Friday, 31 July 2009

Disruptive Innovation: raison d'etre of the startup world?

A friend of mine directed me to this video. It is quite short and graphically represents a theory about disruptive innovation.

When you listen to this, it quickly feels like someone is describing the strategy used by most successful startups.

Recent great names like 37signals (with their simpler web based products) or Freshbooks (with their Accounting package) have pretty much all chosen to attack the market with a simpler , lower price, highly scalable product offering.

Right now, they seem to be at a cross-roads section, where they tend to increase the complexity of their product, in an effort to serve more users and generate stronger revenue figures.

What kind of choices will they make, moving forward ? Spin-off of smaller structures or brands? Up their market ?

Let's how far the theory applies...

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