Thoughts on Disruptive Innovation

Why is it always startups disrupting the business as usual and incumbents prefer to stick with the convention? Incumbents for sure have more capabilities and resources. So, that can not be the reason.

How can an established organization benefit from the idea of disruptive innovation?

Disruptive innovation, as described by Clayton Christensen, is  “ A process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.” Disruptive innovation does not refer to breakthrough, mega changes in technology, it is rather an innovation in the current processes that make products and services more affordable, accessible especially for underserved customer segments. In order to answer “how can an establish organization benefit from the idea of disruptive innovation”, we should find out what the obstacles are and the ways to overcome these obstacles for the incumbents. Is it because incumbents are shortsighted or do not have resources and capabilities or can not see the value of disruptive innovation? No, the data shows that even though companies developed new products or services based on new technologies, customers did not find them attractive and resisted to changes (Shane, 2014, pp.37). According to Christensen, root cause of the problem that big companies can not adopt disruptive innovation is the main customers.

Mainstream customers of incumbents favored more incremental changes on top of existing technologies. Because they are the cash cows, companies need to satisfy their demands. But that does not prevent to ignore the underserved customer segments. Niches may seem not profitable in the short run, companies will get return on investments in the long term. The theory of S-curve suggests that performance shows slow growth initially, then accelerating and then decelerating as the market saturates. Companies should jump from one S-curve to another and do it in the right time.  Below picture demonstrates that there are 3 hidden S- curves(competition, capabilities and talent curves) that are the signs of trouble and they alert companies to jump to the new S-curve.  So, incumbents can take  advantage of disruptive innovation by knowing the right time to make the jump from one S-curve to another.

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Figure 1: Retrieved from http://www.accenture.com/sitecollectiondocuments/pdf/accenture_jumping_the_s_curve.pdf. Copyright 2011 by Accenture.

Lower profits, high investments are another obstacles for the incumbents when it comes to make the shift to the disruptive innovation. Characteristics of disruptive businesses, at least in their initial stages, can include:  lower gross margins, smaller target markets, and simpler products and services that may not appear as attractive as existing solutions when compared against traditional performance metrics (Clayton Christensen). An established firm can adopt a ‘wait & see’ approach as well. After successful entrants prove that potentially disruptive innovation is serving well and the profits are promising, the incumbent can acquire them. Due to the nature of disruptive innovation, it seems more favorable from startups point of view than for incumbents in the beginning. However, big established firms also have the power and resources to acquire the startups or licenses.

Historical data shows us that startups are the main drivers of such an innovation which disrupts the existing dominant design. For example, Cisco, once an innovative startup that outperformed every player in the telecommunications industry. Cisco entered to market for consumers underserved with circuit switched products instead of computing with incumbents such as Lucent or Nortel on Voice products. Entrants can play the disruptive innovation game with more flexibility as they do not need to consider cash cows, current processes, products or technology to be discarded. Startups can grow with finding niches, creating own market instead of competing in the red ocean with the big players. With a visionary approach, startups can define under-served consumers and the profitability in the short and long term. In order to benefit from disruptive innovation, startups can focus to reshape the prevailing business models that dominant market follows.The obstacle for a startup is being patient because R&D efforts will not pay off initially(refer to S-curve).

References:

Shane, Scott. Technology Strategy For Managers And Entrepreneurs. Upper Saddle River, NJ: Pearson/Prentice Hall, 2014. Print.

Accenture.com,. ‘Accenture | Strategy, Consulting, Digital, Technology And Operations’. N.p., 2015. Web. 21 Sept. 2015.

Clayton Christensen,. ‘Disruptive Innovation’. N.p., 2012. Web. 21 Sept. 2015.

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Alacati/Ayayorgi: a Dreamland full of beautiful colors

For me, the best time to go for vacation is end of august or beginning of september, especially for Turkey. The costs become quieter with less tourist  population which means less queue, more car parking place, better service in restaurants, bars and hotels.  I always wanted to visit Alacati in Turkey, heard so many good comments about there from my friends who have already been there.

I and my friend did not plan our holiday throughly, we wanted it to be spontaneous and found ourselves in a short flight from Istanbul to Izmir. Before heading to Alacati, we tried to arrange a nice and affordable car with car rental companies in the airport and rented the most uncomfortable car ever :)) I don’ t want to complain much though as it gave us the flexibility to visit around rather than just stick nearby the hotel.

The lovely garden of the boutique hotel

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For the next 5 days, we spent our mornings having breakfast in hotel and heading to Ayayorgi beach clubs after drinking our morning coffee.

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Ayayorgi Beach Clubs

Sole More: It was so crowded, probably because we went there on Saturday. After 15 minutes of negotiating with the staff working there, they  arranged a place just near sea 🙂 After 2 drinks, one hour of socializing with others and swimming, I felt a bit tired and fell asleep while sunbathing. I woke up with super loud music coming from the sea and couldn’t believe what i saw. My favorite Turkish band was giving a concert in the middle of the sea, people were swimming to the concert platform. We went there too, swimming, singing, clapping at the same time >.< I loved it!!!

Marrakesh: I was a bit disappointed with this one as I was full of expectations before going there. Due to the advertisements in social media, It is the most popular beach club in that area. The decoration, tables and bungalows were designed elegantly but it was not a place full of energy and I think this place impressed me in the photos because they were taken during night. So, I wish we spent just a night there not a full day.

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Fun Beach: That beach club was in another cost actually and we just wanted to try another location. That was the reason we chose to spend one day on this beach. I did not like the food, it was very windy and we couldn’t hear the music from the beach because the bar was located in the green area which is not very close to the beach.  The sea was extremely cold compared to the  Ayayorgi probably because this is more open than cove.

Babylon: My favorite!!! We went there last day of our vacation. And it is good that we saved the best one for the last day as I will mostly remember here. The whole place was larger than the others. They allocated huge place for everything: car parking lot, the green areas, the beach

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So, in conclusion I loved Ayayorgi but I am not a fan of Altinkum, I might have liked it if I did not visit Ayayorgi though. I realized during this vacation that I felt rested without getting bored. Visitors can have so much fun, enjoy happy hours after 5, clubbing and dancing nearby the sea or just find a quiet place on the green areas, lounge on the comfy cushions.

Loved the colors of the town

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Alacati Night Life:

Curcuna:

I liked this club because it has a nice, relaxing atmosphere and the decoration was super cool. The DJ was standing in an interesting location in the middle of the club: he is in  the car which is on top of the swimming pool 🙂

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Tektekci:

I liked the music and shots served in this place but we experienced something weird after midnight. The staff gave us all earphones to listen to music because it is forbidden to play loud music after midnight. They told us this regulation is applied only for the weekdays and the place is of course is more lively in the weekends.

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As for the restaurants we tried various popular ones and I like the local Mediterranian food restaurant. It was a very authentic restaurant with local foods (specific to Aegean)

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And the most suggested ones, Tuval and Barbun, were not bad either, I like the salmon grill which was served with wasabi sauce.

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Will I visit there again? If I live in Turkey after school, yes, but I first want to travel other countries.

XoXo

Printed Pants-Cobalt Blue

Hey guys, whats up?

I was in the hunt for printed pants for a while, I did not want one of these floral or black/white with geometric prints type of pants. I like the versatility of this one, I can combine with almost anything. And how gorgeous my friend looks here !! She uses one of my favorite colors “cobalt blue” in her outfit. Skorts are still trendy this year and I am planning on buying one for myself too.

I hope you enjoy the photos.

XoXo

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*Top from Zara

*Printed pants from F21

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*Skort from Zara

*Top from local store

*Upwatch accessorize

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Spa Day

Hello everyone, I hope you are having a great weekend. I and my friend wanted to escape from the city a bit and went to this beautiful spa/wellness center near Sapanca lake. The lake was nice to look at but we did not feel like swimming as it was not clean enough 🙂 There were “courageous” people swimming in the lake though.

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We first wanted to try out the indoor pools as it was too hot outside during noon time. Other than the usual sauna, massage rooms and pools there was this interesting place called adventurous rain shower. You get into an artificial cave which is made of dark stones and you can barely see anything. There is a giant rain shower on top. First you feel the rain coming down slowly with some relaxing music in the background then suddenly  thunderstorm noises start and rain gets heavy!! The thunderstorm sounds were so scary, we got out from there screaming 🙂 Not something you would expect on the spa day.

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After having our lunch, we spent the rest of the day by the pool, chatting, lounging and sunbathing.

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I liked this small gift they gave us at the end of our day.

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XoXo

Boyfriend Jeans

When it comes to boyfriend jeans, it is hard to choose one because they are mostly baggy and only suit those who have a slim and tall figure. When I saw these jeans in H&M, I was really happy to find somewhat figure hugging, tighter bf jeans. I like to add a girly piece like this floral top  to balance the look out.

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                                    Wearing *boyfriend jeans from H&M *Top from Topshop

Floral

It is super warm here today and I am so in the mood for going to the beach, sunbathing, listening to some music and reading girly magazines.
If it is super hot, I like to just pick my favorite floral dress and a hat. Sunscreen is a girl’ s bestfriend ofcourse, which reminds me of the song from Baz Luhrmann ((: “Everybody’s Free To Wear Sunscreen”
Baz gives other good advices too…

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