What is Discontinuous Innovation?

Innovation Strategy is the foundation for company growth and adaptability in the ever-changing environment that is business today. Innovators must conceive their innovation strategy around their business objectives and incorporate both Continuous and Discontinuous Innovation. Discontinuous Innovations introduce significant technological changes or leaps and can establish entirely new business models or markets. Think of Electric Vehicles or Streaming Platforms. Discontinuous Innovation is also used interchangeably with “radical” or “disruptive” innovation. Continuous Innovation, in contrast, involves small, consistent, and incremental enhancements to products or services.  Think of it like modern evolution vs the Cambrian Big Bang.

In this article we delve into examples of Discontinuous Innovation, discussing some examples and best practices for its management.

Thus the “Netflix Effect” was born, revolutionizing the way we watch movies and TV and disrupting the entire entertainment industry. Netflix is credited with pioneering binge-watching, challenging traditional networks with unlimited options and ad-free watching.  Algorithms tailor your personal viewing experience, providing the streaming service with data to analyze trends and viewing patterns – driving their content creation investment. Netflix created an entirely new entertainment model and is a textbook example of Discontinuous Innovation.

When my middle schooler came home with a 3-D printed Star Wars model from Bolts and Bytes camp a few summers back I was suitably impressed but had no concept of the revolutionary effect that 3-D printing was going to have on the world. Never before have we been able to so easily and quickly replicate physical objects.

While 3D printing has many potential applications including apparel, manufacture of hard-to-find parts, and construction, it is the healthcare field that I am most excited about. 3D-printed personalized organs, skin grafts targeted nanoparticles, and medicine designed to individuals’ specific biological needs will revolutionize personal healthcare. Countless lives will be saved by recreating anatomical structures within cell cultures, mimicking the growth of human organs, and eliminating the need to wait for suitable human organ donors.

Disruptive Innovation – 3D Printing

3D printing is changing the way business works, creating radical cost reductions in areas such as molding and tooling, eliminating barriers to entry which can disrupt industries where some companies have traditionally held an advantage. 3D printing reduces the reliance on global supply chains, minimizing lead times and logistics costs.  This decentralization allows companies to produce closer to the point of consumption, creating opportunities for KANBAN and other inventory optimization strategies. Traditional manufacturing relies on standardization while 3D printing allows for mass customization – products tailored to customer specifications without significant cost. Hyper-personalization disrupts many sectors creating unique products and designs for customers. 

3D printing technology is also driving sustainability in industry increasingly focused on additive processes to minimize waste. As businesses continue to adopt and adapt to this technology, we can expect to see even more transformative impacts across various sectors. For an in-depth look into the effect of additive manufacturing in CPG, Energy, and New Materials take a look at our article on 3D Printing.

Best Practices for Disruptive, Discontinuous Innovation

• Create a culture of innovation and encourage a risk-tolerant environment. 
• Allocate resources to R&D and stay ahead by exploring emerging technologies like AI, 3D Printing, and Robotics which can serve as catalysts for radical innovation. 
• Create partnerships with research bodies to collaborate and access cutting-edge research and technologies. Our Scouting Team can connect you with subject matter experts across the technology sphere.
• Adopt an agile and lean innovation framework to ensure that ideas are analyzed and validated quickly. The Ezassi Ideation platform will provide you with a collaboration tool to manage your innovation team and projects in real time.
• Embrace “Fail fast, Learn faster” and pivot if necessary, with smart innovation tools. 
• Foster an open and collaborative innovation program.
• Focus on IP Management – protect your breakthrough technologies and inventions and monitor competitor patents published and granted to identify emerging threats and opportunities.
• Measure and track performance – establish KPIs to validate the success of your radical innovation initiatives, such as the number of patents filed, time-to-market, or revenue generated from new products. Our Strategy Team can assist in determining the right metrics for your team’s objectives. 
• Put a master plan in place for the longer term and prepare a flexible multi-year roadmap. Consider that radical innovation often requires long-term investments that may not yield rapid ROI, but this mindset is necessary to maintain and grow your innovation endeavors.

The Benefit of Discontinuous Innovation

By embracing these industry best practices, organizations can not only adapt to but excel in an increasingly competitive, rapidly evolving landscape shaped by transformative innovation.