Our lens for what creates disruption and innovation is sometimes misguided. Transformation is often delivered through a form of “technology fusion.” That is, many of today’s innovations offer little in the way of new technologies; instead, they disrupt through “recombining.” When recombining, innovators reassemble existing elements in a way that makes them new.
Recombining business models: Pioneering examples
There are many examples of disparate elements that are blended to craft unique and transformative business models.
Consider Uber’s platform–the company ingeniously combined navigation, ecommerce apps, and existing automobiles to revolutionize transportation. What were once separate mapping, booking, and driving tools have now converged into a cohesive, user-friendly platform, entirely redefining urban mobility. Then Grubhub expanded upon that model by taking those elements and creating a food delivery version, utilizing Uber and other drivers within its platform.
Square has combined many technology and convenience elements into one comprehensive solution. The company offers point-of-sale, ecommerce, payment, web, and even financing services. But individually, none of these services is particularly inventive–it’s the unique combination that creates disruption.
Wrapping services around your technology
Our current business narrative is obsessed with AI. But AI alone will not be enough to disrupt industries and upend incumbents. It’s more likely that technologies will wrap around products, or products will wrap around technologies. For example, we expect new business combinations to emerge as streaming is bundled with TV services. But streaming offers all types of new features, as algorithms can curate content based on a user’s preferences in a way that traditional television cannot.
Tech factors facilitating the recombination trend
Several rapid technological advances are enablers of such transformations. They include:
- Advances in AI: Artificial intelligence has enabled businesses to predict market trends, optimize operations, and develop models that seemed unimaginable before.
- ‘Everything as a Service’: The ‘as a Service’ model of Software (SaaS), Platform (PaaS), and Infrastructure (IaaS) provides access to world-class resources for companies of all sizes, paving the way for new combinations.
- Mobile app development: The prevalence of smartphones has made mobile apps the go-to interface for consumers. Companies can quickly launch services with advanced app development tools, integrating various business models into one user-friendly experience.
- Payment integration and technologies: With the introduction of blockchain, payments have become more secure and transparent, allowing for creative business model combinations that require seamless financial transactions.
These technological factors are shifting the environment in a way that recombining is becoming increasingly popular.
Things you should consider before recombining
Considering the intricacies of your industry and the nuances you can bring to it requires meticulous planning. As you contemplate this fusion of elements, here are vital factors to consider:
- Synergy between the combined entities: Ensure that the elements you’re merging truly complement each other.
- Value addition for the customer: The fusion should enhance the experience or expand benefits for your target audience.
- Technological feasibility: Ensure your vision can be seamlessly realized with the available technology.
- Scalability and adaptability: The resulting model should be capable of growing and evolving with market demands.
With these considerations in mind, remember that innovation is not merely about blending components, but ensuring the resultant model resonates and serves its intended audience for the long haul.
