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THE REINVENTION ADVANTAGE: 3 Proven Strategies That Separate The Disrupted From the Disruptors

  • Jared Nichols
  • Mar 17, 2022
  • 4 min read


Are you innovating—or just keeping up appearances? While some companies pour resources into 'innovation labs' that deliver little impact, true disruptors are rewriting the rules of your industry. The question is: will you lead the change or get left behind?"


Just ask Blockbuster, Nokia, or Kodak—companies that once dominated their industries before spectacular collapses.


  • Nokia commanded nearly half the global market share at its peak, but its leadership's complacency and internal organizational challenges led to its downfall.


  • When Apple introduced the iPhone in 2007, Nokia remained convinced their basic feature phones would carry them forward. By 2014, Nokia sold its mobile business to Microsoft.


  • In 1974, Kodak engineer Steven Sasson invented the first digital camera, combining a Super 8 movie camera lens with digital components to create the world's first self-contained digital camera. Yet Kodak failed to commercialize this groundbreaking invention, clinging to its profitable film business until filing for bankruptcy in 2012.


These weren't companies that ignored innovation—they were companies that thought they were innovative while the market changed beneath their feet.


Want to ensure you don't make the same mistake?


Here are three actionable strategies that separate true innovation cultures from pretenders:


Reward Dissent, Not Compliance

Most leaders claim they want honest feedback, but their actions tell a different story.


When was the last time someone in your organization was promoted after challenging the CEO's pet project?


Nokia's organizational structure became increasingly bureaucratic, with different departments working in silos and pursuing conflicting objectives. Reports indicate the company was plagued by slow decision-making, internal power struggles, and leadership division on key decisions.


This culture of compliance—not innovation—accelerated their downfall.


The solution?

Build a team with soft hearts and thick skin—where challenging ideas isn't career suicide but career advancement. Make it clear that intellectual honesty trumps hierarchy every time.


The Innovation Test: At your next meeting, have someone track how many times junior staff contradict senior leadership. If that number is zero, you don't have an innovation culture—you have an echo chamber.


Hire Intellectual Rebels, Not Cultural Fits

"Cultural fit" has become code for "thinks like us." This is will kill innovation before it starts.


Xerox PARC invented the graphical user interface, Ethernet, laser printing, and the computer mouse. Yet Xerox failed to commercialize these world-changing innovations.


PARC employees could envision a world where copiers became machines communicating across vast networks, but executives at headquarters—referred to as "toner heads" by PARC innovators—couldn't see beyond their core product area.


The 3,000-mile separation between PARC in California and Xerox headquarters in New York created a disconnect that prevented these innovations from reaching the market.


The solution?

Deliberately hire people who make you uncomfortable—those with different educational backgrounds, industry experience, and mental models. The friction between diverse perspectives is where breakthrough ideas emerge.


The Innovation Test: Review your last ten hires. If they all came from similar backgrounds or think similarly about your industry, you're building a vulnerability, not a competitive advantage.


Cannibalize Your Own Success

The most dangerous words in business are "that's how we've always done it." Your most profitable product today is tomorrow's obsolete relic.


Fujifilm saw the digital revolution coming and proactively diversified into healthcare and highly-functional materials by leveraging their film technology expertise in new ways. The company expanded into skincare and cosmetics by applying their expertise in imaging and materials science.


Today, healthcare accounts for more than 30% of Fujifilm's revenue streams with a goal to reach 50% within three years. Meanwhile, Kodak refused to threaten their profitable film business—and disappeared.


The solution?

Don't wait for startups to eat your lunch. Gather your team today and identify your three most profitable products. Then develop a plan to make them obsolete before someone else does.


The Innovation Test: What percentage of your R&D budget is dedicated to projects that might cannibalize your current revenue streams? If it's under 20%, you're not serious about innovation.


Disruption Paves the Path to Reinvention

The question isn't whether your industry will be disrupted—it's whether you'll be the disruptor or the disrupted.


Domino's transformed from a failing pizza company to a tech platform with 80% of UK sales coming through e-commerce. They didn't just improve their pizza; they fundamentally reimagined what business they were in.


A real culture of innovation isn't just where ideas flow freely— it's where established products, processes, and power structures are constantly under threat from within.
 
TAKE Action 

By 2027, at least one company you currently consider a cornerstone of your industry will be fighting for survival. Will it be yours?


  • Don't settle for innovation theater.

  • Break things. Even if it hurts.

  • Disrupt yourself before someone else does it for you.


Your future depends on it.


 

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