Leaders often have to deal with the effects of creative disruption. According to CreativeDisruption.net, “Creative disruption intentionally brings the challenge or change right to the organization to force it to change and adapt in advance of a random, unpredictable challenge that will eventually reach the organization.” With the creation of innovation, there may be fallout in terms of lost jobs. However, with loss, there may also be creation of new jobs. A computer may replace work that was done manually. At the same time, someone must run the computer.
Creative disruption may be necessary in order to remain competitive. If the competition embraces innovation, they may gain a foothold in the market. The key is being able to recognize the type of innovation that will allow companies to grow.
Some ideas have actually led to the demise of companies. An example is the invention of digital images and its impact on Kodak. The invention of digital images occurred in a lab at Kodak. This invention not only changed the industry but caused the eventual demise of the company. Kodak tried to embrace changes, but lacked foresight. Companies like Kodak may need to embrace new business models when faced with innovative changes.
According to the article Big Data and the Creative Destruction of Today’s Business Model, having a grasp on the importance of managing and understanding data is critical. “Companies are increasingly experimenting with and implementing ways to capture big data’s potential for both short- and long-term advantage. The crucial success factors are to first think of data as an asset—as the foundation upon which to build propositions and business models—and then to diligently build out the capabilities necessary to capitalize on big data’s potential. And perhaps most importantly, embrace the creative destruction of today’s business models.”