Disruption: Definition, Causes, Impacts and Tips for Dealing with It

Have you ever heard of the term disruption? In the business world, disruption is often seen as a term that has a negative connotation. The reason is that disruption is often related to changes that cause changes in an arrangement or order.

Disruption causes a significant impact if a business fails to adapt to the changes that occur. Therefore, disruption must be faced so that the business can continue to survive.

So, what exactly is meant by disruption and what are the tips for dealing with it?

Definition of Disruption

According to the Big Indonesian Dictionary (KBBI), disruption is something that is uprooted from its roots. From this understanding, disruption can be interpreted as a phenomenon when there is a change or a big leap that causes the entire order to change.

In the business world, disruption can be caused by changing times. This is what then becomes a quite tough challenge for the company to continue to innovate that is relevant to the changing times.

A company that still uses the old system or methods will most likely fail to compete with those who already have the new system. Therefore, every company must have the right strategy and steps to deal with disruption in the midst of today's competitive era.

Causes of Disruption

Broadly speaking, disruption is caused by massive changes that can change the entire order. In this case, there are two main causes of disruption, namely:

There are innovations that have never been offered before

One of the main causes of disruption is the innovation brought by new companies. In this case, they usually offer a new business model that has never been offered before.

Meanwhile, old companies are more focused on the business model being undertaken to maintain their market. This gap then becomes a market share for new companies to enter and offer innovations that did not exist before.

The Desire to Mutually Defend the Target Market

New companies tend to have a fairly strong foundation and business knowledge. This then becomes a dangerous loophole for old companies. The reason is, they will not think that their market will be changed by newcomers who have new innovations and resources.

Disruption Impact

Disruption certainly has a significant impact in the business world. Many companies, even though they are well established, still have to adapt to the times by innovating in terms of technology.

When they are unable to do that, it will be bad for the continuity of their business. Some examples of the most impactful businesses in this regard are retail businesses, print media, conventional taxis, and many more.

Tips in Dealing with Disruption

1. Doing Innovation

Doing innovation is the most important tip in dealing with disruption. Innovation is carried out by adjusting market developments that continue to change over time.

To be right on target, every innovation made must be accompanied by in-depth research. Besides aiming to fit the purpose, this research is also useful for saving costs that must be incurred.

2. Improving the Quality of Resources

In addition to innovation, the quality of resources also needs attention. The reason is, human resources with quality and integrity will bring positive changes to the company.

Quality resources also enable superior innovation and brilliant ideas to be created so that the company can survive in the face of disruption.

3. Perform Digital Transformation

The development of increasingly advanced technology causes various changes to occur, one of which is digital transformation. Sophisticated digital technology can make work easier and done quickly.

Well, that's a complete explanation of disruption. By understanding more about disruption, of course you can avoid its negative effects by following the tips above.