‘Disruptive Confusion Unraveled’: Free eBook Cuts Through the Hype on Disruptive Innovation
With disruptive innovators averaging a growth rate 20 times greater than the S&P 500®, new guide explains disruption in simple business terms and why it matters
ATLANTA – (August 8, 2011) – A new eBook from Innovative Disruption Inc. cuts through the hype about disruptive innovation, offering simple explanations that clear up the most common misconceptions.
Available for downloading free of charge at www.innovativedisruption.com, ‘Disruptive Confusion Unraveled’ was published to bring clarity to the subject of disruptive innovation, and explain its business significance from financial, growth, investment and risk perspectives. Using simple terminology and straightforward analysis, the new eBook focuses attention back on the core attributes of disruption and why it matters to investors, entrepreneurs and business executives, stripping away the exaggeration, hype and misunderstanding that have become rife in the years since disruptive innovation was first described.
“It’s a common misconception that if you build a better mousetrap, the world will beat a path to your door,” said Paul Paetz, CEO of boutique management consultancy Innovative Disruption. “Deep down, people want to believe that ‘better’ or ‘advanced’ is the same as ‘disruptive’, and this lack of clarity leads many to miss the reasons why supposedly great innovations fail in the market. If you are a disruptor, or in an industry being disrupted, it’s critical to your business strategy that you get this right, so our goal was to go back to first principles simplify so that anyone can clearly understand what disruptive innovation is – and is not -- and why it matters.”
Comparing the growth rate of well known disruptors such as Apple, Starbucks and Whole Foods during their marketing disrupting period with the average compound growth rate of the S+P 500® index shows that the disruptive innovators average more than 20 times the growth of the average S&P 500 member. The eBook also includes an alternate way to measure disruption’s value – by comparing the valuation of innovators who are disruptive with those that aren’t, using companies evaluated through the firm’s proprietary Disruption Report Card™. This analysis showed a similarly dramatic outperformance by innovators that are disruptive, which is detailed in the eBook.
Disruptive Confusion Unraveled outlines six of the most common misconceptions about disruptive innovation:
- All innovation is disruptive by definition
- It has to be breakthrough to be disruptive
- It only applies to technology
- It’s just a marketing adjective companies use to imply that their product is more advanced
- It’s a meaningless buzz phrase
- All innovation is overrated, and disruptive innovation isn’t any better or different
“Disruptive innovators grow faster, dominate their markets and ultimately command the highest valuations. This eBook was written to demonstrate that it’s worth the effort to cut through all the hype in the marketplace and instead take an analytical approach that assesses whether disruption is present or has the potential to be. The pay-off can be enormous,” said Paetz.
Innovative Disruption, Inc., is a boutique consultancy specialized in helping innovators who possess that special disruptive sauce to achieve their market-disrupting potential, and in developing strategies for businesses whose industries are facing disruption. Innovative Disruption sorts out disruptors from non-disruptors, and also provides analysis, screening tools and portfolio guidance critical for VCs and investors betting on disruption. Innovative Disruption CEO Paul Paetz is the developer of the Disruption Report Card™, a predictive assessment tool that evaluates and grades the probability that a company/product will disrupt the market, identifying disruptive strengths and weaknesses and opportunities for improvement.
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