Strategy Development

Disruptive Innovation: Why Companies Must Strategically Embrace Radical Change

Stefan Benndorf
Partner & Founder

In a world where technological developments can upend entire markets within a few years, incremental improvement is no longer enough. What promises success today can be obsolete tomorrow. Disruptive innovations have the potential to dethrone established market leaders - not because they are better, but because they think differently. They shift the rules of the game and force organisations into strategic repositioning.

What this means for you:

If you as a manager think in terms of stable earnings logic, you must ask yourself: What unmistakable break could fundamentally change my business field tomorrow? Where would a start-up begin to undercut my position? And what am I doing today to protect against it - or to do it myself?

Disruption is not technology - it is a business model

Disruption describes a profound change in existing market rules and value creation dynamics. It breaks with previous assumptions about price, access, function, or user behaviour. What matters is not the technology itself, but its business application scenario. Successful disruptors solve real problems more simply, more cheaply, or more accessibly than existing providers.

What you should watch for:

Ask yourself: What "job to be done" does my product fulfil today? Are there alternative, emerging approaches I am ignoring? Think not in product categories, but in user logic.

Recognising disruptive threats before they become real

Disruption rarely shows itself immediately. The first signals are weak and uncomfortable: fringe businesses operating on different logic, customer migration to cheaper or simpler alternatives, technological breakthroughs in adjacent fields.

Your task as a manager:

  • Build a radar. Who regularly monitors developments from outside your industry, start-ups, and technology trends?
  • Establish a system for systematic scenario work - not as a symbolic gesture, but as a fixed component of strategy processes.
  • Pay attention to bridge markets. Where are new customer groups emerging that cannot do anything with today's offerings?

The deceptive security of the core business

Your current business is working? That is precisely the problem. Success creates blind spots. Resources, KPIs, and attention follow what already exists. As a result, new models are either ignored or fought off.

Concrete action:

Regularly ask yourself and your team: "Which of our strengths could become weaknesses in the future?" and "What would we do differently if we had no legacy baggage?"

Thinking ambidexterity practically

In theory, ambidexterity - the balance of exploitation and exploration - is well established. In practice, however, it means deliberate resource decoupling: time, money, attention, and KPIs must be managed separately.

Critical questions:

  • Is your innovation team measured by the same KPIs as your sales team?
  • Are experiments allowed to fail - or are they implicitly penalised for failure?
  • Do innovation projects have direct acceess to top management?

The power of underestimated competitors

Disruptors rarely start with large market shares. They emerge at the periphery, grow under the radar, and attract overlooked target groups. Established providers dismiss them - until it is too late.

What you should do:

  • Focus on "non-customers" - who does not use your offering, despite having an underlying need?
  • Regularly invite external disruptors to strategy meetings: What questions do they ask that nobody in your organisation is asking?

Systematically breaking down cultural barriers

Innovation often fails because of mindset, not ideas. The real blockers frequently sit in the middle of the organisation: department heads who avoid risk, processes that penalise deviation, meeting routines that talk down new ideas.

What managers should reflect on:

  • What implicit rules actually govern your organisation? Is deviation rewarded or suppressed?
  • Which rituals could you abolish to create more room for uncertainty?

Acting disruptively means taking responsibility

Real disruption changes power structures. It threatens jobs, shifts resources, and creates uncertainty. Organisations that ignore this lose legitimacy.

Your lever as a leader:

  • Link innovation to responsibility: What reskilling programmes do you need?
  • Formulate ethical guardrails for the use of new technologies in your context.
  • Bring social partners, employees, and affected stakeholders on board at an early stage.

What you could do concretely tomorrow

  1. Develop a disruption scenario: Commission a worst-case scenario showing how your business model could become obsolete within three years. Discuss it at board level.
  2. Start a start-up dialogue: Identify three start-ups with potentially disruptive impact. Engage with the founder perspective - not for acquisition, but for a change of perspective.
  3. Break internal rules: Create a "rule-breaker team": Which processes would you need to dismantle in order to try new things?
  4. Ask the strategic question: If you were starting fresh today - what would be the boldest, most meaningful, most radical offer you could make to your customers?

Conclusion: Disruption begins in the minds of decision-makers

It is not technologies, start-ups, or market trends that determine disruption. It is the ability of decision-makers to think radically differently, ask uncomfortable questions, and act consistently. Those who cannot or will not do this will be overtaken by the dynamics of change.

Your mandate:

Leave behind the logic of control. Enter the terrain of active shaping. And ask the one question that can change everything: "What am I currently overlooking because my business is still working?"

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Stefan Portait

Stefan Benndorf

Partner & Founder

Stefan ist Founding Partner von scaleon und Experte für Strategie- und Organisationsentwicklung, Strategieumsetzung mit OKRs und anderen agilen Methoden sowie Digital Business Building. Vor scaleon war Stefan COO, CEO und Co-Founder verschiedener Digitalunternehmen und auf mehreren Kontinenten aktiv. Stefan arbeitete mehrere Jahre bei der Top-Management-Beratungsfirma Altman Solon für Telekommunikations-, Medien und Private Equity Unternehmen. Er hat Abschlüsse in Business und Public Administration, Public Policy von der Handelshochschule Leipzig (HHL), der London School of Economics (LSE) und der Hertie School of Governance.

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