Why CIOs and CEOs Must Innovate – But with Caution

By UXC Limited on
Irving Wladawsky-Berger wrote in CIO Journal that all companies, no matter how large or successful, must embrace disruptive innovations that will likely have a major impact on their industry. Doing so requires an entrepreneurial approach quite different from their more typical operational culture.

The term ‘disruptive innovation’ was coined by Harvard Business School Professor of Business Administration, Clayton Christensen. It “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.”

Professor Christensen gives the mobile phone as an example of one such innovation, which disrupted the fixed-line telephony market. Disruptive technologies can have a variety of impacts on the business. This can range from reducing prices and lowering barriers of entry for users looking to access particular products or services, to changing the manner in which an organisation can review its customer “go to market” strategies through to transforming processes and culture. Technologies with the potential to disrupt markets currently include: cloud; mobile applications; security; and business intelligence platforms, tools and applications.

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