The Next Big Thing: From Toy to Disruptive Technology

The Next Big Thing: From Toy to Disruptive Technology

In the world of innovation and technology, the next big thing always starts out being dismissed as a "toy." This concept, derived from Clay Christensen's disruptive technology theory, highlights the importance of recognizing the potential of seemingly insignificant ideas. Disruptive technologies are often overlooked because they initially fall short of meeting user needs. However, to distinguish a disruptive toy from one that will remain insignificant, it is crucial to evaluate products as processes.

One key aspect to consider is the speed at which a process is improving. Is it getting better or worse? While incumbents may focus on features and functionalities, more powerful external forces like the decreasing cost of microchips, widespread availability of bandwidth, and the increasing intelligence of mobile devices drive disruptive technologies forward. A disruptive product must be designed to ride these changes up the utility curve.

An excellent example of this is Wikipedia. Despite being constantly edited by spammers, vandals, and wackos, it improves every day at a faster rate. The process speed of good people outweighs that of bad people. As long as Wikipedia continues to get better steadily, it will eventually meet and surpass user needs. Therefore, sustaining technologies implemented by startups are unlikely to be the ones that dominate the top lists in 2020. The next big thing will be the disruptive technologies that sneak by because people dismiss them as mere toys.

Startup = Growth: The Essential Ingredient

When it comes to startups, growth is the only essential thing. If a startup achieves rapid growth, everything else tends to fall into place. To grow rapidly, a startup must create something that appeals to a large market. The key to scaling up and becoming a big company lies in producing a product that lots of people want and effectively reaching and serving all those people. However, most businesses face constraints in either creating a desirable product or reaching a wide audience.

What distinguishes successful startups is that they are not constrained in either aspect. They manage to overcome the limitations of the market by offering something innovative and novel. Founders of successful startups often possess a unique perspective that enables them to identify ideas that others fail to see. At the initial stages, innovation often occurs unconsciously, as rapid changes in one area expose significant problems in other areas.

Starting a startup is not just about launching a company; it is a declaration of ambitious goals. Founders commit to creating a fast-growing company and embark on the search for rare ideas that can fulfill that vision. The growth of a startup typically goes through three phases. Initially, there is a period of slow or no growth as the startup navigates the challenges of finding its direction. Once the startup figures out how to create something that resonates with a large audience and effectively reaches them, there is a period of rapid growth. Eventually, a successful startup transforms into a large corporation. However, growth will eventually slow down due to internal limitations and market saturation.

Actionable Advice for Aspiring Startups

• 1. Embrace Disruption: Instead of focusing on sustaining technologies, look for opportunities to disrupt existing industries. Identify areas where external forces like technological advancements can be leveraged to create innovative solutions that meet evolving user needs.

• 2. Think Unconventionally: Challenge the status quo and think outside the box. To create a successful startup, you need to bring a fresh perspective and identify ideas that may seem obvious to you but are hidden to others. Don't be afraid to be different and embrace unconventional thinking.

• 3. Prioritize Growth: Make growth your primary goal. Focus on developing a product or service that appeals to a wide market and find effective ways to reach and serve that market. Continuously measure and track your growth metrics to ensure you are on the right path.

In conclusion, the next big thing in the tech world often emerges as a toy, dismissed by incumbents who fail to recognize its disruptive potential. By understanding the importance of processes and external forces, startups can ride the wave of change and create innovative solutions that surpass user expectations. Growth is the essential ingredient for startups, and by embracing disruption, thinking unconventionally, and prioritizing growth, aspiring entrepreneurs can increase their chances of success in the dynamic and competitive startup ecosystem.