Over the past five years, the impact of new technology on corporate America has become all the more apparent. Young innovators are introducing bold new business strategies and challenging widely accepted business models as disruptive technology is adopted. in favor of that are never-before-seen. If startups are still a mystery to you, here are the three main ways that startups are changing businesses:
1. Disruption is positive
When looking at one of the core principals of most successful startups, there is one that many follow: disruption. What does this mean? Disruption is defined as a “disturbance or problem that interrupt an event, activity, or process.”. Airbnb, for example, continues to cause a disturbance within the travel industry by allowing individuals to host their own homes, beds, or couches as hotels, which negatively impacts big hotel chains. In an interview with the WSJ, CEO Brian Chesky explains:
Here were laws created for businesses, and there were laws for people. What the sharing economy did was create a third category: people as businesses. . . . They don’t know whether to bucket our activity as person or a business.
Similarly, Uber disturbed the transportation industry by developing a profitable rideshare community; which caused problems with public transportation and taxi industry. It seems then, that creative disruption is a common thread that links the most successful startups together — regardless of industry. Despite this common knowledge, there are still countless startups who fail because many are unable to find the right way to infiltrate and shake down a specific industry. It takes critical thinking, customer driven out-of-the-box ideas, and most importantly execution. Yet, it can assumed that if one seeks to create a successful startup — a disruptive idea is imperative.
2. Innovation is key
It’s hard to read a success story about a startup that doesn’t feature an overabundance of the word “innovation”. This is because you cannot have one without the other. Taking again our earlier example of Uber — before 2009 there was very little interest in disrupting the livery industry no companies out there that were trying to do what Uber did. This is because Uber was a one-of-a-kind, mold-shattering business. Almost everyone in their lifetime has given another person a ride, or even carpooled. Yet, no one ever thought to turn something as simple as ride-sharing into a profit making machine. Uber took something everyone used (taxi’s or public transportation) and decided to make it cheaper, easier, and profitable by individuals. It is for this reason that they are on track to be the most valuable venture-backed startup in history. Innovation is absolutely necessary when creating a startup, otherwise, what’s the point?
3. Good design is good design
Design is an essential part of a good business. On speaking of the importance of designers, Annabella Coldrick states:
Design can help companies better understand their users’ needs to create innovative solutions. This may range from redesigning existing products, to making a website more user-focused, to developing a new customer service proposition or company strategy.
However, you would be surprised as to how many big corporations do not hire more than one or two designers. Startups have quickly realized the importance of a strong design team if they want to attract both VC’s and users in an extremely short amount of time. Creative direction establishes branding, marketing, and the overall core identity; something that remains. When you think of Google, is the first thing that pops into your head their colorful logo? Good. This is a perfect example of good branding. Google’s logo has only just changed after 13 years, and still the core colors remain. As a result, startups tend to hire a strong designer before closing their series A. This gives the designer to grow organically within the startup and witness firsthand the aspects of the company that make it unique within the marketplace.