Innovation in Business

Creative Destruction

Businesses are constantly relying on innovative ideas from their employees in order to up performance in the industry to knock out existing competitors. Managers know that competition is the key ingredient to a thriving economy. Managers realized that they had to find a way to quickly kick out competition and they came across an idea that is Creative Destruction. Creative Destruction is when something that existed in an industry before, such as technological ideas, product development, and economics, is no longer important and or “killed” because of another new innovation that has entered the industry.

There is a lot of examples of Creative Destruction in the business world today, and one of them is the introduction of Smart Phones in the technology area. Cell Phones, for the longest time, were mainly used for making calls and playing the occasional game of ‘snake’, but in this day in age cell phones are so much more than that. Cell phones, or now called smart phones, are extremely complex and now can do so much more than make calls and play ‘snake’. Smart phones are now capable of checking emails, social networking, taking pictures and videos, uploading anything to the internet, opening files, playing all kinds of games, listening and storing music, and holding more storage than ever before. The reason why smart phones are an example of creative destruction is because when they entered the technology industry; mp3 players, cameras, calculators, and watches, were no longer important and successful in the technological industry because of the fact that a smart phone could do all of those things on one device.

Creative destruction is an important aspect to innovation because it keeps businesses on their feet. ...

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...tunity to take over that company. Competition can be higher in these kinds of industries and companies because if one company lacks something that another company has, there is a greater chance of companies having to dropout if they are not making any progress like their competitors are.

References

Creative Destruction Definition | Investopedia. (n.d.). Investopedia. Retrieved April 16, 2014, from http://www.investopedia.com/terms/c/creativedestruction.asp

Johnston, K. (n.d.). The Advantages of a Fragmented Industry. Small Business. Retrieved April 15, 2014, from http://smallbusiness.chron.com/advantages-fragmented-industry-30745.html

Reams, P. (Director). (2012). The Men Who Built America [Documentary]. United States: A & E Television Networks.

Williams, C. (2013). Part 1, Innovation. MGMT Student Edition (6 ed., pp. 26-36). Mason, Ohio: Mike Schenk.