HBR On Strategy

Innovation Doesn’t Have to Be Disruptive

Oct 30, 2024

Renée Mauborgne, a strategy professor at INSEAD and co-director of the Blue Ocean Strategy Institute, challenges the notion that innovation must be disruptive. She introduces the concept of 'nondisruptive creation' as a way to foster new markets without harming existing industries. Mauborgne highlights successful examples like Square, illustrating how innovation can thrive alongside job preservation. She also discusses the advantages of this approach, encouraging a shift in mindset to spot opportunities that enhance rather than displace.

23:53

Episode guests

Renée Mauborgne

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Quick takeaways

Non-disruptive creation enables businesses to innovate and create new markets without harming existing jobs or industries, as exemplified by Square's approach to mobile payments.

Identifying non-disruptive opportunities requires businesses to focus on addressing overlooked problems and leveraging emerging societal trends for innovative growth.

Deep dives

Understanding Non-Disruptive Creation

Non-disruptive creation refers to the ability to establish new markets without displacing existing industries or jobs. This concept challenges the traditional view that innovation must involve disruption or destruction to be valuable. For example, Square revolutionized mobile payments by enabling small merchants to accept credit cards, expanding business opportunities without harming existing financial institutions. This approach allows companies to create economic and social value, emphasizing that innovation can be a constructive process rather than a destructive one.

Intro

2min

Non-Disruptive Creation: A New Era of Innovation

10min

Unlocking Innovation Through Non-Disruptive Thinking

5min

Navigating Job Creation in an Era of Technological Advancement

5min

Exploring Non-Disruptive Innovation Opportunities

4min

Disruptive innovation has proven to be such a powerful idea that the word “innovation” is often equated with the broader idea of market disruption. But that’s not always the case.

INSEAD strategy professor Renée Mauborgne says there is a way to create new markets without destroying jobs, companies, and communities. She calls this idea: “nondisruptive creation.”

Mauborgne explains how some entrepreneurs and companies have been able to grow billion-dollar businesses by creating new markets rather than displacing existing ones. She points to Square, which enables credit card transactions with a mobile phone or tablet, as one prime example.

Mauborgne also breaks down the key operational advantages that come with nondisruptive creation and explains how to spot a nondisruptive market opportunity and evaluate its potential.

Key episode topics include: strategy, innovation, disruptive innovation, growth strategy, entrepreneurs and founders.

HBR On Strategy curates the best case studies and conversations with the world’s top business and management experts, to help you unlock new ways of doing business. New episodes every week.

· Listen to the full HBR IdeaCast episode: Disruption Isn’t the Only Path to Innovation (2023)

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