Don't Just Disrupt Your Industry - Transform It | Entrepreneur

"More than a decade ago, business gurus were quick to label any idea or development that was mildly novel as " disruptive innovation." Originally coined by American academic and business consultant Clayton Christensen in his 1997 book The Innovator's Dilemma, it was used largely to describe how small businesses could challenge larger players within a market, often entering at the low end and moving upmarket and disrupting established competitors' core business."

"But in the mid-2010s, gone were the days of the so-called disruptors, as critics began noting how the term had become a business buzzword rather than a term that was describing meaningful change. Jill Lepore, a professor of history at Harvard, wrote an article for The New Yorkerabout how "disruptive innovation" is being used inaccurately in the business world, stating that many companies described as "disruptive" never succeeded in displacing incumbents."

"Furthermore, when compared with "disruptive," the word "transformational" helps you visualize positive systemic change. The effects caused by transformational innovation are incremental and long-lasting, and frankly, quite relevant in the age of systemic shifts, such as climate change, ESG and sustainability factors, AI technologies and other major global innovations. Here are five reasons why entrepreneurs today need to focus on transformational innovation instead."

Transformational innovation emphasizes positive, systemic change that is incremental and long-lasting, and aligns with global shifts like climate change, ESG, sustainability, and AI. The term replaces the overused 'disruptive innovation' label that often described mild novelty rather than meaningful market displacement. Historically, 'disruptive innovation' described small entrants challenging incumbents by entering low-end markets and moving upmarket. Critics highlighted misuse of the term when many so-called disruptors failed to displace entrenched competitors, prompting a shift toward 'transformative' or 'transformational' framing. Entrepreneurs can use technology creatively to generate social impact and increased economic outcomes through transformational innovation.

Read at Entrepreneur