Creative Destruction Matters2

CREATIVE DESTRUCTION

AN OXYMORON?

Creative destruction feels like an oxymoron, partnering something good for business with something less helpful. However, it’s a method companies have used for years, combining ideas of innovation with disruption to build something new. We’re going to take a look at creative destruction, how it operates in practice, and how you can implement it in your business.

WHAT IS CREATIVE DESTRUCTION?

According to the Massachusetts Institute of Technology (MIT), creative destruction refers to ‘incessant product and process innovation mechanism by which new production units replace outdated ones’.

First coined by Joseph Schumpeter (1942), the business world viewed creative destruction as the backbone of capitalism, continuing economic performance through the repeated reviewing and replacement of outdated systems.

HOW DOES CREATIVE DESTRUCTION WORK?

In creative destruction theory, economic factors become dynamic and organic processes, constantly fluctuating to make way for change and competition in the market. For it to work, then, long-standing assumptions must be disrupted to make way for innovation.

An example from recent years would be the changes in businesses since the advent of the internet. The online marketplace increased competition on a global scale and forced companies to rethink their marketing strategies. When the internet became portable on smartphones, businesses needed to adapt again to entice customers into their stores.
Creative Destruction Matters2

HOW CAN YOU IMPLEMENT CREATIVE DESTRUCTION?

One way to include creative destruction into your business plan is to use the lean startup model. This methodology for starting a business seeks to shorten product development cycles and thrives on experimentation. With 60% of new UK businesses failing in their first three years, having an adaptable business model that responds to new data can be hugely beneficial.

In the Lean Startup Methodology by Eric Ries, he sets out three key steps to this methodology:

  1. You start with a business idea that is important enough customers will want to buy it.
  2. You execute the business idea with the minimum viable product (MVP) required.
  3. You validate the business idea by testing it with consumers and continue to adapt it.

CONTACT MATTERS2

Creative destruction is an excellent way to keep your business fresh and innovative. If you’re interested in incorporating creative destruction into your business model, get in touch with MATTERS2 today.

Creative Destruction Matters2

SUBSCRIBE TO OUR NEWSLETTER
TO RECEIVE UPDATES ON NEW ARTICLES

Website's Newsletter Form
Fairies and Use of Funds - Matters2

Ask and Use of Funds

A pitch deck is more than just a presentation; it's a storytelling tool that can make or break your chance at securing funding. Among the various slides in this crucial document, one…
Dilution Photo by form PxHere

The Dilutive Method

While the dilutive method does not provide a definitive valuation figure, it is an indispensable tool for early-stage companies seeking funding. By estimating the potential dilution that investors may require, founders can…
Scary Halloween Matters2

5 Spooky Innovations That Monetise Death

To celebrate the spooky season - but also because we just like the weird and creepy things - we thought it would be great to look into some "horrific" startups and companies…
Midjourney a colorful pie chart seen from the window of a space ship

TAM SAM SOM

Investors are typically well-versed in the market they are investing in, and are likely to scrutinise any claims made about market size and potential. As such, it is important to ensure that…

SUBSCRIBE TO OUR NEWSLETTER
TO RECEIVE UPDATES ON NEW ARTICLES

Website's Newsletter Form
Measure Matters2

KPIs

It is generally agreed that four to ten measurements…
aaa/unconventional

aaa/unbranded

All you need is being unconventional! aaa/unbranded® stands for…
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments