would do well to read his extremely well written post in 2016 on why disruption os not a great strategy. It still makes a ton of sense.
Great way to begin your Monday.
Where I learnt this #301
Disruption is not a strategy