It's not about the technology!!

Why is it that so many startups and industry outsiders seem able to innovate industries that have been dominated by big businesses for so long?

Let’s face it, the established appear to be holding all the cards. They have the money and resources, the customers and sales channels and their factories have become well-oiled machines over many decades of perfecting their trade.

So why then didn’t the music industry create Spotify? In fact, why wasn’t it Apple?

Or, why was it not one of the ‘big banks’ who created PayPal?

And why has it taken complete industry outsiders to drive the electric car revolution? [pun intended]

Instead, it's taken three guys from Scandinavia to create and dominate the online streaming music industry. And a maverick South African to cause a revolution in the banking industries, to name but one. And it's taken a technology giant to turn the idea of the automotive industry upside down.

And that’s a key point… we’re talking about complete industries being rocked!

The business world is awash with the cliche [yet still incredibly valid and impressive] so-called ‘digital disruptors’ such as Airbnb, Google or Uber. But that implies that their business and success is about the technology per se. But that’s clearly not the case…

Technological innovation is not the growth engine of these or most other disruptors in this exciting era. Most are making use of technology that already exists or is at least within reach of others too.

The reality is it’s all to do with leveraging technology and the newcomers real ‘weaponry’ is in the form of their business models.

If you consider the various examples I’ve mentioned already you can see how skillfully these new attackers create their business models so as to turn the perceived strengths of the established into liabilities.

Think about any of the big hotel chains with their dizzying operations and overheads; their greatest assets they would claim... But would you classify them as assets or liabilities in light of the Airbnb business model?

Or think about the traditional car manufacturers and their vast sales and service networks around the world; a promoted 'value add'. But does the Alphabet [Google] Robocab even require sales networks? If the cars are not for sale and you’re simply paying for a ‘car as a service’ then what are the implications for the established?

There is no doubt... we are living in interesting times. Some feel threatened, some see the opportunities. What I find fascinating is the way these ‘attackers’ are establishing new rules for the game. Entire industries. And protest as they do, at some stage the established will have no choice but to comply...

Which would you rather be? Part of the old guard or one of the Mavericks?