Investing in Disruptive Innovation – Business Impact.

This write up isn’t about investing in disruptive innovation. It is about taking what the investing community is saying about disruptive innovation and showing the importance it will have on business. The five platforms of disruptive innovation discussed include: DNA sequencing, energy storage, robotics, artificial intelligence and blockchain

In this video Catherine Wood, Founder and CEO at ARK Invest, discusses investing in disruptive innovation. At 4:30 in the video you will find a slide on the estimated impact of innovation platforms on economic activity. It shows how the steam engine, automobile, electricity computer and the Internet impacted the economy. Then it compares the potential impact of DNA sequencing, energy storage, robotics, artificial intelligence and blockchain.

Impact to Supply Chain

Let’s break the disruptive innovation platforms down by the way they impact supply chain. If you are in another business discipline keep reading. These platforms impact all areas of business. Let’s leave DNA sequencing to a later time because the next four are easy to see the direct correlation of how they impact supply chain. Energy storage is much to do about the batteries that are powering electric vehicles and will be powering self driving vehicles. Self driving vehicles will be a game changer for supply chain. It is fairly easy to see how robotics have and will continue to impact manufacturing and supply chain. Combine robotics with artificial intelligence and a whole new set of jobs can be replaced by machines. Most of the business community hasn’t even started to grasp the impact artificial intelligence will have on all businesses in the next ten years. Blockchain provides supply chain capabilities that were either too complex or too expensive to do in the past. Blockchain will provide the ability to fully track product through the supply chain. Below you will find links that get into detail regarding the platforms of disruptive innovation.

This is What Artificial Intelligence says when asked: “What is disruptive innovation in supply chain?”

Disruptive innovation in the supply chain refers to the introduction of a new technology or business model that significantly changes the way that goods and services are produced and delivered, disrupting existing market dynamics and value networks. Disruptive innovations can come from both within and outside an industry, and they often challenge established industry players by offering a lower-cost or more convenient alternative to existing products or services.

In the supply chain context, disruptive innovations can take many forms, including new technologies that enable the automation or digitization of production processes, new business models that leverage data analytics to optimize the flow of goods and services, or new distribution channels that offer more convenient or cost-effective ways to reach customers.

Disruptive innovations in the supply chain can create significant challenges for established firms, as they may require significant investments in new technologies or business models and may disrupt existing relationships with customers and suppliers. However, they can also create significant opportunities for businesses that are able to adapt and embrace the new technologies and business models, potentially leading to increased efficiency and competitiveness.

Quotes about Change

“A disruptive innovation is a technologically simple innovation in the form of a product, service, or business model that takes root in a tier of the market that is unattractive to the established leaders in an industry.” ~Clayton M. Christensen, developed the theory of Disruptive Innovation.
“I think frugality drives innovation just like other constraints do. One of the only ways to get out of a tight box is to invent your way out.” ~Jeff Bezos, Amazon CEO.
“The right focus for the U.S. is on advanced manufacturing – something that requires innovation.” ~Tim Cook, Apple CEO.
“The paradox explored in my book ‘The Innovator’s Dilemma’ is that successful companies can fail by making the ‘right’ decisions in the wrong situations.” ~Clayton M. Christensen
“Change is the law of life. And those who look only to the past or present are certain to miss the future.” ~John F. Kennedy
“The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” ~Rupert Murdoch
“If you don’t jump on the new, you don’t survive.” ~Satya Nadella, Microsoft CEO.
“The reason why it is so difficult for existing firms to capitalize on disruptive innovations is that their processes and their business model that make them good at the existing business actually make them bad at competing for the disruption.” ~Clayton M. Christensen
“Invention is by its very nature disruptive. If you want to be understood at all times, then don’t do anything new.” ~Jeff Bezos
“If a company isn’t continuously improving then it is slowly dying.” ~Dave Waters
“The only way to make sense out of change is to plunge into it, move with it, and join the dance.” ~Alan Watts